Adoption and Community Liquidity and Market Access
Adoption and Community
Falcon Finance adoption is growing very rapidly, as reflected in the following figures:
Total Value Locked (TVL): The total value of assets locked in the protocol has surpassed $1.9 billion, with USDf supply reaching $1.8 billion. This indicates a high level of trust from users. Active Users: The protocol has been used by over 58,000 active monthly users. Wide Ecosystem Integration: USDf has been integrated with various leading DeFi protocols such as Pendle, Morpho, Uniswap, and Curve, and has been listed on several renowned exchanges. This wide integration enhances the utility and liquidity of USDf.
Stake BTC with Lorenzo Start by depositing your BTC within the Lorenzo ecosystem. Choose a non-slashable PoS chain in the Babylon ecosystem. Lorenzo will then convert your deposited BTC into BTC liquidity enhancement tokens (BLRTs)
Restaking Liquidity Tokens (LRTs) After staking begins, the Staking agent mints Liquid Restaking Tokens (LRT), Liquid Principal Tokens (LPT), and Yield-Accruing Tokens (YAT) in Lorenzo and transfers them to the Staker.
Usage/Holding When BTC restaking generates rewards, YAT accumulates additional value. Stakers can hold/use liquid principal tokens (LPT) and yield-accruing tokens (YAT) within the Lorenzo DeFi ecosystem.
The integration of AI and blockchain is increasingly attracting attention in the current blockchain ecosystem. KITE (Kite AI) is a blockchain platform specifically designed for AI agents. Its main mission: to empower AI agents to complete "identity verification → payment initiation → receipt/settlement" entirely on the blockchain in a self-governing environment. The project team consists of AI and data infrastructure experts with backgrounds from Databricks, Uber, and UC Berkeley.
Liquid Bitcoin Restaking Plan (BLRP) The Liquid Bitcoin Restaking Plan (BLRP) aims to unlock liquidity that is usually locked due to BTC restaking. When users stake BTC, Lorenzo converts it into the liquid BTC staking token (BLRT) through BLRP. BLRT retains the value of BTC while allowing seamless interaction within the DeFi ecosystem.
Liquidity Principal Token (LPT) Liquidity Principal Token represents the right to claim the staked principal Bitcoin after the restaking is completed. LPT does not have to be in the same form as the original staked BTC. However, Lorenzo promotes stBTC, a token pegged to BTC, as the official LPT to avoid liquidity fragmentation.
Regulation and Credibility Falcon Finance builds trust through several key pillars:
Leading Institutional Support: This protocol is backed by DWF Labs, a renowned market maker and venture capital firm in the crypto industry, along with a strategic investment of $10 million from World Liberty Financial (WLFI). The trust from these institutions serves as a positive signal for the project's credibility. Experienced Team: Falcon Finance is initiated by Andrei Grachev, a partner at DWF Labs with a strong background in fintech and crypto assets.
Adoption and Community A crypto project requires a strong community and a good level of adoption to survive in the long term. A large allocation of tokens to the ecosystem (48%) is designed to encourage community growth through incentive programs, airdrops, and staking rewards.
Kite's success in attracting developers to build diverse AI Modules will be a key factor in creating a valuable network and driving further adoption.
Is Kite Worth Buying? Profit Potential Strong utility and ecosystem integration Adoption and a growing user base Tokenomics that are profitable Strategic partnerships and support Technical Innovation The profit potential from investing in Kite is very large. Its unique approach to integrating AI with blockchain technology places it at the forefront of the rapidly growing market, appealing to AI enthusiasts and blockchain investors. Support from leading investors enhances its credibility and opens doors for strategic partnerships that can further drive adoption.
