Lorenzo Protocol is an on-chain asset management platform designed to bring traditional financial strategies into the blockchain ecosystem through tokenized products. Instead of focusing solely on lending or yield farming, Lorenzo approaches DeFi from a more TradFi-oriented perspective, emphasizing capital structures, systematic trading strategies, and structured asset allocation.
At the core of Lorenzo is the concept of On-chain Trading Funds (OTF). These are tokenized versions of traditional capital structures, enabling investors to gain exposure to a wide range of strategies directly on-chain. These strategies include quantitative trading, managed futures, volatility strategies, and structured yield products.
Operationally, Lorenzo relies on a set of simple yet well-organized vaults. These vaults are designed to route and allocate capital into specific strategies, allowing users to access sophisticated trading models without managing complex executions themselves.
The BANK token serves as the native token of the protocol. It is used for governance, incentive programs, and a vote-escrow mechanism (veBANK), where users lock tokens to gain voting power. This structure reflects Lorenzo’s long-term governance vision, prioritizing commitment over short-term speculation.
From an investment perspective, Lorenzo is positioned more as on-chain asset management infrastructure than a speculative DeFi play. Its strength lies in translating familiar TradFi logic into DeFi-native structures. However, challenges remain around product complexity and the ability to attract sustained capital in a market that remains cautious toward heavily financialized models.
Lorenzo is better suited for investors focused on structured yield, asset management, and long-term cycles rather than short-term narratives.
@Lorenzo Protocol #LorenzoProtocol $BANK
