Lorenzo Protocol: Bringing Wall Street's Sharpest Alpha Directly on Chain
In 2025, the traditional asset management industry is undergoing a silent yet deadly revolution: the Lorenzo Protocol completely tokenizes top quantitative strategies that were previously only accessible to high-net-worth clients and institutions, allowing anyone to invest in On-Chain Traded Funds (OTF) starting from $100.
Currently, the platform has launched four types of core vaults: high-frequency market-neutral, global macro CTA, managed futures trend-following, volatility premium harvesting, and structured dual-coin yield products for Bitcoin. Each OTF is managed in real-time by licensed quantitative teams, with underlying strategies generally achieving an annualized Sharpe ratio exceeding 2.5 and a maximum drawdown controlled within 8%—these figures even leave many traditional hedge funds feeling embarrassed.
The core innovation of Lorenzo lies in the “composite vault + instant on-chain redemption.” Users only need to deposit USDT, BTC, or ETH into the corresponding vault to receive lp-OTF tokens representing their fund shares in real-time. These tokens can circulate on any AMM, lending protocols, or derivatives markets on-chain, with liquidity comparable to other blue-chip tokens. Traditional funds, which typically have redemption times of T+3 or even T+30, are compressed to seconds in Lorenzo.
$BANK serves as the protocol's native token, fulfilling three roles: first, governance rights, where veBANK holders decide on the launch of new strategies and fee distribution; second, incentive leverage, where staking BANK can yield an additional boost of 50%-80% on vault management fees; third, buyback, where 60% of the protocol's total revenue is used for market buybacks of BANK, entering a 12-month linear release treasury, forming a strong positive flywheel.
As top quantitative teams no longer need cumbersome KYC, private placement filings, and bank custodianship, they can directly issue products to global crypto users, causing the moat of traditional asset management to crumble overnight.
