Lorenzo Protocol: Why Bitcoin holders today feel they were "poor" despite having wealth 🔄
Imagine this scenario:
· Old Bitcoin investor: bought for $3000, now owns 3 Bitcoins (≈ $200,000).
· The problem: His assets are "sleeping" - not generating returns, not participating in DeFi, just stored.
· Previous solution: Lending her at 2% interest with regulatory risks.
Lorenzo says: Enough. Your Bitcoin must work like any product asset in the traditional financial world.
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The gap filled by Lorenzo: between the "store" and the "generator"
The old system is Lorenzo's new system
Storing BTC in Cold Wallet converting BTC to liquid stBTC
Yield 0% Yield 5-15% annually
Zero liquidity using stBTC in 20+ chains
Regulatory risks hedge through futures contracts
The simple equation:
Bitcoin + Lorenzo = Productive + Liquid + Protected Bitcoin
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Real innovation: OTFs - The first true "investment fund" on-chain 🏦
Imagine you could:
· Put 0.5 Bitcoin in the "digital hedge fund"
· The fund trades automatically between:
· Arbitrage between exchanges
· Trading futures contracts
· Volatility strategies
· You receive an OTF token whose value increases with profits
The unique feature:
You do not follow the market 24/7...
The smart fund does it for you, with complete transparency on-chain.
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Treasuries: Not just lending... but an intelligent "yield factory"
The simple treasury:
· Deposit BTC → Get a fixed return of 8%
· The secret: Use derivatives to generate income without selling BTC
The compound treasury:
· Combine:
1. Quantitative algorithms searching for market patterns
2. Yield-generating futures contracts
3. Insurance against downturns
· The result: Yield of 12-18% with partial protection
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stBTC: The secret that makes Bitcoin "liquid without risks"
1. Storage: You send BTC to a secure protocol
2. Liquidity: You receive stBTC (immediately liquid)
3. Yield: You earn from:
· Core storage rewards
· Use stBTC in DeFi
· Invest stBTC in OTFs
The practical example:
1 Bitcoin → stBTC →
50% in yield treasury
50% in multi-strategy OTF
= Annual yield of 9-20% with full liquidity
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$BANK: Not just a token... but a "gold membership card" 🏅
veBANK (the smartest system):
· Lock BANK → Get veBANK
· The longer the lock duration → the more it increases:
1. Voting power (controls the direction of the protocol)
2. Your share of the fees (weekly profit distribution)
3. Your additional rewards on stBTC and OTFs
Wisdom:
The system rewards long-term participants, not short-sighted speculators.
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The numbers that make traditional investors shiver:
· BTC yield on Lorenzo: 5-25% annually (depending on risk)
· Liquidity: Across 20+ chains (BNB Chain, Ethereum, Solana, Sui...)
· Locked value: Approaching $500 million
· Daily transactions: 10,000+ OTF transactions
But the most important number:
0% - The percentage of users who had to sell their original Bitcoin.
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Why is this more important than any other DeFi project?
Because it doesn’t try to "replace" the traditional financial system...
But it elevates it to the level of blockchain.
The smart investor doesn’t want a "venture"...
Wants institutional returns easily over retail funds.
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Challenges (honestly):
1. Complexity of the interface: You need to learn new concepts
2. Risks of smart contracts: audit is necessary
3. Reliance on partners: like Babylon for storage
But the feature:
Every operation is auditable on-chain...
Transparency is non-existent in traditional finance.
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How to start as an ordinary user?
1. Start small: 0.01 BTC in stBTC
2. Try the treasury: Start with the simple treasury
3. Learn OTFs: Find a fund that fits your risks
4. Get $BANK: to participate in governance
The golden hint:
Don’t put all your eggs in one basket...
Distribute between stBTC and OTFs and treasuries.
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The future: What awaits BTC holders?
· 2026: Integration with traditional banks for BTC wounds
· 2027: Pension funds accepting investments through Lorenzo
· 2028: BTC becomes the "best product asset" in the world
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The question you should ask yourself:
Are you ready to:
· Your Bitcoin sleeps while others earn 15% annually?
· Do you lose liquidity just because you store traditionally?
· Missing the revolution that makes BTC the strongest financial asset in history?
If your answer is "no"... then Lorenzo is your bridge to the future.
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The final summary:
Lorenzo didn’t invent the wheel...
Make the financial wheel turn on the rails of blockchain.
Bitcoin is no longer just "digital gold"...
Has become a "digital oil" fueling a whole economy.
And the question is no longer "Should I use Lorenzo?"
But "How much will I lose if I delay?"
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Share your opinion:
How do you envision the future of Bitcoin as a product asset?
And which part of Lorenzo interests you the most? ⬇️
