The Evolution of Bitcoin: From Store of Value to Yield-Generating Asset
For over a decade, Bitcoin has been the pure guarantee of the cryptocurrency world—secure, scarce, yet mostly unproductive. The next phase of the market, "BTCFi", is about activating this stagnant capital.
@Lorenzo Protocol is leading this campaign with an advanced approach to liquid deposits.
Unlike standard deposit models, Lorenzo offers a dual structure of tokens resembling couponless bonds in traditional finance. By splitting Bitcoin into liquid principal tokens (LPTs) and yield-bearing tokens (YATs), they allow users to hedge risks or speculate on yield independently.
This provides a level of financial precision never seen before in the Bitcoin ecosystem. It allows institutional players to manage duration risk while individual users can simply hold for yield. This is the financial engineering required to bring the upcoming trillion dollars of liquidity on-chain.💜
