Since December 2023, I have been calling for attention to the BTC ecosystem. This original intention will never change, especially after I investigated Merlin again last month, Merlin rose 50% in a week, indicating that capital is constantly testing the environment. This makes me more certain that the market will repeat itself, and the BTCFi ecosystem will definitely have a hair of dozens or hundreds of times, just like Matic from Ethereum.
Recently, the BTC market has been testing around 60,000. The market seems to have come out of the ups and downs in August. Therefore, various projects in the BTCFi ecosystem have made efforts again, and the situation is very good.
Recently, I saw @BSquaredNetwork, @LorenzoProtocol, @avalonfinance_ and @Pell_Network jointly launch a 3-month gold miner activity on BNB Chain. I feel that in the next 3-6 months, the BTCFi ecosystem will be centralized with Babylon to issue tokens at the same time, completely detonating the BTCFi concept.
We are already very familiar with B² Network. Today we will find out what Lorenzo is and how Gold Miner can achieve six goals at a low cost. This article is mainly divided into the following aspects:
Lorenzo in-depth analysis
How to participate in Gold Miner and achieve six benefits from one fish
1. Lorenzo Popular Analysis
Lorenzo Protocol held many airdrop activities from April to June, and I believe that those who have participated in the airdrop will be familiar with it.
There are at most 150,000 people in the Chinese Web3 community, and not everyone can understand profound technical analysis articles. So today we will use a popular method to interpret the Lorenzo Protocol, so that at least we know whether it is necessary to participate in Gold Miner.
1. Web3 Pain Points — Liquidity Solutions
Official statement:
Lorenzo Protocol is a Bitcoin liquidity aggregator that uses its global network to support Bitcoin financial products and yield tokens, including creation, issuance, trading and settlement. Through its novel Bitcoin liquidity financing layer, Lorenzo provides liquidity to market makers, trading venues and other liquidity providers.
The liquidity ecosystem composed of providers provides immediate demand. As a pioneer in Bitcoin liquidity staking, Lorenzo introduced a dual Bitcoin staking deposit tokenization system by establishing the Liquidity Principal Token (LPT) and Yield Accumulation Token (YAT) token standards.
Is it like reading a book from heaven? Translated into human language, it is:
DeFi has always been the most profitable sector on Ethereum. It has experienced several rounds of DeFi Summer, but it still entered a vicious circle of insufficient liquidity. Especially after the Cancun upgrade, the phenomenon of insufficient liquidity became more obvious. Although the later LSD and LRT alleviated the liquidity problem to a certain extent, it did not last long.
BTC L2 builders learned from Ethereum’s lessons and have been trying to design better liquidity solutions when designing BTCFi. After all, in any financial market, liquidity is the barometer that determines market prosperity. Lorenzo Protocol is a liquidity solution concept designed in such an environment.
2. Basic Concepts of Lorenzo Protocol
The popularity of Babylon at least shows one thing: enabling the Bitcoin network and community to participate in the PoS security model without changing its underlying proof-of-work (PoW) is currently feasible.
As the Bitcoin liquidity financial layer, Lorenzo Protocol is the premier Bitcoin liquidity aggregator, leveraging its global network to provide support for the creation, issuance, trading and settlement of Bitcoin financial products and yield tokens. Through its novel Bitcoin liquidity financing layer, Lorenzo provides instant demand through a liquidity ecosystem consisting of market makers, trading venues and other liquidity providers.
Lorenzo has set his sights on re-staking based on BTC staking achieved by Babylon. The combination of Lorenzo and Babylon is similar to the EigenLayer in ETH.
Lorenzo is not the only project doing BTC re-staking (LRT). Other representative projects include Bedrock, pSTAKE Finance, Swell Network, UTXO Stack, PumpBTC, Nomic, Lombard, Chakra, Solv Protocol, Acre...
Different from the locked asset pledge method, Lorenzo has created a flexible pledge model by separating the principal and income of Bitcoin pledge. Users can obtain Liquid Principal Token (LPT) and Yield Accruing Token (YAT) through the Lorenzo platform. Seeing this model, many people like to call Lorenzo the Pendle on BTC.
Are you feeling like reading a book of mystery after reading this? As a project incubated by Binance, Lorenzo has sister projects to refer to, such as Transchess, which also allows the interest-bearing tokens to be split into income tokens and principal tokens.
https://x.com/JiamigouCn/status/1835674966349824013
Combining the Pendle and Tranchess models, we know that as a Lorenzo user, if you stake BTC on Lorenzo, you will get the liquidity principal token stBTC at a 1:1 ratio. The income generated by the pledge will be accumulated in the form of YAT tokens, and users can withdraw the principal and income separately after the pledge cycle. This design of Lorenzo allows users to not only obtain the staking income of the Babylon protocol, but also trade these tokens on the secondary market, thereby obtaining more income opportunities.
