#lorenzoprotocol @Lorenzo Protocol
$BANK
Lorenzo Protocol is an asset management platform that brings traditional financial strategies on-chain through tokenized products.
The protocol supports On-Chain Traded Funds (OTFs), which are tokenized versions of traditional fund structures, offering exposure to different trading strategies.
Lorenzo uses simple and composed vaults to organize and route capital into strategies such as quantitative trading, managed futures, volatility strategies, and structured yield products.
BANK is the protocol’s native token, used for governance, incentive programs, and participation in the vote-escrow system (veBANK).
Strategies such as quant trading or volatility-based portfolios typically require specialized tools, data, and ongoing management. Lorenzo streamlines this process through its Financial Abstraction Layer, which manages capital allocation, runs strategies, tracks performance, and distributes yield on behalf of applications and users.
This design enables wallets, payment apps, and real-world asset (RWA) platforms to offer yield-focused features in a standardized way, while providing you with direct access to diversified financial strategies on-chain.
Lorenzo manages user deposits through vaults, which are smart contracts designed to hold assets and allocate them to specific financial strategies. When you deposit supported assets into a vault, the contract issues liquidity pool (LP) tokens that reflect your share of the underlying strategy.
Allocation is then handled by the Financial Abstraction Layer (FAL), Lorenzo’s backend system for coordinating custody, strategy selection, and capital routing. Depending on the vault’s configuration, your funds can be allocated to a single strategy or distributed across multiple portfolios that follow predefined allocation targets and risk guidelines.
Once capital is routed, yield generation is carried out through off-chain trading strategies, which are operated by approved managers or automated systems. These teams may run activities such as arbitrage, market-making, or volatility-based strategies using custody wallets and exchange sub-accounts with controlled permissions.
As strategies produce results, performance data is periodically reported on-chain. Smart contracts update the vault’s net asset value (NAV), portfolio composition, and your individual returns, offering transparent and verifiable insight into how the strategy is performing.
Lorenzo introduces multiple OTF options that package underlying strategy portfolios into on-chain tokens, which can be held, traded,
Lorenzo provides an on-chain framework for accessing structured yield strategies through a clear and transparent system. By combining vaults, the Financial Abstraction Layer, and OTF products, you can engage with staking, quantitative trading, and multi-strategy portfolios without managing the underlying infrastructure. Through products like stBTC, enzoBTC, sUSD1+, and BNB+, the protocol enables different forms of yield exposure while preserving liquidity and on-chain transparency.
