In the traditional financial system, investment banks are a key driving force for economic growth due to their outstanding capabilities in financial product design, capital matching, and market intermediation. @Lorenzo Protocol is emerging as an innovative "on chain investment bank", injecting new vitality into the on chain financial ecosystem through tokenized services, diversified revenue product tools, and precise response to market demand. The intersection of traditional investment banks and Web3 Traditional investment banks play an indispensable role in the financial system, with core functions including: one ️⃣ Financial product innovation: Design diversified financial instruments such as stocks, bonds, asset-backed securities (ABS), and derivatives to meet the diverse needs of businesses and investors. two ️⃣ Capital intermediary: By underwriting IPOs, issuing bonds, and matching transactions, it connects the supply and demand sides of funds and promotes market liquidity. two ️⃣ Risk management expert: using hedging tools, insurance products, and asset portfolio management to help clients avoid market volatility risks and maintain financial stability. For example, after the 2008 financial crisis, Goldman Sachs helped companies revitalize their assets and restore market confidence through asset securitization and derivative design. This ability makes investment banks the backbone of traditional finance. The decentralized nature of Web3 provides new soil for financial innovation, but the current DeFi ecosystem still faces significant bottlenecks: one ️⃣ Single and unsustainable source of revenue: Many DeFi protocols rely on highly subsidized token incentives (such as liquidity mining) and lack long-term stable sources of real revenue. two ️⃣ Infrastructure lag: The scale of on chain funds is huge, but there is a lack of efficient tools for generating returns and risk management mechanisms, resulting in a large amount of idle capital. three ️⃣ Insufficient product richness: Existing DeFi products are mostly focused on basic functions such as lending and DEX trading, making it difficult to meet the needs of institutions and high-end users for complex financial instruments. Lorenzo emerged in this context, positioned as the "on chain investment bank" of Web3, filling the ecological gap and promoting the maturity of on chain finance through technology driven and market insights. Lorenzo's' On Chain Investment Banking 'Practice one ️⃣ Tokenization service: a bridge from traditional assets to on chain value Lorenzo's core technology is its Financial Abstraction Layer, a modular on chain financial framework that supports various applications such as asset access, on chain mapping, Vault encapsulation, and API output. Lorenzo's tokenized assets have high interoperability and can be widely applied in the Web3 ecosystem New bank and payment platform: tokenized assets serve as reserves, allowing users to earn profits while making payments. For example, a payment platform can integrate users' BTC reserves into the vault, generating an annualized return of 3-5%. RWA project: After the assets such as artwork and treasury bond are tokenized, the income is optimized through the Vault system to attract more investors. DeFi protocol: tokenized assets can serve as collateral for protocols such as Aave and Compound, or provide liquidity for Uniswap, enhancing ecological diversity. This cross scenario synergy makes Lorenzo a hub in Web3 that connects traditional assets with the on chain economy. two ️⃣ Revenue Product Tool: Diversified Design of Financial Engineering The financial engineering capability of investment banks is their core advantage, and Lorenzo has inherited and innovated this tradition through diversified revenue product tools in Web3. As shown in the figure, in Lorenzo's architecture, users are exposed to on chain assets - OTFs (On Chain Traded Funds), which are like buying ETFs through securities firms in traditional financial markets, and directly enter the on chain wealth management product system. Lorenzo's Financial Abstraction Layer (FAL) supports OTF. This is the technical logic core of the entire system, responsible for identifying, collecting, managing, and scheduling user funds on the chain path. All funds from different channels will first flow into the DeFi Vault management layer, which is used to mark the source and bind corresponding incentive strategies. Subsequently, these funds will be dispatched to the underlying strategy execution module - Yield Vault, which corresponds to actual profit generation actions such as BTC staking, stablecoin arbitrage, quantitative returns, RWA returns, etc. Different strategies can be combined as needed and dynamically adjusted by individuals, institutions, or AI managers to match risk