Today, let's change the angle and talk about something a little hardcore - even if you don't study finance, this doorway is worth pondering, because it is related to why professional players are paying attention to this track.

There is a classic operation in the traditional bond market, and Wall Street played a thief in the 80s, called "separation of interest and capital". Plainly? It is to split a treasury bond into two separate transactions: the principal is the principal, and the interest is interest.

Why play like this? The needs are different. Pension funds and insurance companies are stable institutions, focusing on the safety of the principal and are not cold to fluctuations at all; On the other hand, what about those hedge funds, people like high leverage and high volatility, and they specialize in interest to eat, principal? It is best not to occupy a position. The tens of trillions of dollars in bond markets operate on this logic.

Now the point is that the great thing about Lorenzo Protocol is not how fancy the technology is, but that it directly moves this set of financial engineering that has been tested by the market for decades directly into the Bitcoin ecosystem.

When you stake Bitcoin on Lorenzo, it gives you two things: stBTC and YAT. These two things essentially turn Bitcoin into a "dismantling digital bond".

stBTC (liquid principal token) is the "zero-coupon bond" in the traditional market - it represents your ownership of the underlying Bitcoin principal. The logic is very hard: if the underlying assets are there, this thing is valuable.