Imagine if the investment tools used by top hedge funds were suddenly available to anyone with a crypto wallet. That’s essentially what Lorenzo Protocol is building. It takes the polished machinery of traditional asset management—structured products, quant strategies, futures exposure—and repackages them into transparent, on-chain vehicles so ordinary users can access opportunities once kept behind closed doors.
This transformation is powered by Lorenzo’s Financial Abstraction Layer, a kind of routing engine that moves capital from smart-contract vaults into real trading strategies, whether they live on-chain or in conventional markets. After the strategies run their course, the results are pushed back on-chain, where users see their OTF tokens reflect the performance they funded. These On-Chain Traded Funds behave like tokenized versions of mutual funds, letting users buy into them with a simple transaction.
Everything ties back to BANK, Lorenzo’s native token. BANK grants governance rights, unlocks special products, and links community participation to protocol success through revenue-sharing mechanisms. It’s designed as both the backbone of the ecosystem and a long-term utility asset.
Because Lorenzo sits on an EVM chain, it seamlessly plugs into the wider DeFi world. Its inclusion of real-world assets adds a dimension most protocols can’t offer: access to stable, diversified yields beyond crypto-native farming. The USD1+ fund is the first live example, blending returns from CeFi, DeFi, and traditional assets. More multi-asset strategies are coming, including Bitcoin-based funds.
Of course, innovation comes with friction. Hybrid execution means operational and regulatory challenges. Off-chain components require trust and strong infrastructure. But if Lorenzo can maintain transparency, performance, and compliance, it may become the go-to platform for investors seeking institutional-caliber strategies without institutional barriers.