LORENZO PROTOCOL acts as a digital intermediary, facilitating connections between two key players: Staker: This is an individual who stakes their BTC (Bitcoin) in the Lorenzo ecosystem. By staking BTC, they contribute to the overall liquidity of the pool. Babylon: Babylon represents the DeFi platform that is hungry for additional BTC liquidity. It seeks to effectively utilize the staked BTC within its ecosystem. Lorenzo ensures that stakers find suitable projects while helping projects access the Bitcoin liquidity they need.
Tokenomics and Token Utility Understanding the FF token economy is crucial before you decide to get involved.
The distribution of FF tokens is designed for long-term growth. The total token supply is 10 billion FF. Here are the details of the allocation:
Allocation Percentage Purpose Ecosystem 35% For development, user incentives, and cross-blockchain integration. Foundation 24% For risk management, audits, and operational support of the foundation. Core Team & Early Contributors 20% For the development team, with a vesting period of 1 year and gradual release over 3 years.
Regulation and Credibility In investing in any crypto asset, including Kite crypto, understanding the credibility of the project is an important step in managing risk.
Strong Team and Funding: Kite was founded by industry veterans in AI and data infrastructure from renowned companies such as Databricks and Uber. The project has raised $35 million from prominent investors like PayPal Ventures, Coinbase Ventures, and General Catalyst. This support demonstrates a high level of confidence from leading financial institutions and venture capital.
Gate Learn Course Article Glossary Research Search Gate Learn Article Lorenzo Protocol: A Platform that Unlocks Bitcoin Liquidity Lorenzo Protocol: A Platform that Unlocks Bitcoin Liquidity 23/7/2024, 09.37.13 Intermediate Bitcoin DeFi Discover how the Lorenzo Protocol transforms staked BTC into liquid restaking tokens, enhancing liquidity and enabling participation in DeFi. Learn how Lorenzo facilitates Bitcoin liquidity, making it more versatile and accessible to users across the DeFi ecosystem.
Technology and Infrastructure Falcon Finance is built on a number of advanced technologies to ensure security, stability, and efficiency. Here are its two main components:
USDf (Synthetic Dollar): This is the core stablecoin of the protocol. You can mint USDf by depositing collateral. For other stablecoins like USDT, the process is 1:1. For volatile assets like Bitcoin, the system applies an over-collateralized model to protect against price fluctuations. sUSDf (Yield-Bearing Token): This is the main innovation of Falcon Finance. By staking the USDf you own, you will receive sUSDf tokens. The value of sUSDf continues to increase over time as it accumulates yield generated by the protocol. The longer you hold sUSDf, the more yield you accumulate.
Technology and Infrastructure To support these ambitious goals, Kite is built with a unique and sophisticated technology architecture:
Blockchain EVM-compatible: Kite is compatible with the Ethereum Virtual Machine (EVM), making it easier for developers to migrate their smart contracts and use familiar tools from the Ethereum ecosystem. Proof of Artificial Intelligence (PoAI): This is an innovative consensus mechanism designed to track contributions from various parties, such as data providers, AI models, and agents, and then allocate rewards fairly. It is the 'heart' that drives participation in the network.
To optimize BTC assets, the Lorenzo Protocol has developed two derivative products: stBTC (staked BTC) This asset is BTC locked in a smart contract to generate yield. By leveraging the liquidity from users, stBTC enables passive returns from staking activities. enzoBTC (wrapped BTC) Wrapped BTC used in yield farming and trading strategies within the Lorenzo ecosystem. It has cross-chain compatibility and can be used for liquidity on other DEXs. These two assets pave the way for investors to utilize BTC more productively in the DeFi space.
Lorenzo Protocol (BANK) is a highly ambitious and innovative project aimed at revolutionizing the use of Bitcoin in the DeFi space. The concept of Liquid Restaking Bitcoin has great potential to open new markets and generate yields for Bitcoin holders. However, the underlying technology is very complex, and the risks associated with new protocols dealing with high-value digital assets are significant. Despite having an attractive tokenomic model and promising early adoption, investments in BANK should be approached with caution due to the existing technical and regulatory uncertainties.