@Lorenzo Protocol is an asset management platform that brings traditional finance strategies to the blockchain. It features investment products in the form of tokens, enabling users to participate in different strategies on-chain.
This protocol has On-Chain Traded Funds (OTFs), which operate like traditional funds but function entirely on the blockchain. Each OTF represents one or more strategies, allowing users to gain exposure through a single token.
Lorenzo uses simple and composed vaults. These vaults route users' deposited funds into various strategies, such as quantitative trading, managed futures, volatility-based strategies, and structured yield products. The entire process occurs through smart contracts.
BANK is the native token of this protocol. It is used for governance, serves as incentives, and can be locked to participate in the vote-escrow system (veBANK). This way, token holders can take part in the protocol's decisions.
Overall, the simple idea of the Lorenzo Protocol is to bring traditional investment strategies into a tokenized form on-chain, so that users can invest in these strategies without complex management.
