What Exactly is a "Bitcoin Liquidity Layer"?

You see the term"Bitcoin Liquidity Layer" thrown around a lot with @Lorenzo Protocol , but what does it actually mean on a technical level? It's more than a buzzword; it's a foundational shift. Think of Bitcoin's blockchain as a supreme settlement layer—secure, robust, but slow and expensive for complex transactions. A liquidity layer sits on top, not competing with it, but enhancing it. Lorenzo's layer acts as a dedicated, high-throughput environment specifically designed to handle the creation, trading, and management of Bitcoin-backed assets. Instead of forcing every single transaction back onto the main chain, it bundles and settles proofs, maintaining a cryptographic link to Bitcoin's security. This architecture is crucial because it aims to solve Bitcoin's two biggest DeFi hurdles: native programmability and speed. By creating a specialized space where Bitcoin's value can flow freely and be programmed into smart contracts, Lorenzo isn't just wrapping BTC; it's building a highway system for it. The $BANK token is the governance mechanism for this entire highway system, determining tolls, road rules, and new expansions. Understanding this core technological premise is key to seeing its potential scale. #lorenzoprotocol $BANK