3. How does Lorenzo activate BTCFi liquidity?
After users pledge their assets on Lorenzo, Lorenzo can provide BTC (that is, liquidity) to projects that require BTC pledge. At the same time, BTC holders can also find good profit opportunities by matching with projects that need Bitcoin liquidity.
This is why Lorenzo Protocol officially calls itself a Bitcoin liquidity aggregator, using its global network to provide support for Bitcoin financial products and yield tokens, including creation, issuance, trading and settlement.
The architecture of the Lorenzo protocol
Does this look familiar to you? Is it StakeStone?
StakeStone was created in March when the LST and LRT tracks were being scrambled for thousands of rollups. As liquidity providers, everyone was exhausted from rushing to stake one or the other. After Manta, all application layer and consensus layer mines in the market can be staked with Stone.
References:
https://link.medium.com/UZDfC2H0zNb
Lorenzo Protocol was also created in the current environment of BTCFi's tens of thousands of Rollups. If the first phase of Lorenzo Protocol is completed, we only need to use Lorenzo to charge BTCFi in the later stage. It will help you match the project parties that need BTC liquidity and provide multiple income channels for BTC holders. Therefore, Lorenzo Protocol is more like a combination of Bitcoin's Lido, Renzo and Pendle.
4. Lorenzo Protocol Background
Lorenzo Protocol completed a round of financing on October 4, 2022, with Binance Labs participating in the investment, but the specific amount was not disclosed.
Lorenzo also performed well in the first phase of staking on the Babylon mainnet, staking 129.36 bitcoins, accounting for 12.94%.
2. How to participate in Gold Miner and achieve six benefits from one fish
Gold Miner is a 3-month airdrop event jointly launched by B² Network, Lorenzo and Pell on BNB Chain. In addition to the 30% compound annual interest rate and regular token or point rewards for staking BTC, you can also complete basic tasks to get cash lottery tickets, share 1 BNB every week, and share 1 BTC in 3 months.
The specific rewards are as follows:
420,000 Pell Option Tokens + 1.5X Pell Points
8% effective yield Lorenzo tokens
3% effective yield on B² tokens
Estimated Babylon bonus is 20%
Ticket draw can get up to 1 BTCB+11 BNB reward
Staking limit: 2000 BTC
Event time: October 4
Duration: 3 months
Airdrop Interactive Tutorial
First register for the event
Enter the official website: https://app.pell.network/points?code=UMFJ5B
Link Wallet
Click Gold Miner to enter the activity page
Task 1: Bridge BTC to B2
Scroll down and find the task "Bridge BTC to B2"
Click To Complete
Transfer at least 0.0001BTC to B2 (about 6U, it is recommended to transfer more at one time to facilitate the subsequent Odyssey tasks)
After the wallet confirms, this step is completed. Since it is an on-chain task, the tickets will be automatically issued.
Step 2: Stake at least 0.0001 stBTC on the Bsquare network
Find the task “Stake to mint at least 0.0001 stBTC on Bsquare Network”
Click To Complete
Go to the Lorenzo staking page
Select B2 network (there are BTC on other chains, you can also use other networks)
Enter amount
Click Stake and the wallet confirms
You get 2 tickets here.
You can complete the remaining tasks if you have sufficient funds. You will receive a ticket for each completed transaction, which can be used to participate in the weekly cash draw.
The above is all the content for today. Four projects jointly carried out airdrop activities, which basically means that at least two projects will issue airdrops in the fourth quarter. This time Odyssey will seize the time to do it, with 10U/number of interactive funds per day. The more tickets you get, the greater the probability of weekly cash draws.
#LorenzoProtocol
#BTCF
#Babylon
In addition to tickets available for Odyssey, you can also get tickets by participating in Galxe:
https://app.galxe.com/quest/aBom7oJdwWBaWE93dKJwrf/GCUVmtKHUZ
Each project can be operated with multiple accounts. The multi-account tool I currently use is the MorLogin fingerprint browser. I have been using it for almost a year and there is no problem with its security.
You can use the cloud phone function. New users can register using the following link to get 50 free environments:
https://www.morelogin.com/?from=AANvwSB8onX4
The airdrop multi-opening tutorial is as follows:
https://link.medium.com/23MLcLY0zNb
