Lorenzo Protocol: The Performance Attribution Illusion That Hides Manager Skill
Traditional finance treats performance attribution as scientific truth, breaking returns into neat categories like sector allocation, security selection, and timing. But most of this analysis is narrative control, not objective measurement. Managers choose the benchmarks, the factors, and the timeframes—shaping the story to highlight skill and hide luck. Because investors only see returns, not the full decision history, managers can reinterpret outcomes however they want. A lucky sector overweight becomes “strategic positioning,” and accidental winners become “security selection alpha.”
Lorenzo Protocol removes this illusion completely. Every trade, position size, and rebalance is recorded on-chain, turning attribution into math rather than storytelling. A momentum vault’s returns come strictly from its signals—visible, verifiable, and impossible to manipulate. Composed vaults show exactly which strategies contributed to performance.
With full transparency, genuine skill becomes detectable much faster, and luck-driven managers lose their narrative shield. Capital flows to real edge, not good storytelling. On-chain attribution doesn’t just expose manipulation—it forces performance analysis to become what it should’ve always been: evidence-based.
