Lorenzo Protocol is designed for users who want exposure to professional investment strategies without actively managing trades or relying on centralized fund managers. By introducing On-Chain Traded Funds (OTFs), Lorenzo converts well-known traditional fund structures into blockchain-native products that operate transparently through smart contracts. These OTFs allow users to participate in strategies such as quantitative trading, managed futures, volatility positioning, and structured yield, all within a decentralized environment where asset allocation and execution rules are visible and verifiable.
What makes Lorenzo distinctive is its capital flow logic, which routes user funds through a system of specialized vaults rather than locking them into a single static strategy. Each Simple Vault focuses on one investment approach, while Composed Vaults combine multiple strategies into a single product. This enables diversified exposure and adaptive allocation similar to institutional portfolio construction, but without the operational complexity typically associated with traditional asset management. Users benefit from structured diversification while maintaining full custody and on-chain transparency.
The protocol is governed by the $BANK token, which plays a central role in decision-making, incentives, and long-term alignment. Through the veBANK vote-escrow mechanism, participants who lock $BANK gain increased governance influence and access to enhanced incentives. This system encourages thoughtful participation and ensures that protocol evolution is guided by stakeholders committed to sustainable growth rather than short-term yield chasing.
As decentralized finance moves beyond basic lending and liquidity farming, Lorenzo Protocol positions itself as an infrastructure layer for strategy-based on-chain investing. By merging traditional financial discipline with decentralized execution, Lorenzo offers users a structured, transparent, and scalable way to engage with advanced investment strategies directly on-chain.
