In the Lorenzo Protocol ecosystem, there are three different "types of money" (tokens), each with its own purpose. It's like having cash, a debit card, and company shares — all are money, but they are used differently.
1. Token USD1
Who: The company World Liberty Financial (WLFI) issues this token.
Why: USD1 is a stablecoin, meaning its value always aims to equal 1 US dollar. It is backed by real assets (reliable US government bonds). Its goal is to be a safe "cash" in the world of cryptocurrencies, so you can comfortably buy other assets or invest without fearing sharp price fluctuations.
2. Token sUSD1+
Who: Lorenzo Protocol issues this token for investors of its USD1+ OTF fund.
Why: When you invest your USD1 in the Lorenzo fund, you receive in return the token sUSD1+. This is your "receipt" or "share" in a large investment portfolio. The value of this token slowly but steadily increases as the fund earns money from its strategies (bonds, trading, other protocols). By simply holding this one token, you automatically earn profits.
3. Token $BANK
Who: Lorenzo Protocol is the creator of its main token $BANK.
Why: $BANK — this is like a voting right or a share in a company.
Owners $BANK can vote on important changes in the operation of the entire protocol.
And large investors (even WLFI) buy $BANK to show their confidence and have voting rights, making the project more reliable.
WLFI gives you stable money (USD1), Lorenzo converts it into an "investment ticket" that generates income (sUSD1+), and gives you voting rights in the project ($BANK).
