Lorenzo Protocol: A New Framework for On-chain Asset Management
$BANK @Lorenzo Protocol #lorenzoprotocol
Lorenzo Protocol does not pursue short-term gains, but aims to address the long-standing issue of asset management on-chain. Its core philosophy is: strategies should be packaged as products, not experiments.
Core Design:
Simple Vault: Each vault corresponds to a strategy, with clear rules for fund deployment, risk, and returns. Users holding vault tokens can earn strategy returns.
Composed Vault: Allocates funds to multiple simple vaults, achieving diversification and multi-strategy management, allowing users to avoid balancing themselves.
Financial Abstraction Layer: Unified handling of fundraising, strategy execution, accounting, net asset value calculation, and profit distribution, providing infrastructure for new products.
Assets and Strategies:
Supports various strategies including quantitative trading, trend following, volatility strategies, structured returns, delta-neutral strategies, and lending returns.
Bitcoin assets are converted into tokens that can be used on-chain (e.g., stBTC, enzoBTC), allowing for earnings while retaining core holdings.
Provides stable value products, structures returns, allowing users to avoid chasing different sources of income.
Risk and Governance:
Risk visualization, strategies may incur losses, but the structure makes risk transparent and controllable.
BANK Token: Used for governance, incentives, and long-term alignment.
veBANK: Locking BANK tokens to gain voting rights, long-term committers control governance and reward distribution.
Lorenzo Protocol aims to build a mature, transparent, and sustainable on-chain asset management infrastructure rather than pursue short-term gains. It makes strategies as clear and understandable as traditional financial products and lays the foundation for future on-chain financial development.
