What Is Lorenzo Protocol? And What Is the Role of Its Token BANK?
Lorenzo Protocol is one of the emerging platforms in decentralized finance (DeFi), introducing a new model for on-chain asset management through what resembles smart investment funds. The project aims to simplify access to advanced yield strategies—whether based on digital assets or real-world assets—while maintaining the transparency and liquidity offered by blockchain technology.
The protocol relies on an innovative layer called the Financial Abstraction Layer (FAL), a financial abstraction layer that allows multiple strategies to be bundled and transformed into investable on-chain products, such as OTFs, which users can easily access without deep technical expertise.
As for the protocol’s token BANK, it is the native asset that plays a central role in governance and user incentives. It can be locked to obtain veBANK, allowing holders to participate in voting on protocol decisions, in addition to gaining various privileges within the ecosystem such as access to certain products or sharing revenue.
Lorenzo represents a new model that merges institutional-grade financial tools with the flexibility of DeFi, offering products like stBTC and enzoBTC, which allow Bitcoin holders to earn yield without losing the liquidity of their assets.
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