Within the crypto scene, most endeavors tend to scale because they make noise. A lot of hype and updates are usually perceived as indicators of success. #LorenzoProtocol does the exact opposite. They opt to create something that is sound and understandable. It is precisely this that Lorenzo does that brings about the new form that on-chain asset management will take.
Traditional asset management practices require patience. Portfolio strategies don’t change from one week to another, nor do they handle risks in an ad-hoc manner. Lorenzo applies this approach to its blockchain system too. It doesn’t focus on providing sophisticated solutions that can solve or handle problems that can be understood only by professionals of asset management. Lorenzo provides familiar structures that can be easily understood by anyone who has general knowledge of finance.
Discipline is one of the biggest innovations that Lorenzo brings to the table. Lopez describes that many cryptocurrencies use completely automated systems, where code responds immediately to the movements in the market. This seems efficient, but it creates a situation of panic sell-offs when there is a dramatic amount of volatility in the marketplace. This is a system that mixes automation with control, where the code is created with set limits that ensure that decisions are not made rashly.
Another major change is transparency. In traditional finance, it can take several months before investors even know how their money is being allocated. With Lorenzo, all activity takes place on-chain. Positions, strategy rules, and performance can all be viewed in real-time.
However, Lorenzo also redefines access. Asset management on a chain is either not suitable for conservatively minded people or simply too limiting for mainstream use. However, balance is achieved. Access is extended to more users while being mindful of risk management. People are not urged to take risks. They can take part if they feel like it.
What sets Lorenzo apart is the attitude that it holds towards progress. It does not regard the occurrences in the market as a competition. It understands that fantastic systems require some time to evolve. This results in people with a differing kind of mentality using this platform. "The gradual evolution of Lorenzo Protocol demonstrates that the future of on-chain asset management will not resemble a casino. The future of finance will resemble a properly operated financial institution, but with the transparency of blockchain technology and the accessibility of the world." Finance does not have to be loud and boisterous to have any real potency or moment in modern society. Sometimes, the most significant movements will make little noise, but Lorenzo believes silence can speak louder than words ever could.
@Lorenzo Protocol #LorenzoProtocol $BANK
