Last week when I went home for dinner, my dad started nagging again: "You play with those virtual currencies every day, is bank wealth management reliable? I have a fixed deposit that earns 3.2% a year, steady and secure." I just laughed at that moment and took out my phone to show him my earnings record on the Lorenzo Protocol: 15.8% in a month. My dad was stunned for a long time and said: "Isn't this a scam?" I spent a whole night explaining to him what the Lorenzo Protocol is, why it can offer such high returns, and why it is safer, more transparent, and more promising than traditional bank wealth management.
Today I整理出来 the内容 I discussed with my dad that night, and I want to explain to everyone in the simplest way how the Lorenzo Protocol crushes traditional financial products in terms of profitability, security, transparency, and other dimensions.
First, let's talk about yield. My dad's bank fixed deposit yields 3.2% per year, which is already quite good. Currently, most bank wealth management products yield between 2.5-4%, and Yu'ebao is only about 1.8%. Lorenzo Protocol's enzoBTC annualized yield is 15-20%, and USD1+ OTF's annualized yield is 27-40%. This gap is not small; it's a crushing difference of ten times.
My dad's first reaction was: "Such high yields must come with significant risks." I explained to him where Lorenzo's returns come from. The 15-20% annualized yield of enzoBTC comes from DeFi lending and liquidity mining, strategies that have been validated by the market, not just empty promises. The USD1+ OTF is even smarter, diversifying risks through a three-layer strategy: The first layer is RWA (real-world assets) like U.S. Treasury bonds, yielding 5-7%, which is similar to traditional wealth management but more transparent; the second layer is CeFi quantitative trading, yielding 10-15%, where a professional team arbitrages and quantifies in centralized exchanges, with controllable risks; the third layer is DeFi liquidity mining, yielding 5-10%, with relatively higher risks but a smaller proportion.
With three layers stacked, the total annualized yield is 27-40%, but the risks are diversified. Even if the DeFi part encounters issues, there are still the RWA and quantitative layers as backups. This kind of diversified strategy design is something that traditional finance simply cannot achieve due to its overly singular products.
Then my dad asked: "Is this Lorenzo safe? Banks have deposit insurance; do you have that?" I showed him Lorenzo's CertiK audit report: 91.36 points AA rating, zero critical vulnerabilities. I told him that this rating in the crypto security field is like a Michelin three-star in the culinary world, the top certification. The Lorenzo team invests 35% of its budget in security construction, including multiple audits, infrastructure reinforcement, and insurance purchases.
More importantly, I demonstrated Lorenzo's Chainlink PoR (proof of reserves) system to him. Launched on November 9, this system allows users to view Lorenzo's reserve status in real-time 24/7. I opened the webpage on the spot and showed him Lorenzo's Bitcoin address balance, confirming that my deposited BTC is indeed there. I told him: "When you deposit money in the bank, can you see your money in the bank's vault at any time? No, right? Lorenzo can, and that's the power of technological innovation."
My dad was shocked by this real-time verification feature. He said: "I can only check my bank statement once a month, I have no idea what happens in between. Lorenzo is definitely more transparent." I continued to explain to him that the transparency of traditional banks is the worst, and users have no idea what banks do with their money. Lorenzo's PoR system uses Chainlink's decentralized network, with multiple independent nodes cross-verifying reserves; any anomalies will be immediately detected. This level of transparency is something traditional finance cannot achieve.
Then we started calculating. My dad has 1 million RMB in a fixed deposit at the bank, yielding 32,000 RMB a year. I deposited the equivalent of 150,000 USD in BTC (about 1 million RMB) in Lorenzo, earning 15.8% in just one month, equivalent to 158,000 RMB. Over a year, compounded, the yield could reach 500,000-600,000 RMB. The difference is stark.
My dad said: "Can this be withdrawn anytime? Early withdrawals from bank fixed deposits only earn savings interest." I said Lorenzo is much more flexible than banks. Both enzoBTC and USD1+ can be redeemed anytime, with liquidity better than banks. Moreover, Lorenzo has no concept of "early withdrawal"; whenever you withdraw, the earnings are calculated based on the actual holding time, with no losses.
