@Lorenzo Protocol Lorenzo Protocol is redefining digital asset management by bringing institutional-grade financial strategies on-chain through its innovative On-Chain Traded Funds (OTFs). Built for a multichain world, Lorenzo seamlessly connects liquidity, strategies, and users across EVM, Cosmos, and Solana positioning itself as a foundational layer for decentralized portfolio construction.
Cross-Chain Liquidity & Interoperability
At the heart of Lorenzo’s architecture is its ability to operate fluidly across blockchains. By supporting EVM networks, Cosmos zones, and Solana’s high-performance runtime, the protocol ensures deep interoperability that allows capital to move with minimal friction. This cross-chain routing empowers OTFs to access yield opportunities in diverse ecosystems, while giving users institution-style exposure through a unified interface.
The result is a liquidity fabric where strategies from quantitative arbitrage to managed futures and volatility harvesting can be executed wherever conditions are most favorable, without siloed barriers.
Financial-Grade Infrastructure
Lorenzo’s dual-layer vault system organizes capital into simple and composed vaults, enabling sophisticated structuring reminiscent of traditional asset managers. Automated strategy allocation, risk-segmented vaults, and verifiable on-chain execution ensure the transparency and operational rigor expected from a financial-grade platform.
OTFs bring the familiarity of fund structures into a tokenized, programmable format allowing 24/7 liquidity, composability with DeFi protocols, and globally accessible, permissionless investment strategies.
Economic Model: Weekly Burns, Scarcity & Staking
The BANK token is central to Lorenzo’s economic flywheel. Its design aims to reward long-term alignment, ensure value accrual, and reinforce the protocol’s deflationary mechanics:
Weekly Burns: A portion of fees generated from OTF products and vault strategies is periodically used to buy and burn BANK. This systematic deflation reduces circulating supply over time.
Engineered Scarcity: As adoption grows and OTF volumes scale, the burn mechanism increases in magnitude tightening supply and promoting a scarcity-driven value model.
Staking & veBANK: Users can lock BANK into the vote-escrow system (veBANK) to participate in governance, boost rewards, and earn a greater share of protocol incentives. The longer the lock, the stronger the voting weight and staking multiplier, aligning participants with the protocol’s long-term growth.
This economic structure mirrors proven DeFi tokenomics while adding disciplined, fund-based revenue flows from real strategy performance.
Synergy Across Diverse DeFi Applications
Lorenzo’s multichain design allows its OTFs and vaults to integrate directly with lending markets, derivatives platforms, liquidity layers, and yield optimizers. Each connection compounds the utility of OTFs enabling composable structured products, collateralized strategy tokens, and automated portfolio pipelines that span the DeFi landscape.
By merging institutional strategy design, interoperable infrastructure, and a deflationary token economy, Lorenzo Protocol stands at the forefront of on-chain asset management. It serves not only as a product suite but as a financial backbone for the emerging multichain investment ecosystem scalable, transparent, and built for global adoption.
