I stumbled upon BANK in a crypto community last year. At that time, it had just completed its IDO through Binance Wallet and PancakeSwap, selling out in two hours and over-subscribing by 183 times, which piqued my curiosity. I already had a substantial amount of Bitcoin, and I always thought Bitcoin could only be hoarded until its price increased. To earn stable returns, I had to convert it into other coins, which was particularly cumbersome, until I learned about the Lorenzo Protocol, realizing that Bitcoin could also 'come to life.'
1. First, let me explain what I understand about the Lorenzo Protocol. Its core function is to help unlock liquidity for Bitcoin. Simply put, when you deposit Bitcoin, you receive a certificate like stBTC or enzoBTC. With this certificate, you can use it freely on over 20 chains without waiting for the staking period to expire, such as for trading, borrowing, or earning extra returns on other platforms. I think this design is very practical; it doesn't interfere with my long-term holding of Bitcoin while allowing it to help me generate income, which is much more cost-effective than just hoarding coins.
2. The BANK token, as the governance token of this project, has quite a few uses. I currently hold a portion of BANK and have staked half of it, which allows me to receive 30% of the protocol's revenue dividends, with an annualized return of about 24-36%. Additionally, I can get a 20% discount on cross-chain fees. More importantly, holding BANK allows me to participate in project decisions, such as voting to adjust staking rates and cross-chain fee rates. I feel like I am not just a simple investor but can grow alongside the project.
3. I think there are two main points that make BANK reliable. First, the team and background are solid; the founder was previously a trading engineer at a large company, and the operations manager also comes from a well-known project. Additionally, there is backing from Binance Labs, and the tokens of the team and investors will not be unlocked in the first year, which prevents early massive sell-offs that could crash the price, making me feel quite assured. Second, there are real profits and a deflation mechanism; a portion of the project's revenue will be used to buy back and burn BANK. Moreover, once the TVL exceeds 500 million USD, the burn rate will increase to 50%, which can reduce circulation and enhance value in the long term.
4. Of course, risks cannot be ignored. I have held BANK for more than half a year, witnessing it rise by more than 10% in one day, and also experiencing a drop of 20% in a single day. After all, its market value is still not high, so the volatility is certainly significant. Moreover, there are not just one project doing liquid staking for Bitcoin; the competition is quite fierce. Whether it can maintain its lead will depend on subsequent technical optimizations and ecosystem expansion. I believe that investing should be done within one's means, and not all money should be invested in it.
Overall, I think BANK can stand out in Bitcoin DeFi because it captures people's genuine needs. More and more people have Bitcoin and want to appreciate their assets. The Lorenzo Protocol just addresses this pain point, plus there is support from the Binance ecosystem and a clear profit logic. I believe that as long as more collaborations can be continuously implemented, BANK's potential is quite substantial.
#LorenzoProtocol @Lorenzo Protocol $BANK
