On April 18, 2025, the exclusive TGE event of Lorenzo Protocol launched on Binance Wallet sparked community discussion.

The topic center focuses on the strong performance of this TGE: under the stricter participation threshold of ‘having bought Alpha tokens on Binance in the last 30 days’, Lorenzo still achieved an impressive oversubscription ratio of 183.29 times;

On the other hand, many people’s first impression of Lorenzo likely stems from his outstanding achievements in the BTCFi field: as a Bitcoin liquidity financial layer, Lorenzo currently integrates 20+ blockchains and 30+ DeFi protocols, providing interest services for over $600 million worth of Bitcoin. Many people also notice that Lorenzo has chosen ‘BANK’ as the token name.

BANK - 银行，其中蕴含无限遐想：

With the clear trend of crypto regulation, institutions are gradually becoming more confident in crypto assets. 2025 is seen as a key year for the explosion of online finance, and with more and more funds settling online, a huge demand for “asset yield” is emerging. Amidst the opportunities:

How to simplify the entry barriers to better accommodate users and funds?

From speculation to a return to long-term value, how to build a truly income-generating path with real returns at its core?

Does Lorenzo’s BANK hide the layout of the next stage of the project?

The parties involved are not keeping it a secret either. With Lorenzo announcing the brand upgrade, a new chapter centered on ‘institutional-grade on-chain asset management platform’ is unfolding.

By building the core integration of asset management and investment banking services, focusing on the tokenization of CeFi financial products and integrating them into the DeFi scene, providing modular revenue products that are composable, verifiable, and one-click integratable for those who want to issue financial projects, and through revenue products, providing users with secure, low-threshold, and diversified asset interest options, further building a new on-chain financial network with real income at its core.

From BTCFi to the ‘BlackRock + Goldman Sachs’ of the Web3 version, how exactly is this achieved? Let’s explore it.

Funds are on the chain, but the income infrastructure is lagging behind.

We can feel the trend of capital on-chain from many aspects:

According to CoinGecko data, as of April 25, 2025, the total market value of the RWA market reached 383 billion US dollars, compared to 190 billion US dollars at the end of 2024, an increase of over 100%.

According to Artemis data, as of April 2025, the total market value of stablecoins has reached $231.6 billion, a significant increase of 51% compared to $152.6 billion in the same period of 2024.

Coinbase’s latest survey also illustrates the point well: in a survey of 352 institutional decision-makers, 83% of respondents plan to expand their cryptocurrency allocations this year, and 59% plan to allocate more than 5% of their asset management size to Crypto assets by 2025.

Behind this trend, on the one hand, is the decentralization, transparency, and efficient capital circulation brought by blockchain technology to on-chain finance, and on the other hand, it is also inseparable from the clear, open, and inclusive global crypto regulatory policies led by the Trump administration in the United States, which have helped institutions overcome compliance barriers to participate.

More active institutional participation has brought in a wider range of users, driving the rapid development of financial access products such as wallets, Neobanks, and issuing institutions.

But, once the funds are on the chain, what’s next?

User engagement is most likely to be driven by returns, which will inevitably bring huge growth opportunities for Lorenzo as a blockchain asset management platform.

Simply lying in the wallet as a pure asset does not generate income on its own. Faced with a wider range of users and larger scale of funds, how to build a more complete income infrastructure has become a new challenge in the new situation:

As a core pillar of the cryptocurrency industry, DeFi has advantages such as openness, transparency, permissionless, and fair participation. However, the complexity of blockchain brings a higher barrier to entry for DeFi, and the scale of funds, liquidity, and market maturity of DeFi cannot be compared with CeFi. More importantly, in a speculative market like DeFi, most of its returns currently rely on short-term incentives, which cannot better meet the real income needs of most users.

Although traditional finance has long been criticized for trust issues caused by opaque fund management and ‘black box’ asset operations, it has core advantages such as high liquidity environment, more mature trading tools, and richer profit strategies. Bringing these advantages to the chain faces many technical challenges.

How to integrate the advantages of both, bringing a chain-based asset interest experience that is transparent, fair, low-threshold, and profitable?

By building a universal financial abstraction layer, Lorenzo is building a bridge connecting traditional financial products with DeFi, driving the implementation of more complex yield strategies and financial scenarios.

Left-hand capital, right-hand strategy: How does Lorenzo build an on-chain ‘investment bank’?