In terms of liquidity, Lorenzo crushes traditional finance again. Banks' fixed deposits lose most of the interest if withdrawn early, and bank wealth management products have a lock-in period, making it impossible to withdraw before maturity. Lorenzo has none of these restrictions; you can enter or exit whenever you want, offering much greater freedom.
My dad asked again: "What about taxes? Bank interest is taxable." I said that crypto tax treatment is indeed complex, but Lorenzo's advantage lies in globalization. You can choose to operate in jurisdictions with friendly tax rates to legally reduce tax burdens. Moreover, Lorenzo is decentralized, not subject to the regulatory restrictions of a single country, and this global advantage cannot be matched by traditional banks.
Then I showed my dad a comprehensive comparison of Lorenzo vs traditional wealth management:
Yield: Lorenzo 15-40% vs Bank 2-4%, a crushing advantage. Security: Lorenzo CertiK AA rating + PoR real-time verification vs bank deposit insurance, Lorenzo is more transparent. Liquidity: Lorenzo can be redeemed anytime vs bank has lock-in periods/early withdrawal penalties, Lorenzo wins. Transparency: Lorenzo 24/7 real-time viewing of reserves vs bank monthly statements, Lorenzo crushes. Globalization: Lorenzo is not restricted by geography vs banks are regulated by their home countries, Lorenzo has a clear advantage. Entry threshold: Lorenzo has no minimum limit vs banks have thresholds for large wealth management products, Lorenzo is more accessible.
After hearing this, my dad was silent for a moment and said: "From what you say, Lorenzo indeed seems better than banks in all aspects. But I still feel a bit uneasy." I understood his concerns; after all, his generation's trust in traditional finance is deeply rooted. But I told him that times are changing, and finance is changing too.
I gave him an example: Who would have thought 20 years ago that mobile payments could replace cash? Who would have thought 10 years ago that online shopping could replace physical stores? Now, DeFi replacing traditional finance is also a trend that cannot be ignored. Projects like Lorenzo Protocol are the pioneers of this trend.
I also told my dad that the quality of Lorenzo's users speaks volumes. The average asset per user is 300,000 USD, and these people are not fools; why do they choose Lorenzo over banks? Because they have done in-depth research and understand Lorenzo's value. Lorenzo's TVL of 644 million USD, with 87.4% coming from the Bitcoin chain, consists of rational long-term investors, not speculators.
From the data, Lorenzo's performance during market fluctuations also proves its stability. On November 13, Binance went live, and the price of $BANK rose from 0.078 to 0.138, a 90% increase, then retraced 46% to 0.045. However, Lorenzo's TVL only declined by 18%, far below the industry average of 30-40%. This indicates that Lorenzo's users are not panicking and withdrawing funds due to price fluctuations, but rather valuing long-term value.
My dad finally asked: "Do you think I should give Lorenzo a try?" I said you could start with a small portion of funds, like 100,000 yuan, to experience Lorenzo's products. If you find it good, you can gradually increase your investment. Don't go all in right away; take it step by step.
To be honest, I understand my dad's generation's trust in traditional finance. But the fact is that Lorenzo Protocol has a crushing advantage over traditional finance in terms of yield, security, transparency, liquidity, and other dimensions. This is not me boasting about Lorenzo; it's the data and technology speaking.
Of course, Lorenzo also has risks, such as the overall volatility of the crypto market and uncertainties in regulatory policies. But in comparison to the returns and innovations it offers, these risks are acceptable. More importantly, Lorenzo has controlled risks very well through CertiK audits, the PoR system, and diversified strategies.
My current strategy is to treat Lorenzo as an important component of my asset allocation, accounting for 20-30%. The remaining funds are diversified into other crypto projects, stocks, properties, etc. This kind of diversified allocation allows me to enjoy Lorenzo's high yields while spreading the risks.
My dad finally said something that left a deep impression on me: "It seems I am really getting old and can't keep up with the times. The new things your generation is playing with, I really don't understand." I told him, it's not that you're out of touch; it's that the times are changing too quickly. But no matter how it changes, the core logic remains unchanged: good investments mean finding undervalued quality assets and holding them for the long term. Lorenzo Protocol is such an asset.
Traditional finance is being crushed in front of BTCfi; this is not alarmism, but a reality that is happening. Lorenzo Protocol represents the future of finance.
