#lorenzoprotocol $BANK From CeFi to On-Chain: How the Lorenzo Protocol Turns 'Professional Strategies' into Composable DeFi Assets?
In the traditional financial world, hedge funds and quantitative strategies are games for the few. What @Lorenzo Protocol is doing is 'deconstructing' and 'reconstructing' these professional strategies through blockchain, turning them into on-chain assets that are accessible and composable for everyone—OTF.
This is not just another yield farm, but a profound attempt at investment democratization.
🔗 Core Innovation: OTF (On-Chain Trading Fund)
Lorenzo did not invent new strategies, but rather a new format for encapsulating strategies. It packages complex quantitative trading, managed futures, and other strategies into standardized fund tokens (OTF) that can be freely traded on-chain. This brings about fundamental changes:
• Transparency: The holdings, performance, and fees of the strategies are all verifiable on-chain, bidding farewell to the black box.
• Composability: OTF tokens can be easily embedded into more complex DeFi strategies like any other ERC-20 token, becoming new 'financial Lego' blocks.
• Liquidity: Fund shares can now be traded 24/7 on DEX, solving the long redemption cycles of traditional funds.
🏦 $BANK and veBANK: The Flywheel of Governance and Loyalty
The native token of the protocol, $BANK , is the governance and economic core driving all of this. Holders can obtain veBANK by locking their tokens, which allows them to:
1. Governance Rights: Vote to decide which strategies can be listed, guiding the direction of the protocol's development.
2. Revenue Rights: Share in a portion of the revenue generated by the protocol.
This model deeply ties the success of the protocol to the interests of long-term holders, aiming to build a robust community governance flywheel.
💡 Outlook and Challenges
Lorenzo's vision is to become an on-chain 'strategy supermarket'. The key to its success lies in: Can it continuously attract outstanding top-performing strategies? Can its risk control and liquidation mechanisms withstand extreme market tests? If these are validated, it will become a key bridge connecting traditional quantitative elites with the capital of the crypto masses.
Do you believe in the track of 'tokenizing professional strategies'? Will it be the ignition point for the next DeFi Summer?
