I want to encourage everyone to change their perspective and take a look at a very tricky pain point in the blockchain world that is rarely discussed openly—'the cold start of trust.'
Have you noticed that it's actually very easy to launch a new chain now? Just copy the code, run the nodes, and the chain is up. But what’s the hardest part? It’s getting others to believe that this chain is secure. For a new POS (Proof of Stake) chain, if its native token has a very low market value, then the cost to attack it is also very low. This creates a vicious cycle: because it’s insecure, no one dares to deposit money; because no one deposits money, the token's market value does not rise, making it even less secure.
This is like a newly established security company that can't recruit strong bodyguards due to a lack of reputation, and without bodyguards, it can't get big client contracts.
What the Lorenzo Protocol is doing is breaking this deadlock. It utilizes Babylon's technology to package the most indestructible 'trust consensus' on the planet of Bitcoin into an exportable commodity.
This is not just about how retail investors earn interest; it concerns the evolution of the underlying architecture of the entire blockchain industry.
Imagine the Bitcoin network as a heavily guarded 'super fortress' with trillion-dollar level defense walls. The outside world—those emerging Layer 2, Cosmos application chains, and modular data layers—are like small towns being built around the fortress. They are vibrant but extremely fragile.
Lorenzo is essentially operating a 'mercenary group'. It organizes the idle bitcoins (troops) we have in the fortress and leases this 'security defense capability' to the small towns outside, without relinquishing absolute control over the Bitcoin mainnet.
For those new chains, this is simply a lifeline. They no longer need to bribe nodes by crazily issuing their own tokens (which often leads to vicious inflation), but can directly introduce stBTC through Lorenzo. As long as they have stBTC staking, they immediately inherit Bitcoin-level security.
For us Bitcoin holders, Lorenzo allows us to transform from mere 'coin hoarders' into 'security service providers'.
The transformation of this role is very interesting. Previously, we thought Bitcoin had nothing to do with other chains and even looked down on them. But now, through Lorenzo, the value of Bitcoin is starting to penetrate into the marrow of other ecosystems. The more prosperous other chains become, the greater the demand for the security services provided by stBTC, and the more 'security fees' we earn.
This shared security economy is, in my opinion, one of the most important narratives for Bitcoin in the next decade.
The professionalism demonstrated by Lorenzo here lies in its extreme standardization of this complex 'security export' business. It relieves users from worrying about where to send troops, how to sign contracts, and how to prevent accidents. It packages the entire process into what we see as stBTC and YAT.
Looking further ahead, this is actually about deleveraging the crypto industry.
In the past, the security of many new projects was built on the overvaluation of air coins, which was a bubble. In contrast, the security based on the Bitcoin consensus delivered by Lorenzo is grounded in real physical computing power and the accumulation of a trillion-dollar market value. As more and more infrastructure begins to rely on this kind of 'hardcore security' provided by Lorenzo, the industry's resilience to risks is actually improving.
So, the next time you see the data growth of Lorenzo, don't just think it's the TVL increasing. In fact, Bitcoin is taking on and protecting this increasingly large decentralized world in a more proactive and constructive manner. This leap from 'self-interest' to 'benefiting the world' is the true magnificence of the Lorenzo Protocol.
