Lorenzo Protocol: Bridging Traditional Asset Management with DeFi
@Lorenzo Protocol Protocol is building a bridge between conventional finance and decentralized markets. Instead of treating DeFi as a scattered set of yield opportunities, Lorenzo structures capital into tokenized, fund-like products that mimic the discipline of traditional investment vehicles. At the core of this system are On-Chain Traded Funds (OTFs)—programmable tokens that package diverse trading strategies, allowing users to access risk-managed portfolios without actively managing positions themselves.
The protocol organizes liquidity through intuitive vault structures. Simple vaults allocate funds into a single, defined strategy, while combined vaults blend multiple approaches. Strategies can range from quantitative trading and managed futures to volatility hedges and structured yield products—all fully on-chain, trackable, and transferable. This means investors can gain exposure to diversified strategies through a single token, eliminating the complexity of juggling multiple protocols or positions.
The BANK token serves as the backbone of Lorenzo’s ecosystem. It enables governance, fuels incentive programs, and powers the vote-escrow mechanism (veBANK), where longer token locks grant greater influence and rewards. Together, OTFs, vaults, and BANK create a structured, on-chain asset management layer, inspired by the risk management, discipline, and efficiency of traditional finance.
Lorenzo Protocol is not just about DeFi—it’s about creating a professional, organized, and scalable approach to capital deployment on-chain.
