Many current projects in the Bitcoin ecosystem are still stuck in the paradigm of 'how to better bring BTC into other ecosystems.' This is essentially a form of 'financial outsourcing.' I believe that the ultimate future of the Bitcoin ecosystem is to establish a sovereign financial system with complete self-circulation capabilities that does not rely on any external ecosystems. The exploration of @LorenzoProtocol aligns perfectly with this profound direction.
Viewpoint 1: Liquidity sovereignty is the foundation of financial sovereignty
A sovereign financial system must possess independent liquidity generation and pricing capabilities. If the asset price discovery and major transactions of the Bitcoin ecosystem occur on Uniswap or Curve, then its financial lifeline is in the hands of others. The Lorenzo Protocol feeds back into the Bitcoin ecosystem by aggregating global liquidity, and its long-term vision is undoubtedly to eventually return the gains and liquidity back to Bitcoin itself or its Layer 2, gradually nurturing the depth of the native market.
Viewpoint 2: Diversification of yield sources is a hallmark of sovereign maturity
In the early stages, the protocol needs to seek yield across chains, which is a pragmatic move. However, the hallmark of maturity is that the Bitcoin ecosystem can generate sufficiently attractive yield scenarios internally (such as borrowing based on Bitcoin collateral, DEX trading fees on Bitcoin Layer2, financialization of Bitcoin NFTs, etc.). The Lorenzo Protocol can serve as a catalyst, bringing in capital and users from external yields to encourage the development of internal applications, ultimately forming a closed loop from 'external blood transfusion' to 'internal hematopoiesis'. The governance of $BANK will play a key role in this process, determining the flow of capital.
Viewpoint 3: $BTCST: potentially becoming the 'basic government bond' of sovereign finance
In an economy, government bonds are the most core risk-free yield assets. $BTCST has the potential to play this role — a 'yield-generating government bond' directly or indirectly supported by Bitcoin itself, enjoying global market yields. If this understanding is widely accepted, $BTCST will become the interest rate anchor and pricing cornerstone of the Bitcoin sovereign financial system, its significance far exceeding that of an ordinary yield-bearing token.
Conclusion: The profound significance of the Lorenzo Protocol lies not in the high APY it can offer today, but in whether it can lay the first track for Bitcoin sovereign finance. It may start from being a 'global yield aggregator' and ultimately evolve into the 'central bank and treasury of Bitcoin sovereign capital'. This path is fraught with challenges, but once navigated, the value of $BANK will be deeply bound to the growth of an emerging financial system.
How long do you think it will take for the Bitcoin ecosystem to establish a self-sufficient sovereign financial system that does not rely on Ethereum DeFi?
@Lorenzo Protocol #LorenzoProtocol $BANK
