In this market round, many people are still stuck in the mindset of "wherever there is high APY, we rush there," but Lorenzo's recent series of new actions have honestly completely surpassed the traditional DeFi farm category. The official positioning is "Institutional-grade on-chain asset management," and Binance has directly published the principal's article on BANK and on Seed Tag, effectively giving this narrative a compliant and professional stamp: this is not a simple BTCFi driven by stories; the new route is to abstract trading strategies, RWA, stablecoins, and BTC liquidity into standardized On-Chain Traded Funds layer by layer, and then conduct unified scheduling through the Financial Abstraction Layer.
For Azu, the real reason I kept refreshing the Lorenzo page was the new developments about CeDeFAI in November. In simple terms, Lorenzo used to 'move institutional strategies on-chain'; now it has started to transform into 'using AI to manage the entire strategy portfolio.' A report from Phemex mentioned that Lorenzo is creating a comprehensive asset management platform called CeDeFAI, using AI to enhance OTF's quantitative trading strategies, while through cooperation with TaggerAI, allowing corporate clients to link part of their earnings sources and data transactions while managing stablecoin funds with USD1+ OTF, which is akin to adding a 'data revenue' pipeline next to the 'fund pool.' Furthermore, the Financial Abstraction Layer automates fund routing, strategy selection, and risk control parameters, essentially creating an entire AI-driven asset management backend on a modular Bitcoin layer.
I tried to experience it from the perspective of 'a lazy asset manager.' Entering the Lorenzo App, I chose a product line related to USD1+, and the interface no longer simply shows an annualized return, but breaks down the sources of strategies, expected volatility range, and underlying asset allocation. The risk warnings also have an institutional style. After connecting my wallet, I exchanged a small amount of stablecoins for USD1, then flowed into USD1+, and the front end told me not 'that you are mining in a single vault,' but 'you have subscribed to an OTF composed of quantitative, RWA, and CeFi strategies, and the returns will gradually reflect in the net value of sUSD1+'. This experience is completely different from buying structured financial products on CEX or rushing to farms on-chain; it feels more like embedding an AI-driven 'smart investment advisor' into the wallet.
The latest round of changes in the rules actually strengthens the positioning of the 'asset management platform' rather than being just a one-time activity. Binance Academy has clearly stated that Lorenzo will use a Vault + FAL structure to manage funds: users simply deposit assets into the vault, and the contract issues you LP tokens representing shares. The funds are then allocated to different strategy combinations by FAL according to established risk parameters, with real performance regularly fed back onto the chain to update net values and position structures. For DeFi players like us who are used to screening pools ourselves, this is equivalent to acknowledging that 'the underlying has become complex enough to require a backend asset management system for engineering management,' rather than having every user manually adjust positions. Meanwhile, BANK has also layered the veBANK mechanism, allowing long-term lock-up participants to engage in incentive and fee rate weight distribution, resembling the negotiation of power between traditional fund LPs and GPs.
Interestingly, Lorenzo has started to expand new OTF products, no longer just focusing on BTC or dollar yields. Binance's introduction mentions BNB+, which is essentially the tokenized share of the Hash Global BNB fund, driven by traditional 'on-chain cash flows' such as BNB staking, node operations, and ecological incentives. Users receive BNB+ that grows with the net value, without needing to stake or run nodes themselves. This is similar to the design logic of USD1+: it retains on-chain transparency while encapsulating complex operations in a tradable token. For veteran players like me who have already run multiple rounds of liquidity in the BNB ecosystem, having a 'funded' BNB yield entry is a fairly natural extension of the configuration.
Another often overlooked but crucial detail at the rule level is wallet binding and identity mapping. Previously, Lorenzo provided a clear deadline on X, requiring users to complete wallet binding before a certain cutoff time, otherwise some points and subsequent rewards might not be retroactively issued. This appears to be just an event announcement, but behind it, it is actually about the structured management of 'user identity and rights to earnings.' For the protocol, this allows points and rewards to genuinely land on active users rather than forever lying in a pile of cold wallets; for long-term participants in the BANK ecosystem like us, it also means treating 'information synchronization' as an equally important daily action as 'fund operations.'
If in the past two years, Lorenzo was more focused on the narrative of 'BTC liquidity layer + stBTC ecosystem,' now AI and CeDeFAI have taken the story to another dimension. My previous operational logic was: first, clarify which BTC L2 or DeFi protocol to bet on, then see if stBTC or enzoBTC can be involved, and whether the regulatory and contract risks are acceptable; now, it can be reversed, starting from the OTF product line, first looking at the strategy brochure and risk range of this 'fund,' then verifying its performance through publicly available on-chain data, and only then deciding whether to invest BTC or stablecoin assets in proportion. The strategy choice has elevated from 'micro protocol selection' to 'meso asset portfolio configuration,' which is a typical asset management perspective.
As Azu, I also tried to reserve a small proportion of 'experimental land' for Lorenzo in my position structure. Part of it is conservative stablecoins, which I would prefer to place in USD1+ or subsequent OTFs that are expanded, observing the elasticity of sUSD1+ net value during different market cycles, and seeing whether the strategy chooses to hedge or contract during volatility. The other part is higher volatility positions, such as BNB or some long-held BTC, where I would attempt to seek higher risk compensation through products related to BNB+ or stBTC. The feeling after the experience is that as long as you don't expect 'overnight wealth,' treating these products as 'professional managed warehouses' in your portfolio, combined with your familiar manual trading, actually feels much more comfortable.
For ordinary users, these new rules and dynamics will ultimately result in several very concrete impacts. First, you no longer need to piece together a bunch of strategies or open numerous CEX sub-accounts to run quant, as Lorenzo abstracts these into OTF, using CeDeFAI to assist you in strategy routing and risk control. What you need to do is understand the product descriptions and distinguish the risk tiers, rather than frantically chasing 'insider strategies' in Telegram. Second, the selection space for asset types has expanded, from BTC, stBTC, enzoBTC, to USD1+/sUSD1+, BNB+, and potentially more multi-asset OTFs in the future, effectively providing a relatively matching option for every risk preference. Third, after BANK's debut on Binance, the narrative is no longer about 'pure project tokens,' but directly linked to the growth of the entire asset management platform, and the veBANK model has also involved long-term participants in the project's decision-making structure.
If you want to get started with Lorenzo now, Azu's own path might look like this: first, spend about ten minutes going through the Binance Academy tutorial on Lorenzo to understand the meanings of keywords like Vault, FAL, and OTF; then connect your commonly used wallet on the official website, complete wallet binding and personal center settings to ensure that subsequent points and activities won't be missed; next, use a small position that you 'can afford to lose' to try out a complete deposit, check net values, and exit on USD1+, BNB+, or some OTF that interests you, to experience the rhythm of the entire product line; finally, add Lorenzo's announcement page and X account to your information flow, paying special attention to new asset access like CeDeFAI, TaggerAI cooperation, USDO, and any voting on adjustments to BANK and veBANK weight. As long as you make these actions a habit, your position in this new wave of 'AI + BTC asset management' will not just be a passive follower.
