Risk Warning: The products, annualized return rates, and data mentioned in this article are examples or compilations of public information and are for educational and discussion purposes only; they do not constitute investment advice or profit guarantees. The prices of crypto assets fluctuate wildly, so please be sure to conduct your own research (DYOR) and act within your means.
1. From holding passengers to 'protocol partners'
Simply holding BANK feels more like sitting in the 'economy class' of the protocol: bumping along with the market, happy when it rises, anxious when it falls.
In the design of LorenzoProtocol, those truly holding the steering wheel are the addresses that lock BANK into contracts and exchange it for veBANK—these addresses possess higher governance rights, priority allocation rights, and a greater weight on certain profits.
The veToken (Vote-Escrowed Token) model introduced by LorenzoProtocol essentially distinguishes between two types of roles:
Short-term price speculation circulation holders
veBANK holders willing to lock and bear the time cost for the long-term development of the protocol
From an economic perspective, LorenzoProtocol uses 'time' to filter out real long-term participants, and through protocol rules, allocates scarce resources (popular RWA vault quotas, higher mining weights after Boost, potential protocol income distribution rights) more towards these individuals.
Two, Why does LorenzoProtocol use veBANK?
LorenzoProtocol's main battlefield is BTCFi and RWA (vault-type real-world assets). These types of products usually share several common characteristics:
Limited quotas: For example, Vaults anchored in short-term bonds, high-quality credit, or compliant custody assets often have scale limits;
Strict risk screening: The protocol prefers to allocate these quotas to those who truly understand the risks and are willing to bind with the protocol long-term;
Frequent conflicts in rush purchases: If fully opened to all addresses, it is prone to script sweeps, Gas wars, and new users being unable to purchase.
Under this premise, LorenzoProtocol did two things through veBANK:
Bind 'priority eligibility' with 'locking duration':
The longer you lock, the higher the veBANK weight you obtain, giving you an advantage in whitelist ranking and yield acceleration.Filter out some 'speculative demand':
For those who only want to enter and exit in the short term, the opportunity cost of long-term locking is very high, naturally retreating to the second line and leaving opportunities for addresses willing to participate long-term.
Simplified understanding:
Spot BANK = Ticket
veBANK = 'Gold Card Member' after upgrade
Three, The core mechanism of veBANK: using time to exchange weight
veBANK is not a newly issued token but the result of converting BANK through 'locking + time.'
LorenzoProtocol adopts a typical linear decay model:
Locking for 4 years: Obtain a 1:1 veBANK weight (100% weight)
Locking for 2 years: Approximately 50% weight
Locking for 1 year: Approximately 25% weight
Locking for 1 week: Only very low weight (close to 0)
In other words, for 10,000 $BANK:
Locking for 4 years ≈ Getting 10,000 veBANK weight
Locking for 1 year ≈ Getting 2,500 veBANK weight
From a game theory perspective, LorenzoProtocol explicitly rewards addresses that are 'long time + large holdings,' allowing real long-term participants to:
Priority subscription order for popular RWA vaults;
Yield Boost multiples for pools like stBTC / USD1+;
On potential protocol income distribution/governance weight,
are significantly better than short-term participants.
Four, From BANK to veBANK: Complete Path to Get Started
Below is a simplified operational path to help you find your way in LorenzoProtocol's product interface (the specific interface is subject to the actual release of the project):
Prepare assets
Hold a certain amount of $BANK in your wallet (for example, 10,000 coins, for illustration only).
Reserve a small amount of mainnet Gas fees.
Connect governance panel
Open LorenzoProtocol's Governance / veBANK Dashboard (usually a secondary page on the official website).
Use a wallet to connect (such as MetaMask, OKX, Binance Web3 wallet, etc.).
Choose Lock parameters
Enter the locking quantity in the 'Lock BANK' interface;
Select the locking duration (from 1 week to a maximum of 4 years).
The page will generally display in real-time the amount of veBANK you can obtain and the corresponding weight.
Confirm the transaction and generate veBANK
Sign and submit on-chain transaction;
BANK will be locked into the Voting Escrow contract;
The corresponding veBANK weight will be recorded under your address, non-transferable, and can only decay linearly over time.
Activate additional rights (common settings)
In some product interfaces, you need to check or click buttons like 'Apply Boost / Activate Boost';
After activation, your mining rewards in related pools may obtain a coefficient of up to about 2.5 times (specific values are subject to official parameters).
Five, Overview of veBANK Benefits: The Triple Dividends Behind the Ticket
LorenzoProtocol usually designs three main benefits around veBANK (which may be slightly adjusted in different stages, subject to the official actual rules):
Priority whitelist for Launchpad / new Vaults
Newly launched high-demand RWA vaults (e.g., certain types of short-term government bond strategies, institutional-grade note portfolios) often set a 'priority subscription period';
During this phase, only addresses that reach a certain veBANK weight can participate in quota seizing;
After the priority period ends, remaining quotas will be open to regular BANK holders or the public.
