@Lorenzo Protocol offers several key facilities designed to bridge traditional finance with decentralized ecosystems:
On-Chain Traded Funds (OTFs): These tokenized products function like traditional ETFs, packaging diversified, multi-strategy portfolios into single, liquid on-chain tokens such as USD1+ or stBTC.
Financial Abstraction Layer (FAL): This is the backend system that coordinates custody, strategy selection (e.g., quantitative trading, real-world assets (RWA)), and capital routing automatically, removing operational complexities for the end-user.
Core Yield Layer (CYL) and Dynamic Yield Stabilizer (DYS): These internal mechanisms manage deposits, allocate assets to optimized strategies based on risk/return, and recalibrate allocations in real-time to ensure stable and predictable performance, effectively eliminating historical inefficiencies in DeFi.
Bitcoin Liquid Restaking: A significant facility is the ability for users to stake their Bitcoin and receive Liquid Restaking Tokens (LRTs), such as stBTC, allowing them to earn yield while maintaining asset liquidity for use across the broader DeFi ecosystem.
Governance and Staking: Holders of the $BANK coin can lock their tokens to create veBANK, which grants voting rights on crucial protocol parameters, fee structures, and future integrations, ensuring a decentralized and community-driven path for the protocol.