How to quickly understand how Lorenzo builds an “institutional-grade on-chain asset management platform based on real income” in one sentence?

In short, we can view Lorenzo as a modular financial issuance middleware, following the operating principle of ‘on-chain fundraising, off-chain execution, on-chain settlement’.

If you want to package your yield strategy as a yield product and release it to attract more funds to expand your asset management scale, Lorenzo offers a one-click solution:

Lorenzo supports seamless access to any income strategy, including traditional financial income strategies such as CeFi and TradFi, whether it’s BTC staking, stablecoin arbitrage, RWA income trusteeship, fixed income, principal protection, dynamic leverage products, etc. This full coverage of different income strategies ensures that users have ample choices under different risk preferences and income expectations.

It is important to note that as one of the most representative tokenization projects of financial assets in DeFi, Ethena currently focuses only on the encapsulation of the USDe, with a market value of 485 million US dollars. On the other hand, Lorenzo supports the landing of tokenization and combination scenarios for a variety of financial products, bringing truly modular and diversified income infrastructure to on-chain finance, and bringing potential for exponential growth in the future.

More importantly, many people are discouraged by the high threshold of the release operation, but Lorenzo’s universal financial abstraction layer makes it all simple: when you want to launch a revenue product, you don’t need to worry too much about implementation challenges. By calling Lorenzo’s Vault API, Lorenzo will encapsulate the revenue strategy into standardized revenue components.

Modularity and composability are another major advantage of Lorenzo: as income components, each Vault represents the tokenization of an income strategy, forming a single strategy pool, and different Vaults can be freely combined. By aggregating multiple Vaults, a composite strategy pool can be constructed, and individuals, institutions, or AI can dynamically adjust positions as Portfolio Managers to implement more advanced income strategies in response to market conditions.

Based on the advantages of composability, Lorenzo will also provide customized revenue design, secure custody mechanisms, and product function combinations for profit strategy issuance to users, especially institutional users, adapting to the revenue management needs of different institutional scenarios.

If you want to integrate income products for your project and provide users with better interest-bearing services, Lorenzo can also be easily handled with a single click:

After the yield strategy is encapsulated into a Vault, an On-Chain Traded Fund (OTF) will be issued. We can understand it as a strategy fund similar to an ETF, thus achieving the tokenization of financial yield strategies. As a modular standard, OTF can be easily integrated into upper-layer applications such as wallets, PayFi, and RWA by invoking Lorenzo’s Vault API.

If you want to generate income from your assets, Lorenzo offers a variety of income products for you to choose from.

When the yield product is launched, a market based on the yield strategy is established: users can choose a Vault that meets their needs and provide funds for it, and they can receive Vault yield sharing.

Once the Vault raises funds, it will execute profit strategies to generate income, and the distribution of income will be carried out on-chain through smart contracts, which not only simplifies the distribution of income, but also ensures the public transparency and verifiability of the Vault, further enhancing trust.

At the same time, Lorenzo will also use $BANK as a core incentive to further activate the enthusiasm of the entire ecosystem, thereby building a sustainable long-term value mechanism:

As the native token, $BANK has a total supply of 21 billion coins and features utility such as governance decision-making, intelligent savings vault earnings, dividends, etc.

The main source of revenue for the Lorenzo protocol comes from strategy aggregation, cross-chain bridge services, and ecological cooperation dividends, which are continuously used to repurchase $BANK, thus establishing a value support logic directly linked to the growth of the protocol. The token repurchase plan is not only a way for the platform to give back to users but also a strong endorsement of the ecological value of Lorenzo. This measure will effectively improve the market liquidity and value of the BANK token, while also injecting more confidence and motivation into the Lorenzo ecosystem.

In addition, Lorenzo will introduce the veBANK model, which deeply integrates tokens with protocol governance, ecological incentives, ranking systems, and task mechanisms, further enhancing user stickiness and long-term participation motivation. The series of measures are committed to attracting and empowering users who hope to increase the value of their assets, continuously driving the sustainable expansion of the ecosystem.

Both the strategy issuer and the fund provider will meet their respective profit needs through Lorenzo:

For institutions / projects:

You can choose to issue income-generating products to attract more funds and users; you can also choose to directly integrate income-generating products to empower users; or you can invest your own large-scale funds in income-generating products to achieve better risk and return management.

