Among other things, one thing that DeFi continues to grapple with is the illusion that yield and asset management are interchangeable.
They’re not.
#LorenzoProtocol #lorenzoprotocol $BANK @Lorenzo Protocol
Lorenzo Protocol is unique since it reintroduces something that crypto quietly lost on the way: structure. Lorenzo plans the strategies in the manner conventional finance always plans by purpose, risk profile, and position rather than dumping capital in obscure vaults that do a little of everything.
On-Chain Traded Funds (OTFs) is not an innovative concept as much as it is a concept of clarity.
You do not guess what your capital is subjected to. You are making a strategy choice and embracing its behavior. That in itself cuts down much bad decision-making in volatility.
The distinction between simple and composed vaults is another feature I like. The routing of capital is a bigger deal than many would imagine. Risk becomes invisible when it is all mixed. Risk is manageable when strategies are modular.
BANK and veBANK are appropriate to this philosophy. It is not connected to the rapid involvement but rather to time and commitment influence on governance. This is significant when you have asset management involved, not protocol tweaks.
Lorenzo does not feel like DeFi pursuing returns to me.
It seems that DeFi is learning how to utilize capital.
