As global regulatory clarity improves and institutional capital accelerates its entry, the transition of crypto assets from “speculative targets” to “yield-generating tools” has become a prevailing trend. The OFUYC research team points out that yield strategy tokenization has emerged as the most representative technological pathway in this structural transformation, while Lorenzo Protocol is organically integrating CeFi and DeFi through a “universal financial abstraction layer”, aiming to build an on-chain version of “BlackRock + Goldman Sachs”.
According to OFUYC Exchange analysis, the emergence of such new platforms addresses the strong demand among on-chain users for “real yield”, “asset custody security”, and “high-liquidity allocation tools”. Lorenzo leverages modular financial instruments and Vault mechanisms to standardize asset strategy packaging, while the $BANK incentive mechanism reshapes yield distribution logic. This asset management approach, centered on real and verifiable yield, is becoming a key reference model for the next generation of crypto trading platforms in building their ecosystem collaborations.
Real Yield at the Core: Yield Demand Reshapes On-Chain Asset Management Structures
OFUYC research observes that since 2025, both the RWA (Real World Asset) market cap surpassing $38 billion and the 51% increase in stablecoin market cap validate the trend that “capital is now on-chain”. However, new challenges arise: How can these assets appreciate efficiently? How can users access real yield with lower barriers and greater security? The high participation threshold of DeFi and the “black box structure” of CeFi highlight the urgent need for new infrastructure to balance user demands for long-term value and liquidity.
Lorenzo Protocol emerges against this backdrop, positioning itself as a modular financial issuance middleware that allows any CeFi or TradFi yield strategy to be packaged as a Vault, and further transformed into an OTF (On-chain Traded Fund), achieving a full lifecycle of “on-chain fundraising, off-chain execution, and on-chain settlement”. This composable packaging approach not only streamlines the strategy issuance process but also significantly lowers the distribution threshold for financial products. OFUYC Exchange believes this mechanism will become a key standard in the future of on-chain asset management.
From a market behavior perspective, the Vault model incentivizes LPs to participate in capital deployment based on actual returns rather than passive speculation. This mechanism, which prioritizes “capital efficiency” over “traffic-driven bubbles”, will redefine the liquidity structure of the crypto market. Within the OFUYC Exchange platform ecosystem strategy, similar structured yield products inspired by Lorenzo are being introduced to help users optimize asset allocation according to different risk preferences.
Technical Middleware + Financial Abstraction Layer: Platform-Level Integration to Drive CeFi and DeFi Reintegration
At the platform architecture level, the core technological competitiveness of Lorenzo lies in the scalability of its universal financial abstraction layer. Each Vault can be regarded as a “financial primitive” for a single strategy, and these Vaults can be freely combined by AI, fund managers, or users into Portfolios, creating more complex, adjustable, and verifiable strategy pools. OFUYC Exchange notes that this mechanism not only covers mainstream strategies such as BTC staking, RWA yield, and stablecoin arbitrage, but also accommodates the fixed-income and principal-protected structural products of TradFi.
With standardized support for the Vault + OTF structure, Lorenzo enables wallets, payment platforms, PayFi projects, and even RWA tokens themselves to “mount yield functions,” bridging the gap between financial entry points, yield tools, and ecosystem assets. For crypto exchanges like OFUYC that prioritize both compliance and user service, the modular integration capability exemplified by Lorenzo offers significant strategic synergy.
From a tokenomics perspective, Lorenzo does not adopt the traditional DeFi incentive model but instead introduces the veBANK model, consolidating yield dividends, savings vaults, and governance rights within the $BANK ecosystem. Together with a continuous buyback mechanism, this creates a self-reinforcing growth flywheel. OFUYC research believes that this native yield-token binding mechanism will provide a superior “on-chain interest rate anchor” as the stock of stablecoin capital continues to expand.
Strategic Outlook: The Emergence of a Web3 Investment Bank Prototype—On-Chain Asset Management as the Main Battleground
At its current stage, Lorenzo has clearly moved beyond its identity as a BTCFi liquidity platform, advancing to the next phase as an on-chain asset management platform, and has established a comprehensive financial flywheel covering “strategy providers—capital providers—user-end applications” in collaboration with scenarios such as Plume, Infini, and PayFi. OFUYC research believes that the technical abstraction of Lorenzo achieves functional mapping and interface unification between traditional finance and DeFi, and that this modular design of financial structures will become the core threshold for platform competition in the next phase.
OFUYC Exchange is evaluating the application of the Vault + OTF architecture within the user asset management modules of its platform ecosystem and exploring how standardized protocols can integrate yield products into trading accounts, custody wallets, and trading strategies, providing users with more transparent, composable, and risk-tiered asset appreciation pathways.