For ordinary users:

No complex operations are required. Users only need to buy OTF to indirectly participate in the relevant custody strategy pool, and achieve stable income based on real income, which is sustainable and verifiable on the chain.

In addition, based on the $BANK token, an effective ecological incentive will be built. Lorenzo will further stand with all ecosystem participants. For community users who actively participate in tasks, promotions, staking, and other activities, they will also receive airdrop incentives and long-term benefits to share the ecological development dividends and jointly promote the project’s growth.

In this way, Lorenzo plays an important role in the ‘on-chain investment bank’: by providing tokenization services for financial assets, modular income infrastructure, and a complete set of tools for designing, packaging, and deploying income products, transforming off-chain financial logic into composable, verifiable, and sustainable on-chain capabilities, achieving efficient matching of income strategies and funds. Through continuous ecological development, Lorenzo is further endowed with unlimited potential for exponential growth in the future.

From Payment, PayFi, RWAFi to DeFAI: Accelerating the integration of DeFi, CeFi, and TradFi

Before discussing the ecological construction, we first need to clarify the main participants in the ecosystem.

Of course, users are the top priority, and the asset income narrative focused by Lorenzo can be said to be the core appeal of most on-chain users. More importantly, unlike other DeFi, Lorenzo aggregates on-chain and off-chain yield strategies and tokenizes them, making participation not only simple but also truly achieving long-term sustainable real income, which is more favored by users.

And focusing on the entities involved in Lorenzo’s ecosystem around ‘how to provide better services to users,’ from DeFi, CeFi to TradFi, we will discover a higher development ceiling under the narrative of Lorenzo’s ‘on-chain investment banking’.

Who will be the issuer of the revenue strategy for the Lorenzo ecosystem?

With the goal of productizing strategic capabilities and further expanding the scale of asset management, Lorenzo’s revenue products will attract key attention from quantitative funds, RWAFi platform, CEX, DeFi protocols, and LP strategy providers.

Who would be interested in products that integrate Lorenzo’s revenue?

Whether it’s a wallet, payment platform, RWAFi project party, or card organization, as long as its product function involves assets, its users will have asset interest demands. Lorenzo’s low-threshold, efficient, and secure ‘embedded income product’ solution is attractive.

Who will be the provider of funds for Lorenzo’s revenue products?

Undoubtedly, institutions holding a large amount of user funds and seeking more efficient and secure fund custody, appreciation, and income distribution methods, in addition to retail investors with profit demands, will become the main force, including Neobank digital banks, wallets, card issuers, PayFi products, profit accounts of CEX & trading platforms, and Decentralized Finance (DeFi).

It can be said that this is an all-encompassing ecosystem that can support the healthy and sustainable development of DeFi, CeFi, and TradFi, and also lay a solid foundation for the rapid expansion of Lorenzo’s ecosystem.

Taking the RWAFi project as an example, although RWA has become one of the fastest-growing tracks by 2025, it also faces the problem of insufficient attractiveness due to a low annualized return rate of 3-5%. By collaborating with Lorenzo, RWA Token can be pledged out through the Vault provided by Lorenzo, stablecoins can be drawn out through CDP, CEX, or Prime Brokerage, and then deployed into yield strategies to easily double the overall yield.

On May 9, 2025, Lorenzo announced a strategic partnership with the leading RWA project Plume. The two parties will collaborate on core assets such as BTC, stablecoins, etc., to promote their application in the RWA scenario and explore more sustainable on-chain revenue paths. Plume has attracted over 180 projects to join, laying a solid foundation for Lorenzo’s product integration and ecosystem cooperation.

The PayFi project is no exception. Currently, most PayFi projects, such as credit card platforms, wallets, or payment applications, usually require users to stake BTC or stablecoins as reserves. Lorenzo can deposit these underutilized ‘idle assets’ into the Vault, deploy them into yield strategies, help the platform increase asset utilization, reduce operating costs, and even return some of the profits to users.

Previously, Lorenzo also collaborated with the stablecoin digital bank Infini to jointly launch a co-branded payment card, supporting users to use stablecoins for daily consumption, promoting the real-world consumer-level applications of cryptocurrencies. At the same time, they will also receive on-chain benefits simultaneously. In the future, based on Lorenzo’s Financial Abstraction Layer (FAL), both parties will develop more profit-sharing products for retail users, promoting the landing and extension of abstraction layer capabilities in consumer finance and Web3 scenarios.

