What is Lorenzo Protocol (BANK)?

Lorenzo Protocol is an asset management platform that transfers established financial strategies to the blockchain through tokenized products. It allows both individuals and institutions to use structured yield and portfolio solutions without creating or maintaining their own financial systems.

Approaches such as quantitative trading or volatility-based portfolios usually depend on complex tooling, reliable data feeds, and constant oversight. Lorenzo simplifies this through its Financial Abstraction Layer, which handles capital allocation, executes strategies, monitors results, and distributes returns for applications and users.

With this setup, wallets, payment services, and real-world asset (RWA) platforms can integrate yield-oriented functions in a consistent format, while users gain direct on-chain access to diversified financial strategies.

How does the Lorenzo Protocol Work?

Deposits and capital allocation

User funds are managed through vaults — smart contracts that hold assets and assign them to defined financial strategies. When supported assets are deposited into a vault, liquidity pool (LP) tokens are issued to represent the user’s share in the strategy.

Capital allocation is coordinated by the Financial Abstraction Layer (FAL), Lorenzo’s backend system responsible for custody coordination, strategy selection, and fund routing. Based on the vault’s design, assets may be assigned to a single strategy or spread across several portfolios that follow preset allocation rules and risk parameters.

Strategy execution and performance tracking

After allocation, yield generation is carried out via off-chain trading strategies run by approved managers or automated systems. These operators may perform tasks such as arbitrage, market-making, or volatility-based trading using custody wallets and exchange sub-accounts with restricted permissions.

Performance results are reported on-chain at regular intervals. Smart contracts then update the vault’s net asset value (NAV), portfolio breakdown, and individual user returns, providing clear and verifiable insight into strategy performance.

Yield distribution and withdrawals

How yield is distributed depends on the specific vault or product. Some vaults connect directly to On-Chain Traded Funds (OTFs), which are tokenized investment products similar in structure to traditional ETFs but fully on-chain. Returns may appear as NAV growth, claimable rewards, or payouts at a fixed maturity, depending on the product design.

When a withdrawal is requested, LP tokens are burned and the corresponding assets are settled within the vault. For strategies that operate off-chain, settlement occurs through custody partners before funds are returned to the vault contract. Once the process is complete, users receive their original deposit plus any earned yield.

Key Products and Features

Lorenzo offers several OTF options that bundle underlying strategy portfolios into on-chain tokens. These tokens can be held, traded, or used across the broader ecosystem.

stBTC

stBTC is Lorenzo’s liquid staking token for users who stake bitcoin through the Babylon protocol. It represents staked BTC while keeping assets liquid and earning yield. stBTC can be redeemed on a 1:1 basis for BTC, with additional rewards potentially distributed through Yield Accruing Tokens (YAT).

enzoBTC

enzoBTC is a wrapped bitcoin token issued by Lorenzo and fully backed by BTC. It provides another way to use bitcoin in DeFi while maintaining price alignment with BTC. enzoBTC can also be deposited into Lorenzo’s Babylon Yield Vault to earn staking rewards indirectly, offering an alternative to staking native BTC directly.

USD1+ and sUSD1+

USD1+ and sUSD1+ are stablecoin-based products built on USD1, a synthetic dollar issued by World Liberty Financial Inc. (WLFI). USD1+ is a rebasing token that increases balances as yield is generated, while sUSD1+ reflects returns through NAV appreciation. Both options give stablecoin holders access to passive, multi-strategy returns through a streamlined on-chain structure.

BNB+

BNB+ represents a tokenized version of the Hash Global BNB Fund (BNBA), bringing institutional BNB yield strategies on-chain. Each token corresponds to a share of the fund’s NAV, which grows through BNB staking, node operations, and ecosystem incentives. Returns are realized through NAV growth, offering managed exposure to BNB.

What is the BANK Token?

BANK is the native token of the Lorenzo protocol, with a fixed supply of 2.1 billion tokens issued on BNB Smart Chain (BSC). BANK can be locked to mint veBANK, which unlocks additional functions across the platform. The token serves several roles:

• Staking: BANK can be staked to access protocol privileges such as voting rights, feature access, and influence over incentive mechanisms.
• Governance: BANK holders participate in governance decisions, including product updates, fee changes, ecosystem fund usage, and emission adjustments.
• Rewards: Active participants may earn BANK incentives. Part of the protocol’s ongoing revenue supports a reward pool for users who engage with products, vote, or contribute to community activities.

The BANK token is listed on many platforms, including Bitfinex, XT, WEEX and Binance Alpha. If you’re looking to list your token on similar platforms, understanding the token listing process and crypto exchange listing fees is essential.

Conclusion

Lorenzo offers a structured on-chain framework for accessing yield strategies through a transparent and organized system. By combining vaults, the Financial Abstraction Layer, and OTF products, users can take part in staking, quantitative trading, and multi-strategy portfolios without handling the underlying complexity. With products such as stBTC, enzoBTC, sUSD1+, and BNB+, the protocol supports different forms of yield exposure while maintaining liquidity and on-chain transparency.

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