The finance sector is developing at a rate that very few people truly grasp. For several years, traditional banks have maintained absolute dominance regarding our savings, loans, and remittances.
Even as cryptocurrency emerged and matured, there existed very few DeFi projects that truly evereded implementation as a replacement for traditional banking. Lorenzo Protocol breaks that chain. It doesn’t seek to replicate but instead calls for something truly reflective of a bancary.
Lorenzo Protocol, at its essence, represents a full stack banking solution that is implemented on the very foundation of Bitcoin security. Rather than developing yet another isolated lending app and/or yield farm solution, they instead aimed at solving problems that currently preclude people from utilizing cryptocurrency as a form of money.
To achieve this, there is the Lorenzo Bank Coin, denominated as BNK, which represents the Lorenzo Protocol token.
The remarkable thing about this project is that it feels so normal. You don’t have to learn about liquidity pools and permanent loss to appreciate it. Just launch the app and link your wallet, and you’re capable of things that your traditional bank still can’t, like immediate settlements, stablecoin interest rates that beat inflation, and loans against your Bitcoins without having to sell them. All these things are done on chain and in a transparent manner without anyone taking a cut.
And one of the brainiest things Lorenzo has done with Dether is offer assets that are completely backed and secured with Bitcoins within vaults. When you make an investment with BTC, they issue you a token representation that you can use within the platform to make money. You don’t have to let your Bitcoins lie dormant because your assets remain un touched yet you get an opportunity to put your Bitcoins to work.
On the banking side, it goes far beyond simple lending. You can have what will appear as real accounts on chain: savings accounts offering competitive interest rates, accounts for spending with virtual credit cards, and even business accounts with automatic payroll services. It’s all non-custodial, so you maintain possession of your own private keys, but it’s smooth enough so that your non-crypto friends wouldn’t be able to tell the difference.
It’s clear that security considerations have been at the forefront from inception. Not only does it have multi-layer security with physically isolated vaults and third-party audits, but it’s also insured for assets on deposit. It’s easy to be dazzled by numbers associated with returns, but it doesn’t hurt that security considerations rank as highly as they do.
But it’s the fact that Lorenzo emphasizes sustainable growth over hype that truly makes it stand out. There are no large pre-sales for insiders, no shady token unlocks that threaten to bring the price down. From launch, they opted for a fair launch and ensured that there is legitimate utility for the token. As a Lorenzo Bank Coin holder, you get privileged rates on borrowing, boosted stakes, and voting powers within the system. It’s more than just a governance token; it’s an engine that keeps the entire banking system running.
The numbers are telling. Months after its inception, billions worth of Bitcoins have entered the system, illustrating that people will be more than happy with an alternative solution to conventional finance when it finally presents itself. Moreover, people aren't simply using it as a depot system and then abandoning it because they are utilizing the banking facilities because they are better.
We’re witnessing something that rarely occurs, and that’s a crypto project that doesn’t have to promise an ROI of 1000% or more to gain traction because it provides something more precious; something more valuable.
As some blockchain projects are competing with regards to who currently boasts the biggest TVL, Lorenzo is busy developing an infrastructure which could make classic banking as quaint as dial-up internet. It has absolutely nothing to do with wanting to replace Bitcoin and more about giving Bitcoin a banking layer that it deserves and has always needed. It’s only now that you have a chance at really using your BTC as money without losing your ownership and risking anything. That’s not a sales gimmick. That’s what might end up being the new normal method millions are using for banking. A new era isn’t on its way. It’s already here with Lorenzo Bank Coin. The only question at this point is just how long the old ways will pretend as if nothing’s changed.
