Lorenzo Protocol, a DeFi platform focused on the USD1 stablecoin and real-world asset (RWA) yield-based products, has built a strong foundation through the integration of Bitcoin liquid staking and the launch of innovative products. To enhance the value and utility of its main token, BANK, they have a series of strategic steps being implemented and planned for the future. Here are the details:
1. Expansion of USD1+ OTF Product Adoption as the Backbone of Yield
In July 2025, Lorenzo launched the USD1+ On-Chain Traded Fund (OTF) on the BNB Chain mainnet, offering an APR of up to 40% through a combination of RWA, DeFi, and quantitative strategies. During testing, deposits exceeded $165 million, showing high interest. For the future, they will focus on:
- Partnership enhancement to expand use cases, such as collaboration with Openeden and B2B integration with Tagger AI.
- Expansion to other chains to enhance accessibility and liquidity of this product.
- Greater adoption of USD1+ will increase the utility of BANK as a governance token, as holders can participate in determining yield policies, fee distribution, and protocol upgrades — potentially creating buying pressure on BANK.
2. Development of the Bitcoin Liquid Staking Ecosystem
Lorenzo acts as a layer of Bitcoin liquidity finance, matching Bitcoin holders with projects that need BTC liquidity and converting deposited BTC into liquid staking tokens (stBTC). Future plans include:
- Launch of Phase Two Mainnet that will refine liquid staking features, including the separation of principal and yield through the innovative Liquid Principal Token (LPT) and Yield Accruing Token (YAT) standards.
- Enhanced integration with the Babylon ecosystem (a major Bitcoin staking project supported by Lorenzo) to maximize rewards for users and increase the scale of BTC liquidity released into the downstream DeFi ecosystem.
- Development of structured financial products based on stBTC to attract more investors, both individual and institutional.
3. Expansion of Strategic Partnerships and Institutional Adoption
Lorenzo has built partnerships with various parties to strengthen its position, such as:
- Block Street XYZ to expand the use of USD1 in cross-border B2B payments.
- Chainlink to integrate data feeds, CCIP, and proof of reserve to enhance security and transparency.
- In the future, they will continue to seek partnerships with large companies, neobanks, and fintech platforms to drive adoption of USD1 and Lorenzo's products by institutions. Real adoption by companies will be a strong catalyst for BANK's long-term value.
4. Strengthening Governance Mechanisms and Tokenomics
BANK serves as a governance token that allows holders to make decisions within the Lorenzo ecosystem. For the future, they will:
- Strengthening governance processes to be more self-sufficient and transparent, ensuring that the voices of BANK holders have a real impact on the direction of protocol development.
- Exploring additional incentives for BANK holders, such as staking rewards or rights to a portion of the protocol's revenue, to enhance community engagement and lock token supply.
- Managing the risk of sell pressure post-airdrop (42 million BANK tokens distributed in September 2025, equivalent to 8% of the total supply) by increasing liquidity and encouraging holders to retain tokens for the long term.
5. Regulatory Handling and Security Enhancement
Uncertain regulations, especially regarding stablecoins, pose potential challenges for Lorenzo, as USD1 is backed by World Liberty Financial and faces scrutiny in the US. To address this:
- Lorenzo will continue to comply with applicable regulations and work with authorities to obtain legitimate recognition for USD1 and its products.
- They will strengthen the protocol's security by using institutional-grade solutions and an internal cybersecurity team, as well as leveraging integration with Chainlink for proof of reserve to enhance user trust.
Future Outlook
The future performance of BANK will be influenced by how quickly Lorenzo can implement these plans, along with external factors such as cryptocurrency market trends and regulatory changes. Despite the risks of sell pressure post-airdrop and regulatory uncertainties, the growth of USD1+ adoption, the development of the Bitcoin liquid staking ecosystem, and the expansion of strategic partnerships provide a positive outlook for BANK's medium to long-term value.
