When I traced @Lorenzo Protocol“vault → OTF” path, I got stuck on one question that felt dumb. Where does the trading even happen? On-chain? Off-chain? Both? The docs basically say: both, in a loop. Money comes in on-chain, the risky work can happen off-chain with clear rules, then the results come back on-chain for settle and share-out. It’s like a conveyor belt that leaves the factory for the messy part, then returns with a label you can check. That whole setup is what Lorenzo calls its Financial Abstraction Layer, or FAL. Fancy name. Simple idea. Fundraising on-chain, trade work off-chain, settle back on-chain, with NAV updates along the way. And OTFs… yeah, I also squinted at that. “On-chain Traded Fund” is Lorenzo’s way to wrap one or more plans into a single token you can hold. Kind of like an ETF vibe, but built so issuance, burn, and NAV tracking live in smart contracts. When the NAV moves, your claim moves. When you redeem, you exit through the fund’s rules, not vibes. Now zoom into the vaults, because that’s where most people actually touch the system. Vaults are the jars. You deposit assets, the jar mints you a receipt, and the jar follows the plan. NAV is just “what the jar is worth right now,” divided across all receipts. If the plan earns, NAV rises. If it takes a hit, NAV shows that too. No magic. Just accounting with code. On the BTC side, Lorenzo’s core story has been liquid staking. The cleanest example is stBTC. You stake BTC through Lorenzo’s flow tied to Babylon, and you get stBTC that stands for your staked BTC. “Liquid” here just means you still have a token you can move around, instead of your BTC being locked and silent. The Babylon link matters because Lorenzo positions stBTC as a token for BTC staked via Babylon’s staking setup. There’s also a second piece that makes people pause. Yield can show up as its own token, not just “more stBTC.” Lorenzo talks about Yield-Accruing Tokens, YATs. Think of it like this: your main token can stand for your principal, while a side token can stand for the yield that builds over time. It’s a neat split. It lets you trade or hold yield without selling the base. That split shows up in Lorenzo’s own product framing for BTC staking. And because users hate being trapped on one chain, Lorenzo has pushed cross-chain moves for its BTC tokens. Wormhole has been used to move enzoBTC and stBTC across chains like Ethereum, BNB, and Sui, which is just a fancy way to say: “bridge tech so the same BTC-like token can travel.” Then Lorenzo took a turn that made me go, wait… you’re doing this for stablecoins too? That’s where USD1+ OTF and sUSD1+ come in. The pitch is not “farm 12 things.” It’s “hold one token that tracks a mixed yield plan.” The plan blends three buckets: real-world assets like tokenized U.S. Treasury exposure, delta-neutral trading on big exchanges (that means trading in a way that tries not to care if price goes up or down), and on-chain lending or other DeFi yield. sUSD1+ is the part that trips people. It’s non-rebasing. In plain words, your token count does not auto-rise each day. Instead, the token price is meant to creep up as yield is earned, like a jar that slowly gets heavier even though the label count stays the same. Redemptions can run on a set cycle, not instant, because the plan may need time to unwind and settle back into the base unit. So where does BANK fit in? BANK is the control layer. It’s used for governance and for staking into veBANK, which is basically “vote power you earn by locking.” veBANK holders can vote on things like fees, rewards, and updates. Not thrilling. But it’s the boring stuff that decides if a system stays fair when it gets big. Lorenzo’s ecosystem is really two worlds sharing one spine: vaults that mint claim tokens, OTFs that package strategies into one holdable unit, and the FAL loop that pulls off-chain work back into on-chain proof. BANK sits on top like a rulebook you can vote on. And if you ever feel confused by the acronyms… good. That means you’re reading it like a human.

@Lorenzo Protocol $BANK #lorenzoprotocol