At this point, there is actually a key issue that I have intentionally not elaborated on—because it is too important and too easily overlooked by the market: the true future of on-chain yields lies not in the assets themselves, not in the product forms, but in 'how yields flow across assets, across chains, and across ecosystems'.
In traditional finance, the reason why profits can flow from one market to another is that there exists a fundamental 'cash flow network'. Interest rates can penetrate markets, capital costs can be transmitted, yield curves can be repackaged as derivatives, and the cash flows of various assets can be exchanged, hedged, layered, and stratified.
On-chain has completely lacked this capability in the past.
The pool is isolated, the strategy is isolated, the chain is isolated, and the yield itself is even more isolated.
Yield cannot be transmitted across assets, nor can it be structurally migrated.
But Lorenzo's system is taking BTCfi from 'single-market yield' to 'multi-market cash flow network.'
This is the most revolutionary part of all its structural innovations.
This article focuses solely on this point: why Lorenzo's architecture essentially constructs an 'cross-asset yield transmission layer' on-chain, and why this will become the foundation for the future of BTCfi and RWA financialization.
On-chain yield could only circulate within assets in the past.
BTC deposited in a pool → generates BTCfi yield → returns to the pool.
USDC is put into borrowing protocols → earns interest → still remains within the protocol.
RWA yield comes from U.S. Treasury bonds → distributed to those who buy the product → cannot enter other yield systems.
Quantitative strategy earnings → only distributed to participants → cannot become a source of system yield.
On-chain yields are like being sealed in individual 'containers,' with no connectivity between them.
This is also the fundamental reason why a true financial system cannot be formed on-chain.
But the cash flow separation of stBTC/YAT has for the first time allowed BTC's yield to flow out from within the asset, becoming a 'freely routable cash flow.'
It no longer remains in a specific protocol nor relies on a specific pool, but can enter abstract layers, portfolio layers, and model layers.
In other words, BTC's yield for the first time has the capability of cross-asset migration.
If yield can migrate, it can be combined;
If it can be combined, it can enter different asset structures;
If it can enter different structures, it can form a network;
If a network can be formed, it can generate a financial system.
This is the true value of stBTC/YAT.
But to form a network, there must be an 'intermediary layer.'
This intermediary layer is FAL.
The role of FAL is not to aggregate yield but to convert yield into a 'routable format.'
Only when the format is unified can yield flow across assets.
Only when the format is unified can yield flow across chains.
Only when the format is unified can yield enter multi-market portfolios in OTF.
FAL is equivalent to an 'on-chain cash flow compiler': different yield sources are compiled into a unified structure for model invocation.
This is the first time on-chain has had a 'cash flow migration protocol.'
OTF's role is to transform cash flow from 'single-path yield' to 'multi-path distribution.'
RWA's cash flow can enter the same product.
BTCfi's yield can be layered on RWA.
Strategy yield can enhance the base.
DeFi yield can reduce portfolio correlation.
In the future, AI data yield can be further layered.
This means that yields can finally work collaboratively across assets rather than being fragmented.
The so-called 'multi-asset portfolio yield sources' of traditional financial systems are built on this point.
OTF realizes the first true 'yield cross-asset coupling' on-chain.
Next is the core control point of the entire yield network: BANK.
The power controlled by BANK is not which pool replaces which pool, but 'how yield migrates from one asset to another.'
Governance determines which yield sources are allowed to enter the system.
Governance determines the weight of yield entering abstract layers.
Governance determines how yield crosses asset portfolios.
Governance determines how yield is distributed across users and vaults.
Governance determines how yield will expand in the future.
This is essentially a 'yield cross-ecosystem routing right.'
In the past, no protocol in on-chain finance had this power.
This is also why BANK will become a 'yield network sovereign asset' in the long-term structure, rather than a governance token representing a single protocol.
When you can control yield migration across assets, you can influence capital flows between assets.
This is the essence of the cash flow network: it is the foundation of the entire market value structure.
So to understand Lorenzo's future, one must understand why it is the starting point for the 'cross-asset yield network':
BTC asset yields enter RWA base to enhance.
RWA's cash flow enters BTCfi products as a stabilizing factor.
Strategy yield covers portfolio volatility.
DeFi horizontal yield serves as a decentralized source.
In the future, AI data yield will join as an independent cash flow route.
A system can accommodate phenomena far more than the observed products.
Products are merely the surface; the system is the basis for long-term capital choices.
In the end, we will see:
Yield no longer belongs to a specific chain, asset, strategy, or protocol.
Yield becomes a resource that can migrate across markets.
On-chain will see a yield network similar to a 'global interest rate system.'
BTCfi is no longer just a type of protocol that generates PoS yield, but part of a global cash flow network.
And Lorenzo is constructing the first tier of this network.
This means its future is not 'the head of a certain field,'
But it is the 'infrastructure for cross-domain yield structures.'
When yields can be transmitted across assets, chains, users, and protocols,
BTCfi truly possesses the peripheral conditions of a financial system.
The future of on-chain finance is not more pools, more incentives, or more strategies,
it is a cash flow network that can carry all forms of yield.
And Lorenzo has already entered this direction in advance.
