About Lorenzo Protocol, an underestimated detail
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Many people first learn about @LorenzoProtocol,
tend to focus only on the yield structure or token model, but I think what is truly interesting is how risks and incentives are separated and reorganized.
In the current on-chain financial environment, the biggest challenge for stable yield protocols has never been just the APY, but how risks are reasonably undertaken at different market stages. Lorenzo Protocol attempts to address this through a modular design, layering users' risk preferences to allow different types of participants to meet their needs, rather than exposing everyone to the same set of risk exposures.
This type of design may not seem "sexy" when the market is stable, but once market volatility increases, its value tends to become more apparent. Especially in the context of larger amounts of capital gradually entering the chain, protocols with clear structures and coherent logic often have greater long-term viability.
From this perspective, $BANK is not just an incentive tool, but more like a part of the entire system's operation, with its performance ultimately returning to whether the protocol itself truly addresses the problem.
Such infrastructure projects are worth taking the time to understand, rather than just jumping to conclusions.
