@Lorenzo Protocol Lorenzo Protocol the quiet bridge between traditional finance and chain driven markets
Lorenzo Protocol sits in the space between the structured world of traditional finance and the open world of decentralized markets. It was built to bring the discipline and strategy of professional asset management into a transparent on chain system. Instead of treating DeFi as a place for experimental yields and short term models Lorenzo tries to build a true asset management layer. It uses tokenized financial products that act like fund shares but live entirely on chain where every allocation movement and performance change is visible in real time.
The heart of the protocol is the idea of On Chain Traded Funds. An OTF is a token that represents a complete investment strategy. This token behaves like a digital version of a traditional fund share. The difference is that the fund does not sit in a closed institution or behind a monthly report. It is expressed through smart contracts that define the strategy rules allocation logic fees and risk conditions. That means the structure of the fund does not rely on trust. Anyone can see how the fund works by reading the on chain logic and tracking performance through transparent data rather than waiting for a report written by a fund manager.
Lorenzo did not start as a simple yield product. It was designed as a full asset management platform. It uses vaults to organize capital and route it into financial strategies. A vault is a contract that holds deposits and uses defined models to deploy those assets. There are two types of vaults in the system. A simple vault focuses on one strategy. It may run a single quantitative model that trades futures and seeks to extract market neutral returns. It may that version
