Lorenzo Financial Abstraction Layer (FAL): Modular Vaults for CeFi and On-Chain Capital Allocation

The Lorenzo Financial Abstraction Layer (FAL) is designed to abstract complex trading operations into composable, programmable building blocks. At its core, FAL introduces a flexible vault architecture that enables both single-strategy execution and professionally managed portfolio structures, bridging CeFi performance with on-chain accessibility.

Two Vault Types, One Unified Framework

@Lorenzo Protocol  FAL supports two primary vault types, each serving a distinct role in capital deployment and management.

1. Simple Vaults: Single-Strategy Yield Execution

A Simple Vault is the foundational unit within FAL. It represents a single, isolated trading or yield strategy, typically operated off-chain.

Key characteristics: manages one specific yield or trading strategy, executes independently without exposure to other strategies, provides clear, strategy-level performance and risk attribution.

Simple vaults allow strategy operators to plug directly into Lorenzo’s infrastructure while users gain transparent access to returns without interacting with centralized exchanges themselves. #LorenzoProtocol

2. Composed Vaults (Funds): Portfolio-Level Capital Management

A Composed Vault, also referred to as a Fund, aggregates multiple simple vaults into a single portfolio structure.

In this model capital is allocated across multiple simple vaults, rebalancing is performed by a delegated fund manager.  Users gain exposure to diversified strategies through a single vault $BANK

Composed vaults enable sophisticated portfolio construction, risk management, and capital rotation while maintaining modularity at the strategy level.

Lorenzo’s Financial Abstraction Layer transforms CeFi trading strategies into transparent, programmable financial primitives—unlocking professional-grade yield strategies for on-chain users without sacrificing security or control. $BANK