đ€Ż Bridging the Gap: How Lorenzo Protocol is Reinventing DeFi Trust đ€
Lorenzo Protocol isnât chasing a fully trustless dream â itâs building a system of verifiable responsibility. Theyâre tackling the biggest challenge in hybrid DeFi: proving off-chain actions actually happened as reported.
Itâs a three-layer proof pipeline:
1ïžâŁ Signed Facts: Exchanges & custodians digitally sign execution data (trades, balances). Tamper-evident, not tamper-proof.
2ïžâŁ NAV Attestation: A designated oracle aggregates data & calculates the Net Asset Value, signing the final figure. Clear accountability.
3ïžâŁ Smart Contract Settlement: On-chain contracts verify oracle signatures & enforce outcomes. Immutable record of off-chain to on-chain connection.
This isnât about eliminating trust, itâs about *containing* it â making it explicit, auditable, and economically accountable. Every actor signs their role, and every signature is visible. Itâs about forcing the off-chain world to leave fingerprints.
This approach unlocks strategies blockchains canât natively support, bringing new possibilities to $BANK and the wider DeFi space.
#lorenzoprotocol #DeFi #onchain #offchain đ
