The problem that DeFi has still not solved
For years, DeFi has promised an open alternative to traditional finance. However, many yield protocols continue to operate like makeshift markets: temporary incentives, fragmented risk, and little real visibility into how capital is managed.
Here a key distinction arises: generating yield is not the same as managing assets.
Asset management involves processes, rules, and risk control. It is not just about finding yield, but about allocating capital consistently and measurably. That is the gap that Lorenzo Protocol seeks to fill.
Lorenzo does not position itself as a farming protocol but as on-chain asset management infrastructure. Instead of pushing tactical decisions to the user, it introduces systems that think about portfolios and structures, not isolated positions.
From this perspective, the value of the protocol is not in a specific product, but in its ability to transform passive capital into managed capital. Based on that, its vaults, OTFs, and vision of on-chain investment banking are built.
In that context, the role of the token $BANK is to govern how capital is managed, not simply to incentivize liquidity.
@Lorenzo Protocol leaves an open question for DeFi: what happens when we stop optimizing APYs and start designing financial architecture?
Image: Lorenzo Protocol on X
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This publication should not be considered financial advice. Always conduct your own research and make informed decisions when investing in cryptocurrencies.
