One of the protocol’s greatest innovations lies in its dual-vault architecture. Lorenzo uses both simple vaults and composed vaults to route capital into multiple strategies with precision and automation. A simple vault typically represents a standalone strategy with defined risk parameters. For example, a quantitative trading vault may deploy capital into algorithm-driven market positions, while a volatility vault may dynamically hedge or exploit deviations in implied volatility. These simple vaults help users who prefer targeted exposure rather than broad diversification. They are easy to understand, transparent in risk structure, and optimized for performance tracking.