A-Zu, over the past few days, I revisited Lorenzo's information: on one hand, there's the long article just launched by Binance Academy, which officially named it with terms like 'institution-grade on-chain asset management' and 'USD1+ / sUSD1+ stablecoin yield portfolio'; on the other hand, CMC and Messari continuously updated data, using TVL curves and yield performance to prove that this is not just a story-telling project. Looking back further, there are actions like WLFI officially spending money to buy BANK, launching an audit report repository, and integrating enterprise payments with TaggerAI, which completely upgraded the image of 'BTCfi small project' in my mind to 'a company attempting to move traditional asset management on-chain.'
Currently, Lorenzo is no longer satisfied with merely being a protocol that 'pays interest to retail investors'; it explicitly states in its official positioning that it is a Bitcoin Liquidity Finance Layer, connecting to BTC restaking scenarios like Babylon on one end and multi-chain DeFi, market-making, and trading platforms on the other, while inserting a layer called Financial Abstraction Layer in between, linking traditional financial risk control processes with on-chain programmable assets, outputting products in the form of OTF—on-chain traded funds. You can understand OTF as an 'investment fund with shares' on the chain: the underlying assets can be RWA, US Treasuries, quantitative strategies, LP, lending, and what users see is just a token and a net value curve.
USD1+ OTF is the core 'fund' in this machine. The official structure is clear: using WLFI's USD1 as the settlement currency, part of the position is placed on tokenized US Treasury bonds and other RWAs to earn the base interest rate, part is handed over to a centralized quantitative team for delta-neutral strategies, and part is used on-chain for lending, LP, and staking. After stacking these three lines together, they are priced uniformly through USD1, and then the returns are distributed to users using the USD1+ / sUSD1+ token pair. It is now genuinely running on the BNB Chain mainnet, with a minimum investment of 50 USD, supporting deposits in USD1, USDT, and USDC. I personally went through the process with a small amount: authorization, deposit, received sUSD1+, and then I observed the subtle changes in my wallet's share and NAV daily, rather than the stimulating red and green candlestick charts. This feeling is quite similar to watching money market fund returns in a bank app.
What really impressed me about USD1+ was its performance during the harsh market conditions. A recent study by Messari specifically mentioned that during the network-wide liquidation event on October 10-11, sUSD1+ not only did not follow the market down but actually produced about a 1.1% profit in a single day, with a 7-day annualized return close to 50%, practically demonstrating the narrative of 'multi-strategy + strict risk control'. At the same time, Lorenzo compiled historical audit reports into a separate GitHub repository, listing reports and corresponding remediation records from several auditing firms like CertiK and PeckShield, even clarifying some minor issues related to slippage calculations, providing a transparent window for institutions and large holders to 'review the code and the fixes'. For someone like me who often stumbles in DeFi, these two points together resemble a foundational asset management infrastructure that genuinely intends to operate for many years rather than a farm that changes its guise after one shot.
On the BTC side, Lorenzo is also quietly deepening its moat. The TVL currently tracked on DefiLlama is around $500 million, with the majority being BTC-related assets. Third-party introductions even describe Lorenzo as the 'Bitcoin Liquidity Finance Layer' and 'Bitcoin Liquidity Aggregator'. The core idea is to break down the originally dormant BTC into two combinable assets of 'principal' and 'yield rights' through stBTC, ENZOBTC, and LPT/YAT, allowing them to be utilized across multiple chains for lending, collateral, and market-making. The latest step is to link with Bitcoin-secure L2s like BitLayer, running tasks and issuing incentives, expanding the BTCfi model back to the 'native Bitcoin world'. For older Bitcoin players who value security boundaries, this 'path closer to the mainnet and away from high-risk bridges' is appealing. For me personally, the combination of stBTC and enzoBTC means: I can use part of my position to continue earning returns from Babylon's 'debt-like' products while using another part as 'on-chain cash' to pair with USD1+ and create a more balanced portfolio.
Many people are now discussing BANK, focusing solely on the token price while overlooking the continuously accumulating 'rights' behind this token. Research articles from platforms like Binance, Bybit, and Bitget have reiterated: BANK is the governance and utility hub for Lorenzo. After locking it up, it transforms into veBANK, which is the real 'power vote', determining protocol fee rates, incentive distributions, treasury usage, and so on. Recent official articles on Binance Square have further elaborated on veBANK, emphasizing its design features such as weighted lock-up duration and non-transferability, which separate 'short-term impulses' from 'long-term building', allowing those willing to support the protocol for the long haul to obtain more governance and revenue rights. From an observer's perspective, if you look back at July this year when WLFI spent around 63,000 BANK from its own pocket, coupled with a $1 million incentive program in collaboration with BNB Chain, PancakeSwap, and BUILDon, it's hard to interpret this as an attitude of 'taking the money and running'; it feels more like increasing stakes in its asset management partnership brand.
What's even more interesting is that Lorenzo's user profile has expanded beyond 'retail investors and DeFi farmers' to also include B-end users. The latest update from CMC mentions that it has established an enterprise-level integration with TaggerAI: simply put, when businesses use services like TaggerAI, they can directly deposit funds into USD1+ OTF, serving as 'reserve funds and accounts payable' while automatically earning interest, ensuring that 'money is working before it is spent'. This sounds very TradFi but indeed meets the real needs of many corporate finance departments: wanting USD cash available at any time while avoiding letting it sit idle and lose to inflation. For the protocol, such scenarios offer more continuity than simply chasing airdrops—once certain corporate financial habits are 'nurtured', the cash flows behind USD1+ and BANK will stabilize significantly.
Based on my practical experience and these latest developments, I now view Lorenzo more as a company rather than just a token that 'might pump'. If you ask me how an ordinary user could participate more comfortably at this stage, I would suggest three levels of engagement. The first level is information alignment: spend some time reading the Lorenzo article on Binance Academy, a few research papers from exchanges, and Lorenzo's official blog on USD1+ / stBTC to understand its product matrix and who pays interest to whom. The second level is to use 'small amounts of money that you won't mind losing' to run a complete experience, such as putting $50-100 into USD1+, or minting stBTC / ENZOBTC with a bit of BTC, observing for a few weeks your returns and psychological comfort with this 'slow growth' rhythm. The third level, if you find yourself increasingly viewing Lorenzo as a stable part of your portfolio rather than a short-term play, is to consider locking a small portion of BANK into veBANK, transforming from a 'customer' into a 'shareholder', and genuinely focusing on governance proposals, fee updates, and collaboration progress.
Ultimately, whether it's CeDeFAI or Bitcoin Liquidity Finance Layer, these seemingly advanced terms will ultimately boil down to an age-old question: are you willing to give your time value to this protocol for amplification? Lorenzo's recent 'seemingly boring' actions—publicizing audit warehouses, integrating enterprise payments, WLFI purchasing BANK with real money, and consistently rolling out educational content in the Binance ecosystem—are actually telling us that what it aims to achieve is not just a market cycle but a long-term business with cash flow, clients, and a governance structure. As for whether you want to get on this vehicle, it depends on how honest you are about your understanding of risk, return, and how much you can comprehend this structure.
