In the wave of blockchain technology reshaping the global financial landscape, the Lorenzo Protocol aims to "democratize smart investing" by building a bridge between traditional finance and decentralized finance (DeFi) through its native token BANK. This innovation not only unlocks liquidity value for Bitcoin holders but also redefines the on-chain asset management ecosystem with modular financial infrastructure, allowing smart investments to truly reach every blockchain user.
1. From the liquidity dilemma of Bitcoin to the new paradigm of DeFi: The birth logic of the BANK token
As the highest market cap cryptocurrency globally, Bitcoin has long faced the paradox of "holding is idling"—its decentralized nature creates a natural barrier to the liquidity demands of the DeFi ecosystem. Matt Ye, the founder of the Lorenzo Protocol, keenly captured this pain point and proposed the vision of "bringing institutional-level financial products on-chain," utilizing technologies such as liquidity staking and yield tokenization to enable Bitcoin to participate in DeFi yield generation while maintaining security.