$BANK is the native token of the Lorenzo protocol, with a total supply of 2.1 billion tokens. It’s issued on the BNB Smart Chain (BSC) and can be locked to create veBANK, which activates additional utilities across the ecosystem. Bank has multiple use cases:
Staking: Users can stake BANK to access certain privileges on the protocol, including voting rights, feature access, and the ability to influence incentive gauges.
Governance: BANK serves as the protocol’s governance token. Holders can vote on proposals related to product updates, fee adjustments, use of ecosystem growth funds, and future emission changes.
Rewards: Active users of the protocol may receive BANK rewards. A portion of ongoing protocol revenue funds a sustainable reward pool for users who interact with the platform, vote, or take part in community activities.
Lorenzo’s architecture is powered by its Financial Abstraction Layer (FAL), a routing mechanism that allocates user deposits into corresponding underlying strategies. When a user allocates capital to an OTF, Lorenzo automatically issues tokenized units representing their share of that strategy. This abstraction simplifies complex financial behavior, allowing users to hold a single token that reflects a complete structured strategy beneath it. Instead of juggling multiple positions or executing complicated trades, investors can participate in entire strategies through one composable asset.
What sets Lorenzo apart is the way it reshapes how DeFi participants think about yield. In most ecosystems, users chase the highest APYs without understanding risk exposure, liquidity constraints, or the mechanics behind returns. Lorenzo invites a transition away from this behavior by introducing products whose performance depends on strategic logic, not temporary emissions. Participants choose strategies like volatility funds or managed-futures pools with the same intentionality as traditional investors selecting ETFs or hedge fund exposures. This shift toward structured decision-making is one of Lorenzo’s most important cultural contributions.