How Lorenzo Protocol Uses Community Governance to Manage On-Chain Assets
An educational breakdown of how BANK token holders influence investment strategies, risk parameters, and capital allocation through Lorenzo Protocol’s governance model.
Lorenzo Protocol applies a community-led governance model to on-chain asset management, blending DAO decision-making with structured financial strategies.
At the center is the BANK token. Users who lock BANK receive veBANK, which grants voting power on key protocol decisions. These include approving new investment strategies, adjusting vault parameters, and defining risk controls such as drawdown limits and rebalancing rules.
Rather than relying on a centralized manager, Lorenzo allows its community to guide how capital is deployed across vaults and On-Chain Traded Funds (OTFs). This approach aligns long-term token holders with protocol performance and risk discipline.
Insight: Governance in DeFi isn’t just about voting — it’s about shaping how capital behaves on-chain.
#LorenzoProtocol @Lorenzo Protocol $BANK #Write2Earn
Educational content · Governance · Asset Management
Disclaimer: Not Financial Advice