return preferences. The entire system fully integrates the traditional investment banking capability chain of "on chain fundraising, off chain execution, and on chain settlement" onto the chain, and packages it into composable, integrable, and traceable financial products. OTF has become an intermediate anchor point connecting channel platforms, asset strategies, and user returns, with liquidity and openness, enabling Lorenzo to provide standardized return modules for PayFi, RWAFi, DeFAI, and other application scenarios, activating Web3's fund efficiency and wealth management infrastructure. four ️⃣ Functional analogy with traditional investment banks: dual wheel drive of innovation and service Lorenzo is highly compatible with the functions of traditional investment banks: Financial Innovation: Through tokenization and Vault system, Lorenzo has promoted the diversification of on chain financial products, similar to investment banks launching CDS, ABS and other products. Capital docking: Efficiently matching idle funds with profit opportunities, playing the role of an "underwriter" in the on chain market. Modular services: Provide APIs and standard components to lower the development threshold for partners, similar to providing customized solutions for investment banks. Risk and Stability: By diversifying products and risk management, we enhance the resilience of the on chain market, similar to how investment banks stabilize the market during crises. five ️⃣ market performance According to CoinMarketCap data, BANK's current market value is approximately $150 million, a significant increase from the $10 million at the time of issuance. Partners and Ecological Construction The initial partners are the full stack RWAFi public chain Plume Network and the stablecoin NeoBank Infini, marking a crucial step forward for Lorenzo in the implementation of real profit scenarios. Plume Network Plume Network is an RWAfi full stack chain that supports over 180 projects and provides end-to-end tokenization services. Lorenzo and Plume will collaborate to integrate RWA assets into the Vault system. Both parties will work together on core assets such as BTC and stablecoins to explore more sustainable on chain revenue paths. Infini Lorenzo will collaborate with stablecoin Neobank Infini to launch a joint payment card that supports users to use stablecoins for daily consumption and synchronously obtain on chain profits. Both parties will also carry out more revenue oriented product co construction for retail users based on Lorenzo's Financial Abstraction Layer (FAL), promoting the implementation of abstraction layer capabilities in consumer finance and Web3 scenarios. Future prospects one ️⃣ Ecological Expansion: Lorenzo plans to collaborate with more payment platforms (such as Strike), RWA projects (such as Centrifuge), and DeFi protocols (such as MakerDAO), with an expected coverage of 50 partners and TVL exceeding $1 billion by 2025. two ️⃣ technological innovation Introduce AI driven strategy optimization and on chain big data analysis to improve Vault revenue efficiency (target annualized revenue increase to 12-15%), and develop cross chain Vault that supports ecosystems such as Solana and Polygon. three ️⃣ Global layout: Lorenzo will expand into Asia (connecting with the Hong Kong RWA market), Europe (compliant tokenization services), and North America (partnering with Coinbase, etc.) to become a global hub for on chain finance. The official recently released a new roadmap for future development: Q2 2025: Launch financial abstraction layer, launch flagship strategic products, and integrate with early ecosystem partners. Q3 2025: Expand ecological integration, launch more business modules, and establish Lorenzo's financial transparency mechanism. Q4 2025: Continue to expand business scale and launch the first BANK token repurchase plan. Lorenzo's Market Significance and Future Potential Lorenzo, as the "on chain investment bank" of Web3, fills many gaps in the DeFi ecosystem through tokenization services, diversified revenue tools, and precise market response. It not only provides efficient revenue integration solutions for institutions, but also offers users safe and reliable investment choices. Compared to single asset projects, Lorenzo's multifunctionality and ecological synergy give it a greater competitive advantage. In the future, with the improvement of Web3 infrastructure and the diversification of user needs, Lorenzo will continue to promote the on chain transformation of CeFi financial products, build standardized and composable revenue infrastructure, and further consolidate its market position. It is not only an innovator in on chain finance, but also a key force driving the Web3 economy towards higher efficiency and wider inclusiveness.