Yield Accelerator (Boost)
In core Vaults like stBTC, USD1+, mining or points are usually tied to veBANK weight;
With the same principal, addresses with higher veBANK weight have the opportunity to obtain higher actual annualized yields or points accumulation speed;
This creates a very obvious medium to long-term gap for users who are doing long-term strategy allocation.
Protocol income and governance weight
LorenzoProtocol has the opportunity to return part of the protocol income (such as part of management fees, performance fees) to addresses with higher veBANK weight;
In governance, voting rights on proposals related to new category introductions, risk parameter adjustments, RWA partner selections will also be linked to veBANK.
You can understand veBANK as 'super rights points' in the LorenzoProtocol ecosystem:
Not for trading, but to continually enhance your priority and yield weight across all product matrices.
Six, Visualization of Fund Flow and Benefit Flow: veBANK Path Map
This diagram summarizes the main path from BANK → veBANK → multiple benefits in LorenzoProtocol:
Funding layer: BANK is locked into the Voting Escrow contract;
Logic layer: Calculate veBANK weight based on locking time and quantity;
Equity layer: Corresponding to whitelist eligibility, yield boost, governance/income weight.
Seven, Real-world effects: Locking rates, moats, and 'class固化'
From the perspective of token economics, the veBANK model has several important impacts:
Increase the long-term locking ratio
High weight veBANK requires a longer locking period;
As more users choose to lock for 1 to 4 years, the actual circulation of BANK has been significantly compressed;
Under the same other conditions, this helps reduce short-term selling pressure and emotional fluctuations.
Form a 'time moat' of price and consensus
A portion of users are willing to lock for 2 to 4 years, indicating confidence in the long-term development of LorenzoProtocol;
Such users not only obtain more weight in terms of yield but also become the 'backbone' of the protocol's governance.
The 'co-deposition' relationship between the protocol and users
For LorenzoProtocol, veBANK makes it easier for the protocol to plan long-term routes (such as long-term RWA cooperation, compliance paths, cross-chain layouts, etc.);
For users, the decision to lock is itself a 'team formation': choosing who to bind with for the next few years.
It is important to remind that this mechanism, while creating long-term consensus, will also bring about a certain 'class固化' -
Early high-weight veBANK addresses hold advantages on many levels. New users need time and locking to catch up, which is both an opportunity and a threshold.
Eight, Risks and Costs: veBANK is not a 'zero-cost upgrade'
From the perspective of compliance and education, it is very necessary to clarify the risks of veBANK:
Liquidity is completely locked until maturity
Once locked, your BANK cannot be unlocked early during the locking period;
Whether the price rises or falls midway, you cannot use this portion of the principal for other operations;
This is a typical game of 'exchanging liquidity for higher expected returns.'
veBANK weight decays over time
With each passing day, the remaining locking time becomes shorter, and the corresponding veBANK weight will decrease linearly;
If you want to maintain 'VIP status' long-term, you need to regularly extend the locking period (Relock), which means ongoing management costs.
Strategies and parameters may be adjusted
The distribution of benefits, Boost multiples, RWA whitelist rules in LorenzoProtocol may be adjusted according to market and compliance environments;
The yield structure you see today may not remain unchanged forever, and the locking behavior itself also faces 'risk of rule changes.'
Dual risks at the protocol and market levels
All yields and rights of veBANK ultimately depend on the security of LorenzoProtocol itself, strategy management capabilities, and the credit of RWA counterparties;
The price of BANK itself is also affected by market sentiment and industry cycles, and may fluctuate sharply.
Nine, Who is it suitable for? How to view veBANK
From the perspective of 'educational content + risk awareness', veBANK is more suitable for these types of users to consider:
Have some research on the BTCFi/RWA track, understanding the credit and compliance risks involved;
The funding itself is more biased toward medium to long-term allocation rather than ultra-short-term trading;
Pay more attention to structural advantages like 'high-quality product quotas + increased yield rights,' rather than daily price fluctuations;
Can accept the psychological pressure of severe price fluctuations during the locking period.
If you just want to speculate on the price of BANK in the short term, the liquidity cost brought by veBANK may far exceed the benefits you receive.
If you are more concerned about the long-term layout of LorenzoProtocol (such as RWA matrix expansion, BTCFi market penetration, compliance partner expansion), then veBANK is more like a 'long-term partner ticket' with governance attributes.
Ten, Summary and Disclaimer
LorenzoProtocol transformed 'holding time' into quantifiable governance and profit weight through veBANK;
The longer the locking period, the higher the veBANK weight, which has more advantages in the Launchpad whitelist, yield boost, protocol income, and governance voting;
The cost is that the principal cannot be moved at all during the locking period, and the veBANK weight will decay over time, requiring continuous management;
This design essentially reshapes 'who qualifies for the most scarce financial resources' using code.
Finally, reiterate:
This text is only for technical and mechanism analysis and does not constitute investment advice or profit commitments for BANK, veBANK, or any RWA products.
Everyone's risk tolerance, funding cycle, and strategy preferences are different. Please be sure to DYOR and make cautious decisions based on your own situation.
I am a sword seeker, an analyst who only looks at the essence and does not chase noise.
