Recently, I took a look around and found that many people still have their BANK in a dormant state, either collecting dust in exchanges or waiting in wallets for the so-called 'take-off.' Brothers, it's already the end of 2025; if you keep playing like this, that golden shovel in your hand is no different from scrap iron. The Lorenzo ecosystem is no longer just a simple staking concept; real profits are hidden in those combinations you haven't noticed.
I want to squeeze the profits from BANK; you can't just look at single-point mining. You have to see it as a LEGO block, building your own profit matrix through different levels of combinations. Today, I will break down the three-layer structure of this matrix: the basic profit layer, the ecological acceleration layer, and the risk leverage layer. Once you understand these three layers, your BANK can truly start working for you.
The first layer, the basic yield layer, is the safety net. The simplest operation is to stake BANK for native token rewards, but that's just an appetizer. The real first step should be to use BANK as the 'fuel' and 'accelerator' for minting stBTC. Currently, the mechanism in Lorenzo is that by staking a certain amount of BANK, you can receive a fee discount when converting BTC to stBTC, and it can enhance your efficiency in acquiring re-staking points. Don't underestimate this; I did the math, and with and without BANK acceleration, the comprehensive yield of stBTC can differ by 3 percentage points in a year. Therefore, the first step is not mindless staking, but calculating your BTC fund amount and configuring a BANK position that optimizes fees and efficiency; this is the foundation.
The second layer, the ecosystem acceleration layer, requires you to have some intuition about the projects within the ecosystem. stBTC, as an income-generating asset, has already connected with at least three lending and derivatives protocols in the Lorenzo ecosystem. At this point, your BANK becomes a VIP pass. For example, on Lorenzo Lend, using BANK as one of the collateral assets will give your borrowing health a higher weight, meaning you can borrow more assets with less collateral. There are risks, of course, but the key is how to control them. Here, I want to share three non-standard criteria I personally use to evaluate such native lending protocols, which helped me avoid the wave of L2 lending liquidations last summer. First, check whether its liquidation engine relies solely on a single oracle; second, see whether its risk parameters are completely decided by a slow DAO voting process or if there is an emergency response team; third, and most importantly, I will look at its stress test reports, especially simulations of extreme situations involving native ecosystem tokens as collateral. Only agreements that meet these three points will I consider putting BANK into as an accelerator.
The third layer, the risk leverage layer, is for the skilled, with both high returns and high risks. The specific operation is what we often call cyclical lending. In Lorenzo Lend, collateralize BANK and stBTC, borrow stablecoins, then use the stablecoins to buy stBTC, and then deposit it... This cycle can multiply your annualized returns several times, but it also maximizes liquidation risks. The key to this operation lies in judging the price trends of BANK and BTC, as well as the extreme control of the protocol's liquidation line. To be honest, I do not recommend this for beginners. It reminds me of my early experiences with leverage in another ecosystem, where an unexpected 'pin' caused my position to evaporate in three minutes. The root cause was neglecting the inherent volatility of native tokens, which is far higher than mainstream assets. So if you decide to leverage, make sure to only invest money that you can afford to lose and set the liquidation line conservatively.
As you can see, from the basic staking fuel to the core collateral within the ecosystem, and then to leveraged tools that drive higher yields, BANK has formed a complete yield loop. This is no longer just a story of holding a token and waiting for appreciation, but rather a game about how to become a deeply engaged participant in the ecosystem. As the narrative of Bitcoin L2 becomes clearer, those who can use multi-chain asset management tools will gain an advantage in the next cycle.
After discussing so much, these are some of my personal practical insights. Besides what I've mentioned, what hidden gameplay for combining BANK have you found in the Lorenzo ecosystem? Let's discuss in the comments.
The above content is solely a personal opinion and does not constitute any investment advice. The market has risks, and investments should be made cautiously.
