The cryptocurrency market has never been just a speculative playground, and its real financial needs and structural pain points have not been effectively met to this day. Among them, Bitcoin, as one of the most important crypto assets, has long been seen as ‘digital gold’, but its capital efficiency is seriously lacking. The emergence of BTCFi is to address this issue, as the project attempts to unlock the profit potential of BTC through on-chain mechanisms.

Lorenzo was born in such a background. Currently, Lorenzo has integrated more than 20 public chains and over 30 protocols, providing on-chain income services for over $6 billion in BTC, becoming a representative project in the BTCFi track. However, the overall size of the crypto market has long surpassed Bitcoin itself. With stablecoin trading volumes surpassing Visa and Mastercard, DeFi’s TVL once reached $250 billion, various financial entry platforms are growing rapidly, and platforms that can only optimize around a single asset quickly emerge. Just optimizing around a single asset is far from enough. The real opportunity lies in how to connect CeFi and DeFi, and drive funds to truly “live”.

Meanwhile, both individual users and institutions are seeking a simpler and more unified way to access on-chain returns. Although Ethereum’s PoS staking is popular, the cross-chain experience is poor and the operation is cumbersome; stablecoins have a circulation of over 160 billion US dollars, but lack effective channels for utilization. The crypto industry has entered a new stage, and the demand for tokenized financial products is rapidly increasing. Platforms such as Neobank, PayFi, wallets, RWAFi, DeFAI, etc. are constantly emerging, but they have not yet found an ideal income solution.

In this context, Lorenzo chooses to further extend from BTCFi and take on a broader “on-chain asset management” role, providing landing scenarios and continuous returns for funds, and also building a channel between CeFi and DeFi.

Upgrade path: from BTCFi to the financial abstraction layer

Lorenzo’s evolution is not accomplished overnight. As a leader in the BTCFi phase, it has accumulated a solid foundation in integrating liquidity and strategic capabilities. Now, facing the new trend of accelerated integration of CeFi and DeFi, Lorenzo is upgrading to an on-chain ‘investment banking-type’ platform, accepting more complex asset structures and institutional-level financial service needs by building a financial abstraction layer.

The key to this transformation is the core system introduced by Lorenzo - Financial Abstraction Layer (FAL). FAL is not a single product, but a scalable toolkit that tokenizes CeFi financial products and packages asset custody, yield generation, strategy scheduling, and other functions into a unified on-chain interface.

FAL abstracts on-chain asset management and income generation as ‘callable components’: project parties or platforms only need to access Lorenzo’s interface to deploy income products with one click, achieving full-process automation from asset custody to strategy execution to income distribution. This means that core assets such as BTC and stablecoins are being transformed by Lorenzo into composable on-chain financial primitives, providing plug-and-play income capabilities for platforms such as wallets, PayFi, and RWAFi.

Product design: building a complete financial circulation closed loop

Lorenzo has built a clear and sustainable asset circulation path: first, users or platforms deposit on-chain assets such as BTC and stablecoins into an account jointly managed with Lorenzo as the starting point of the funds. These assets are then allocated to a series of trading or profit strategies, which cover different profit targets and risk levels, such as stable income, risk hedging, dynamic rebalancing, etc.

Lorenzo’s Financial Abstraction Layer (FAL) standardizes these diversified strategies into modular Vaults - including Simple Vault and Composed Vault. The former is a single-strategy pool with clear structure and stable returns; the latter can aggregate multiple strategy pools, flexibly managed and rebalanced by institutions or AI, meeting more complex yield management needs.

Through the abstracted Vault model, these strategies are further encapsulated into tradable financial products OTF, each OTF represents a strategy combination with a specific income structure, which can be widely integrated into platforms and applications such as PayFi, wallets, RWA Fi, etc., truly realizing income reuse and value amplification.

In this process, users obtain a steady and stable income, the platform achieves one-click integration of income products, and the Lorenzo protocol completes the closed loop from asset input, strategy execution to income distribution, significantly improving capital flow efficiency and system reuse rate.

The entire system has built a complete path of ‘on-chain fundraising, off-chain execution, on-chain settlement’, combining the strategy execution efficiency of CeFi with the fund settlement transparency of DeFi, bridging the key gap between traditional financial logic and on-chain revenue infrastructure.

Through this systematic ability, Lorenzo is becoming the profit infrastructure that connects traditional financial products with on-chain financial ecology, promoting the comprehensive landing of real income in more mainstream scenarios.

From IDO to ecological co-construction: Lorenzo builds a growth flywheel of real income

On April 18, 2025, Lorenzo completed the IDO with PancakeSwap through Binance Wallet, issuing the governance token $BANK (total supply of 21 billion, initial circulation of 4.25 billion), with a TGE oversubscription of 18329%, becoming the focus of the market that month.

After this IDO, Lorenzo also officially completed the strategic upgrade from Bitcoin liquidity finance layer to institutional-level on-chain asset management platform. The focus of the new phase is to promote the tokenization and on-chain integration of CeFi financial products, and to build a sustainable and verifiable infrastructure for real income.

Around this positioning, Lorenzo has built a complete long-term value mechanism. The protocol’s income mainly comes from strategy aggregation, cross-chain bridge services, and ecological cooperation dividends, and continues to be used for repurchasing $BANK, thereby establishing a value support logic directly linked to the protocol’s growth. At the same time, Lorenzo will introduce the veBANK model, deeply integrating tokens with protocol governance, ecological incentives, ranking systems, and task mechanisms, further enhancing user stickiness and long-term participation motivation.

At the same time, Lorenzo also released the product roadmap in sync, and announced the first batch of deep cooperation partners around the new strategic direction. The first cooperative party is the full-stack RWAFi public chain Plume Network, marking a crucial step for Lorenzo in the landing promotion of real income scenarios.

Both parties will collaborate on core assets such as BTC and stablecoins, jointly promoting their application in the RWA scenario and exploring more sustainable on-chain revenue paths. Plume has currently attracted 180+ projects to join, laying a solid foundation for Lorenzo’s product integration and ecological cooperation.

Summary

Lorenzo fills the gap in on-chain asset management by tokenizing CeFi financial products and deeply integrating with the DeFi scene. Its universal financial abstraction layer unleashes the liquidity and yield potential of assets like BTC, providing secure, transparent, and efficient asset management solutions for institutions and high-net-worth individuals. From developing the “Bitcoin Liquidity Infrastructure Layer” to attracting market attention with the IDO launch, Lorenzo has not stopped its pace. On the journey towards the “Financial Abstraction Layer,” Lorenzo truly demonstrates its determination for long-term development and forward-looking vision.

It is worth mentioning that, as one of the leading stablecoin projects in this cycle, Ethena’s tokenized US dollar USDe market value has been soaring. The market size of tokenizing a single financial asset can reach billions of dollars. After supporting the tokenization of various financial products and fully integrating and utilizing them, Lorenzo may become a pioneer in on-chain asset management, leading the new wave of crypto finance.

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