Lorenzo Protocol approaches decentralized asset management by separating strategy logic from user interaction. Rather than requiring participants to manage individual positions, the protocol introduces On-Chain Traded Funds (OTFs) that represent defined investment strategies executed transparently on-chain.
This abstraction simplifies participation. Users gain exposure to structured strategies while the underlying execution follows predefined rules. Capital allocation, rebalancing, and yield sources are handled at the system level, reducing operational complexity for participants.
OTFs also improve capital efficiency by aggregating liquidity under unified logic. Instead of fragmented positions across multiple protocols, strategies operate as coherent units. This design supports consistency across varying market conditions and reduces reliance on reactive behavior.
Governance plays a supporting role by shaping how strategies evolve over time. Through structured decision-making, Lorenzo ensures that strategy adjustments remain aligned with long-term objectives rather than short-term incentives. The result is a system where exposure is deliberate and execution remains transparent.
