As an investor who has navigated both traditional finance and the crypto market for many years, I have always been troubled by a contradiction: the low-risk strategies in traditional finance (such as government bonds and quantitative funds) have high thresholds and poor liquidity, while the DeFi ecosystem, though flexible, lacks a robust asset anchoring. It wasn’t until I encountered the Lorenzo Protocol (BANK) that I found a solution—this asset management platform that brings traditional financial strategies on-chain is reconstructing the underlying logic of wealth allocation using tokenization technology.
Lorenzo's core innovation lies in On-Chain Traded Funds (OTF), which are essentially on-chain versions of traditional funds. Unlike traditional funds that often require a minimum investment of millions, Lorenzo's OTF products support starting investments from as low as 1 dollar, allowing ordinary investors to participate in strategies that were originally exclusive to institutions. The flagship product I initially tried, USD1+, integrates U.S. government bonds (annualized 4.8%), stETH re-staking (3.2%), and options strategies (1.5%), achieving a comprehensive APY of 9.5%, and all underlying assets are traceable on-chain, completely addressing the issue of information opacity in traditional funds.
The compositional fund vault is another major highlight of Lorenzo. The platform intelligently allocates funds to multiple tracks such as quantitative trading, managed futures, and volatility strategies. By adjusting the allocation ratios of different vaults, I have locked in basic returns with structured yield products while capturing market volatility opportunities through quantitative strategies. More importantly, these vaults support cross-chain deployment, allowing my assets to flow freely across more than 20 public chains, including Ethereum, BNB chain, and Sui, with gas fees 68% lower than similar products and liquidity completely unrestricted.
The BANK token, as the core of the ecosystem, has a value support that far exceeds that of ordinary governance tokens. Holding BANK not only allows participation in protocol rule voting (such as OTF product adjustments and strategy parameter optimization), but the veBANK generated after staking can also enhance yield multiples, reaching up to 2.5 times. After staking part of my BANK long-term, the dividend ratio of USD1+ significantly increased, and I also gained eligibility for ecological airdrops—8% of the platform's tokens will be used for community airdrops, and the team's and investors' tokens are locked for up to 48 months, greatly reducing the risk of sell pressure.
In the current environment of increasing volatility in the cryptocurrency market, Lorenzo's 'traditional finance strategy + on-chain technology' model offers a rare robust option. It retains the efficiency and low barriers of DeFi while adopting mature strategies from traditional finance, and this complementarity enabled it to achieve $600 million in locked funds shortly after launch. For me, Lorenzo is not just an investment platform but also a tool for redefining asset allocation, while the BANK token serves as an ecological passport whose long-term value will continue to be released with the influx of more traditional funds.
