An obvious trend in the past two years is that the number of DeFi projects around BTC is increasing, with an overwhelming array of options such as re-staking, yield aggregation, and synthetic assets. For the average user, a realistic problem is — I don't have the energy to research the details of every protocol, but I don't want to watch others reap so many layers of yield from BTC. At this time, a protocol that can package multiple opportunities into a 'yield layer index' becomes very attractive, and Lorenzo is, to some extent, moving in this direction.
Its approach is not simply to mix all strategies into one pool, but to select targets with the mindset of 'portfolio management': which strategies have low correlations that can hedge against some fluctuations; which strategies, although they have high returns, carry excessive tail risks and are only suitable for a very small portion of the entire pool; and which can temporarily increase their weight under specific market conditions while maintaining a low allocation during normal times. These concepts sound very quantitative, but essentially, they are not fundamentally different from traditional fund management logic; they have just been moved on-chain, executed with smart contracts and transparent positions. This is completely different from my past experience of 'manually managing a portfolio.'
In the past, it was either greedy, rushing into a seemingly appealing BTC pool, only to have the strategy fail and the entire position suffer; or it was a complete mess of diversification, with dozens of small positions scattered across different protocols, resulting in exorbitant Gas fees and management costs. Now, using Lorenzo's approach is more like buying a basket of pre-screened BTC yield strategies, where you only need to monitor a few core indicators: overall pool performance, risk exposure, and capital inflow and outflow, without having to chase every sub-strategy's short-term fluctuations. Of course, saying it's like an 'index' doesn't mean it's completely risk-free.
However, compared to single-point bets on high-risk protocols, it has diluted some idiosyncratic risks through diversification and structural design. The role of $BANK has also become interesting: it is no longer just a 'token issued by the project party', but is linked to the use and expectations of the entire set of yield layer combinations. As more and more funds choose to use Lorenzo as the entry point for BTC yield exposure, the governance, profit sharing, and re-staking activities around the token will naturally become richer. In the hotspot of the main arena, whether you are chasing AI, RWA, or Meme, you will eventually find that Bitcoin remains the hardest cornerstone of this market.
Instead of starting from scratch every round to chase new concepts, it's better to integrate opportunities brought by different narratives into a more robust 'long-term equity' on the BTC main line. Lorenzo's advantage lies in the fact that it stands on the BTC main line itself and uses a combinatorial thinking approach to help mitigate the probability of hitting single points of failure. For those who are already tired of chasing every 24-hour hotspot, such a product is more worthy of patience. @Lorenzo Protocol #LorenzoPro $BANK
