$BANK is the coordination piece of Lorenzo's on-chain asset management system. It functions less like a basic token and more like the operating system that keeps various strategies, vaults, and stakeholders in sync. In traditional finance, fund structures use boards, mandates, and legal contracts to coordinate actions. On-chain, BANK simplifies many of these tasks into programmable incentives and governance that operate at protocol speed.
Essentially, BANK helps decide how capital moves and how risk is distributed among different On-Chain Traded Funds and strategies. Holders who stake veBANK gain lasting control over this flow. They can direct emissions, fee distribution, and strategy allocations towards products they see as viable and profitable. This makes capital allocation a clear, predictable process, rather than a secret operation run by a few people.
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Since BANK is built into the coordination layer, it can ensure accountability. Strategies that perform poorly or are out of sync can have their incentives decreased. Conversely, strategies that stick to risk limits, generate steady returns, or grow the protocol's user base can be rewarded. In practice, BANK acts as a feedback system that continuously adjusts power and rewards between funds, managers, and depositors.
Over time, this makes Lorenzo feel more like a unified asset management network than a collection of separate products. BANK connects the ecosystem: aligning incentives, matching governance with long-term value, and giving users a direct way to influence the protocol's development. To understand BANK is to understand how coordination, not just code, will decide who builds successful institutional-grade on-chain finance.