Furthermore, the lack of reliable income strategy sources has been one of the reasons for the failure of DeFAI to take off despite the previous attention to the concept. Lorenzo provides Vaults with multiple strategy combinations, and DeFAI Agent can act as a “portfolio manager” to freely allocate strategy combinations, operating like a hedge fund without the need to build strategies or execute infrastructure.

In fact, in addition to the Plume and Infini mentioned above, after announcing the brand narrative upgrade, there are multiple projects deeply cooperating and negotiating with Lorenzo around the core narrative of ‘financial abstraction layer’. In the future, as Lorenzo continues to develop the ecosystem, more partners will announce joining Lorenzo, jointly building a new on-chain financial infrastructure with real income as the core.

Web3 ‘BlackRock + Goldman Sachs’: Heading towards trillion-dollar asset scale

Brand upgrade is the first call sounded by Lorenzo to build a ‘chain-based asset management platform integrating CeFi and DeFi.’ Through the official roadmap, we can also see Lorenzo’s clear planning and robust execution to achieve transformation, further creating a revenue ecosystem truly driven by tokenized financial products.

In the second quarter of 2025, Lorenzo’s core goal is to launch the financial abstraction layer to build the infrastructure, providing users with a more intuitive and user-friendly financial service experience, breaking down the complex on-chain barriers. At the same time, Lorenzo will introduce its flagship financial strategic product and engage in deep integration with early ecosystem partners to jointly build a more synergistic financial network.

By the third quarter, Lorenzo’s focus will shift to ecosystem expansion and business diversification, providing users with more choices. Additionally, Lorenzo will establish a public financial reporting system to transparently showcase the platform’s operational status to users, further enhancing user trust.

And in the last quarter of 2025, Lorenzo’s main focus will be on further expanding the business scale and initiating the first BANK token buyback program.

With the implementation of multiple roadmaps, Lorenzo will gradually evolve into a comprehensive financial platform integrating asset management and investment banking services. Many community members also compare Lorenzo’s brand upgrade this time to the moment when the ‘BlackRock + Goldman Sachs’ of Web3 was born.

This analogy is partly derived from the elite team background, impressive fundraising performance of Lorenzo, and the reputation accumulated from long-term focus on DeFi.

According to the official website, Lorenzo’s core members are not only graduates of big-name schools, but also have worked in well-known institutions such as Wall Street investment banks, ZetaChain, Magic Eden, and Xterio, with rich experience in cutting-edge technology fields such as finance, Crypto, and AI applications.

In addition, Lorenzo is also a favorite of capital: in May 2024, Lorenzo announced the completion of the seed round financing, attracting the favor of well-known institutions including Yzi Labs, Gumi Cryptos, Portal Ventures, Animoca brands, etc.

As the starting point of the on-chain asset management business, Lorenzo, with his outstanding performance in the BTCFi track, currently provides interest services for over $600 million worth of Bitcoin, accumulating various aspects such as the community, ecosystem, and users, and becoming a necessary reserve for its development into a Web3 version of ‘BlackRock + Goldman Sachs’.

On the other hand, benchmarked against BlackRock’s $11.48 trillion and Goldman Sachs’ $3.2 trillion asset management scale, many community members also have higher expectations for Lorenzo’s future growth: by building a new on-chain financial ecosystem with real income at its core through a universal abstraction layer, Lorenzo achieves income services that are more openly transparent, less permissioned, more intelligent, and more composable than BlackRock and Goldman Sachs. At the same time, it adds the huge advantages of Web3 in value capture and income distribution, and forms an ecological sharing growth flywheel by incentivizing ecosystem participants with the $BANK token.

Standing in the United States, leading the first shot of crypto-friendly, the direction of global cryptocurrency regulation is becoming clear, more and more institutions, users, and funds are actively exploring crypto finance in 2025. Facing the rapidly expanding asset management and interest-bearing needs, can Lorenzo use income products as a starting point to build a bridge connecting CeFi and DeFi, truly benchmarking the “BlackRock + Goldman Sachs” of Web3 version, becoming the “income hub” of trillion-dollar on-chain assets?

With the brand upgrade of Gate.io, TGE, ecological construction, and the landing of many other milestones, perhaps we are standing at a key window of transformation of on-chain asset management paradigm.

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