@Lorenzo Protocol #LorenzoProtocol $BANK
Lorenzo Protocol can be understood as a connectivity hub that sits between centralized exchanges, real world asset venues and on chain liquidity. Instead of asking users to choose one venue at a time, Lorenzo collects capital into on chain vaults and routes that capital through different markets according to a defined mandate. The result is not a single farm, it is a portfolio line that combines spot, derivatives and yield sources behind one token on chain. In a market where liquidity is scattered across many platforms, this role of connectivity becomes a strategic position rather than a side feature.
How Lorenzo links CeFi liquidity and on chain ownership.
Most serious strategies still rely on deep order books and derivatives listed on large exchanges. At the same time, the safest and most transparent way to track ownership is through tokens on chain. Lorenzo designs its architecture exactly around this tension. Assets enter a Lorenzo vault on chain, are represented in a token, and then the abstraction layer of the protocol connects to exchange venues and real world asset partners to execute the strategy. Performance, positions and fees are reported back into the vault and reflected in the token value. In this way, Lorenzo lets capital enjoy exchange grade liquidity while the portfolio itself lives as a transparent asset on a public network.
On chain traded funds as standard tickets for strategies.
Lorenzo packages each strategy into what it calls an on chain traded fund. This is a token that represents a specific portfolio recipe, for example a conservative dollar profile focused on short duration yield and mild basis trades, or a bitcoin line that mixes long spot exposure with neutral futures structures. Once created, an on chain traded fund behaves like a standard ticket that can be held in wallets, used as collateral, or listed on secondary markets. This is where the project becomes central, because it turns the expertise of strategy designers into objects the entire ecosystem can reuse, instead of leaving every fund or treasury to rebuild the same logic in private.
How treasuries and quant funds can use Lorenzo.
A protocol treasury that collects both stablecoins and volatile assets can use Lorenzo as the first layer of its treasury policy. Dollar reserves move into a Lorenzo fund that aims for stable yield and capital protection, while bitcoin holdings go into a fund that targets carry and volatility aware growth. The treasury team then manages allocation between these funds and any extra positions, rather than running raw trades themselves. Quant funds can do something similar at a different scale, they can use Lorenzo funds as neutral legs, for example, holding a neutral dollar line while deploying custom options or directional trades around it. In both cases, the project itself sits at the center of the stack, because the vaults and funds define the baseline behaviour of capital.
Role of BANK and veBANK in steering this connectivity.
BANK is the native token that represents exposure to the Lorenzo ecosystem, while locked BANK becomes veBANK which carries longer term governance power. Holders of veBANK decide which on chain traded funds receive more protocol rewards and a larger share of fees. If governance notices that demand for cross exchange neutral strategies is strong, it can direct more support to those products, deepening their liquidity and improving their role as standard tickets. If market conditions favour conservative profiles, veBANK votes can shift rewards toward capital preservation funds. This keeps the protocol aligned with the parts of the connectivity network that really matter at each stage of the cycle. Governance is not an add on, it is how Lorenzo decides which links between CeFi and DeFi deserve the most bandwidth.
Why this design matters for the next phase of crypto.
As the market matures, capital will care less about individual pools and more about how whole portfolios behave across different venues and chains. Exchanges will continue to dominate liquidity, while chains will continue to dominate custody and settlement. The missing piece is a project that can sit between them, understand both sides and express that understanding through simple investable lines. That is the niche Lorenzo is aiming to own. If it can keep its vaults safe, its abstraction layer reliable and its strategy library credible, on chain traded funds from Lorenzo can become standard components in balance sheets. In that scenario, the question for many institutions will not be whether to use the protocol, but which Lorenzo funds should sit at the core of their allocation to crypto strategies.
