Lorenzo Protocol Explained: On-Chain Funds in Simple Terms

A plain-English look at how Lorenzo turns professional investment strategies into transparent, on-chain products.

Lorenzo Protocol brings traditional fund-style investing onto the blockchain — in a simpler way.

In traditional finance, investors rely on banks or fund managers to access professional strategies. Lorenzo recreates this idea on-chain using On-Chain Traded Funds (OTFs). Instead of fund shares, users hold tokens that represent diversified strategies like DeFi yield, quant trading, structured products, and even real-world assets.

Each OTF pools multiple strategies into one product, offering transparency, faster settlement, and global access. Users can hold OTF tokens for yield, trade them, or redeem them back into underlying assets.

The BANK token governs the system. Long-term holders can lock BANK to gain voting power and influence how strategies, risks, and incentives are managed.

Key insight: Lorenzo isn’t chasing short-term yield. Its focus is structured, diversified products that aim to make professional investment tools accessible on-chain.

#LorenzoProtocol @Lorenzo Protocol $BANK #Write2Earn

Beginner-friendly protocol overview for Binance Square

Disclaimer: Not Financial Advice