In the past week, I have turned off most of the market software. The brothers in the group have gone crazy, rushing to this zoo today and that mascot tomorrow. Some have multiplied their investments tenfold overnight, while others woke up to nothing.

This is a typical PVP (Player vs Player) market. At this stage, everyone is racing to see who can run faster and who has the most information. But as an old investor, I must pour cold water on the excited brothers:

Historically, any Meme frenzy ultimately ends with 99% of assets going to zero.

So, where will the 'smart money' that made money on Memes, or the 'big funds' that dare not participate in the gambling, go next?

There is an eternal law in the financial market called 'sector rotation'. When high-risk speculative sentiment recedes, funds will definitely seek 'certainty'. They will flow to those infrastructures with real returns, technological moats, and the ability to accommodate large funds.

In this bull market, the only sector that can withstand this tremendous wealth is BTCFi (Bitcoin Finance). And within BTCFi, I am optimistic about the Lorenzo Protocol as a 'fund reservoir'.

Today, let's step out of the noise of memes and discuss why Lorenzo will be the first stop for funds to flow back, and why its token BANK will be the 'golden shovel' of this cycle.

Chapter One: The Inevitability of Returning from 'Gambling' to 'Investment'

Everyone remembers the bull market of 2021. First, Dogecoin and SHIB were flying everywhere, and then? Then funds flowed back to DeFi, creating the main surge of Curve and Aave.

Why? Because gambling cannot last, people always need to sleep, and funds always need to be secured.

The current Bitcoin ecosystem is the same. Everyone is currently speculating on inscriptions, runes, and various meme coins on Bitcoin. But this is unsustainable. When your assets have multiplied by 10 times, what do you most want to do?

You definitely don't want to lose this money back. You want to deposit it in a safe place that can also generate interest every day, allowing you to sleep soundly.

This is the meaning of the existence of the Lorenzo Protocol.

Lorenzo uses Babylon's technology to turn Bitcoin into an income-generating asset. It does not require you to monitor the market, and it does not require you to compete with scientists in speed. You just need to deposit Bitcoin, and it will continuously generate returns for you through underlying PoS staking and upper-layer DeFi strategies.

This is the necessary path from 'high-risk gambling' back to 'steady appreciation'. For large funds, Lorenzo is not an option, but a necessity.

Chapter Two: Breaking the 'Liquidity Island' - The Aggregation Effect of Lorenzo

The current Bitcoin ecosystem is facing a huge problem: fragmentation.

Look at the current market, Merlin is a chain, B² is a chain, Bitlayer is another chain. Each chain is building its own ecosystem, and users' Bitcoins are scattered in various corners, with liquidity as fragmented as broken glass.

This is fatal for DeFi. If liquidity is not concentrated, large-scale lending and trading cannot be done.

Lorenzo saw this pain point. Its strategy is very clever: it does not create a single public chain, it creates a 'liquidity distribution layer'.

Lorenzo is like a huge central bank. It absorbs all the Bitcoins in the market and packages them into a standardized stBTC. Then, it 'wholesales' these funds to various Layer 2 public chains.

For users, you do not need to research which public chain is safer; you just need to recognize Lorenzo. For public chains, they do not need to struggle to attract deposits; they just need to connect to Lorenzo's interface to obtain a continuous flow of liquidity.

This positioning as an 'aggregator' has made Lorenzo the bottleneck of the entire Bitcoin ecosystem. In the internet era, platforms are always worth more than individual applications. In the Web3 era, protocols that hold the power of liquidity distribution are the top-tier platforms.

Chapter Three: Not Just Interest, But a 'Nested Model of Multiple Returns'

Many newcomers will ask: Banks also offer interest; why store with Lorenzo?

Because Lorenzo gives you the opportunity of 'one fish, multiple meals'. Let's analyze what you will get when you deposit 1 Bitcoin into Lorenzo:

The first layer of income: Babylon's staking rewards. This is the security fee given to you by the Bitcoin network. The second layer of income: Layer 2 ecological rewards. Lorenzo distributes funds to public chains like Merlin, and these public chains will thank you by airdropping their own tokens. The third layer of income: DeFi strategy income. Through Lorenzo's OTF (on-chain fund), your funds may participate in quantitative hedging or lending, which is another source of income. The fourth layer of income: BANK token incentives. This is the subsidy given to you by the Lorenzo platform.

With this set of combinations, your annualized return rate may be astonishing. And the most critical point is that the amount of Bitcoin in your hand has not decreased (if you choose a principal protection strategy).

What do we call this? This is the ultimate version of 'risk-free arbitrage'. In traditional finance, such opportunities belong only to top hedge funds. But in Lorenzo, this is open to everyone.

Chapter Four: The Golden Shovel Effect - The Re-evaluation of BANK's Value

Finally, we must talk about the token BANK.

Why do I say it is a 'golden shovel'? In the crypto world, a golden shovel refers to those tokens that can continuously mine new coins just by holding them. BNB is a golden shovel (because of Launchpool), and ETH is a golden shovel (because of airdrops).

In the Bitcoin ecosystem, BANK is evolving into a new golden shovel.

The logic is simple: Lorenzo connects countless Layer 2 projects. If these projects want to gain more exposure on the Lorenzo platform or want more funds to flow to their chain, they often choose to airdrop to veBANK holders.

This is no longer speculation but a trend that is happening. In the future, you may only need to hold a veBANK account and receive various token airdrops from cooperative project parties every month. You don't need to do anything; just lie back and collect money.

At this moment, the price of BANK no longer depends solely on its own fluctuations, but on how much 'gold' it can mine. When everyone realizes that holding BANK is equivalent to owning a 'hen that lays golden eggs', its price's imagination space will be completely opened up.

Chapter Five: Why Now?

Timing is the most important aspect of investing.

Now, Bitcoin has just broken through its historical high, and market sentiment is extremely exuberant. However, the real DeFi explosion often lags behind the explosive rise in coin prices. Right now is the transition point between the two phases: the meme carnival is nearing its end, and infrastructure construction has just begun.

Binance Labs is doubling down on Lorenzo at this point in time, clearly sensing the rhythm. For us ordinary investors, laying out Lorenzo now is to seize the opportunity for the next round of sector rotation.

Don't wait until everyone on the street is talking about 'Bitcoin wealth management' to enter the market. By then, the yield will have already been diluted, and the chips for BANK will have been snatched up by institutions.

Conclusion

Brothers, in this market, it might be a single gamble that can make you rich, but it is definitely an accurate judgment of cycles that can help you preserve wealth and continue to grow rich.

The wind of memes will eventually stop, and the hype of meme coins will eventually dissipate. But Bitcoin, as the cornerstone of trillion-dollar assets, has eternal income demands. The Lorenzo Protocol is laying the tracks for this trillion-dollar asset.

Get off the gambling table, exchange your chips for BANK, and become friends with time. Perhaps a year later, you will find that this was your most correct operation in this bull market.

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