BANK Token Explained: The Engine Behind Lorenzo Protocol
A clear breakdown of how BANK powers governance, staking, and institutional-grade on-chain asset management through OTFs.
BANK Token: Powering Lorenzo Protocol’s On-Chain Asset Management
BANK is the native utility and governance token of Lorenzo Protocol, an on-chain asset management platform focused on tokenized yield strategies and real-world assets (RWAs).
At its core, BANK enables governance. Holders can vote on protocol upgrades, fee structures, and the allocation of growth funds. By staking BANK into veBANK, users gain increased voting power, enhanced rewards, and access to protocol privileges.
BANK also plays a key role in economic incentives. Rewards distributed to active participants are funded by protocol revenue generated from On-Chain Traded Funds (OTFs) like USD1+, which package RWAs and DeFi strategies into liquid, tokenized products.
As more capital flows into Lorenzo’s OTF ecosystem, demand for BANK grows alongside governance participation—creating a feedback loop between usage and value.
Key insight: BANK isn’t just a governance token; it’s the coordination layer aligning users, capital, and long-term protocol growth.
#LorenzoProtocol @Lorenzo Protocol $BANK #Write2Earn
Educational token overview | Intermediate readers
Disclaimer: Not Financial Advice
