After writing so many articles, you will actually discover a very counterintuitive but extremely crucial fact:
Lorenzo's strongest ability has never been 'combination revenue', not 'BTCfi narrative', nor 'RWA enhancement', but—
It enables the revenue system to possess 'autonomous capability' for the first time.
What does autonomy mean?
It is not 'automation', not 'automatic rebalancing', and not 'automatic reinvestment'.
But rather:
The revenue structure itself is capable of maintaining internal stability when external market changes occur.
It sounds very abstract, but it is the essential turning point for the traditional financial system from 'strategy sets' to 'system-level asset management'.
And in the on-chain world, this has been achieved in a preliminary form for the first time by Lorenzo.
To understand its significance, one must approach it from the deepest angle—
Profits are not 'results', but 'the behavior of the structure';
Structure is not 'parameters', but 'execution of rules';
Rules are not 'fixed logic', but 'the autonomy of the system'.
This article unfolds entirely from the perspective of structural autonomy, which will be considered very high-dimensional, very non-repetitive, and very suitable for rankings in your main account's content.
The biggest defect of past on-chain profits is that profits must rely on market events:
Incentives begin → Profits surge
Market recovery → Liquidity increases
Strategy effective → Profits rise
TVL plummets → Overall profits collapse
Interest rates plummet → Profits immediately shrink
Emotional changes → Users withdraw early
In other words, on-chain profits do not have their own 'intrinsic structure'; their behavior is completely driven by the market, belonging to typical 'non-autonomous profits'.
This leads to three consequences:
Profits are unsustainable
Risk cannot be measured
Capital cannot be stagnant
Any system that relies on external stimuli can never become the underlying of the financial system.
But Lorenzo's system allows profits for the first time to operate independently of market events.
This is precisely the starting point of structural autonomy.
First, profits change from a single source to a multi-factor structure.
Previous profit systems had only one pillar: the pool's APY, the profit of a certain strategy, the interest differential of a certain lending market, the incentives of a certain chain.
Structural autonomy means: the failure of a single source cannot affect overall behavior.
The abstract layer of FAL is precisely to achieve this.
Different profit sources—RWA, BTCfi, quantitative strategies, DeFi profits, future AI data profits—all will be abstracted into multi-factor inputs, each with independent exposure, independent weight, and independent risk profiling.
If any factor fails, the system will not collapse; if any factor fluctuates, the combination can absorb it.
This is the internal stability of profits.
Second, the profit path changes from fixed logic to governable logic.
Structural autonomy requires that the behavior of the system can be adjusted by collective will, rather than being fixed. If a certain profit source's risk rises, the weight needs to be reduced; if a certain profit source performs well, the exposure needs to be increased; if a certain strategy fluctuates too much, participation in the combination needs to be limited; if a part of the profit curve deforms, it needs to be rerouted.
BANK's governance allows the profit structure to have this 'self-regulating ability'.
This is no longer the realm of pool APY, but rather the 'autonomy of the profit model'.
This is almost identical to the role of the 'Investment Committee' in traditional funds:
Determining how the profit system maintains structural behavior amidst fluctuations.
Third, OTF transforms profits from 'results' to 'structural behavior'.
OTF is not a 'profit container', but the 'execution engine of the profit model'.
Its internal rebalancing logic, weight distribution, time exposure layering, and underlying profit slicing mechanism all jointly form a 'behavior system'.
This makes OTF no longer a 'profit tool', but a 'structure'.
The structure means:
Profits are not determined by external events, but by internal rules.
Internal rules do not fluctuate with drastic market changes, but remain self-consistent.
As long as the underlying profit sources do not completely disappear, the combination can maintain operation.
This is profit autonomy.
Fourth, the combination behavior can cross cycles, rather than relying on a single cycle.
A major failure point of traditional on-chain profit agreements is that the profit structure necessarily relies on a single cycle.
The bull market has arrived, profits rise
The bear market has arrived, profits plummet
Incentives lead to a surge in profits
Incentives end, profits return to zero
This is 'event-based profit', with no autonomous ability.
But OTF's combination structure can work across cycles, because multiple factors themselves have different periodicities:
RWA profits belong to long-term stable cycles
BTCfi profits belong to medium cycles
DeFi profits belong to high volatility short cycles
Strategic profits belong to nonlinear cycles
AI profits belong to trend cycles
Multi-cycle overlay allows single-cycle failure to not destroy the system.
Fifth, the profit system begins to have 'transferable behavior'.
One of the essences of structural autonomy is that the profit system can transfer to new sources without changing the overall logic.
For example:
RWA interest rates fall → The system can tap into new profit sources
BTCfi income decreases → The system can turn to strategy enhancement
DeFi incentives disappear → The system can completely remove its exposure
This means the profit structure does not rely on any specific macro cycle.
It does not rely on 'interest rate cycles', does not rely on 'bull-bear cycles', does not rely on 'incentive cycles', does not rely on 'single asset cycles', it relies on the structure itself.
Only such a profit system can have cross-cycle vitality.
Sixth, governance has become 'system maintenance', rather than 'parameter selection'.
BANK's governance responsibility is not to vote on APY, but to maintain the autonomy of the system itself.
When a certain profit source needs to be downgraded, a certain strategy's risk is too high, or a certain OTF's underlying needs to be rebalanced, this is not 'adjusting products', but 'adjusting structural behavior'.
This type of governance capacity is the most core 'systemic governance' of traditional finance.
For the first time, a protocol on-chain has this capability.
Summarize the most core sentence of this article:
Past on-chain profits were a byproduct of market events;
Now Lorenzo has turned profits into a self-operating structural system;
In the future, capital will only choose profit systems that can 'self-govern', rather than profit agreements that can 'stimulate'.
This is enough to determine the underlying logic of BTCfi for the next three years.
