bian小王子-祺小岚

INJ Token Economic Model 2025 Empirical Review and 2026 Forecast

In 2025, the Injective protocol generated a total fee of $1.288 billion, of which 71.3% (approximately $919 million equivalent) was used for on-chain real-time INJ repurchase and burn, with an annual net burn amount reaching 48.7 million INJ, exceeding the linear unlocking amount during the same period by 3.1 times, resulting in an annualized deflation rate of 38.4%.

The structure of fee sources has undergone fundamental changes: in 2024, the proportion of spot trading was 42% and derivatives 58%; in 2025, the proportion of spot trading dropped to 27%, while derivatives rose to 73%, with interest rate products, RWA baskets, and stock contracts contributing the most.

Looking solely at November, the fees generated from the on-chain Tesla, Nvidia, and Apple stock contracts exceeded the total of the entire Q1 2024 spot trading. Based on the current growth slope of open contracts and the fee/TVL elasticity coefficient, if the open contracts maintain a 35% annual compound growth rate in 2026, the protocol's annual fees are expected to exceed $2.8 billion, corresponding to an annual INJ burn amount of approximately 105 to 120 million, which will account for 54% to 61% of the circulating supply.

Without relying on speculation in the secondary market, INJ has become one of the few Layer-1 native assets that have achieved a closed loop of “protocol revenue → token deflation” and are continuously accelerating.

@Injective
#Injective
$INJ

Macroscopic Perspective of Injective: New Channels for Interest Rate and Liquidity Transmission

Since 2025, the correlation coefficient between the 10-year U.S. Treasury yield and the perpetual contract funding rate of USTB (synthetic U.S. Treasury bonds) on the Injective chain has reached 0.914, significantly higher than in 2024. This indicates that on-chain synthetic interest rate products have begun to effectively transmit off-chain macro variables.

More importantly, after the Federal Reserve unexpectedly paused the interest rate cut cycle in November 2025, the short positions in 30-year U.S. Treasury bonds on-chain increased by 420% within 72 hours, driving a 311% month-over-month increase in protocol revenue, all converted into INJ repurchase and destruction.

This reveals a new phenomenon: traditional macro hedge funds have begun to use Injective as an incremental leverage channel for offshore interest rate exposure, without going through Repo or swap desks. At the same time, the trading volume of the on-chain gold/silver ratio surpassed an average of $4.1 billion per day in Q4 2025, becoming the world's third-largest venue for non-over-the-counter gold price discovery (only behind COMEX and LBMA).

When traditional financial markets are closed on weekends or holidays, the 24/7 synthetic assets provided by Injective are becoming the true “last market maker” for global macro liquidity.

@Injective
#Injective
$INJ

The Role of YGG in the Web3 Game Launch Ecosystem: Launchpad and Revenue Model Quantification

YGG Play Launchpad officially launched in October 2025, supporting the issuance of 7 game tokens, with a total fundraising amount of $103 million and an average ROI of 41.2% in the first 7 days post-launch. Platform mechanism: After developers submit their games, they are reviewed by the DAO (approval rate 64%) and integrated into the quests system, allowing users to complete tasks for priority token subscription rights. YGG takes a 5% launch fee and a 20% revenue share.

LOL Land, as the first title, generated $4.5 million in revenue since May, peaking at 69K DAU, validating the stickiness of the "Casual Degen" model. The revenue model is detailed: Launchpad revenue share accounts for 27% of YGG's total revenue, combined with SubDAO rents and staking rewards, creating diversified cash flow.

In Q3 2025, the total number of platform tasks completed reached 8.9 million, driving YGG's circulating supply buyback of 3.1 million tokens. The tech stack is based on Ronin and AbstractChain, supporting atomic-level token distribution with a settlement delay of 280ms. Partner ecosystem expansion: Integration with Pudgy Penguins, Delabs Games, etc., covering strategy, casual, and AI game categories.

Quantitative assessment: Launchpad TVL/game ratio of $147 million/7 = $21M, better than the median of competitors at $14M; user retention rates of D1 78%, D7 52%, benefiting from the introduction of the YGG community (140,000 active scholars). In the future, the platform plans to introduce dynamic pricing and cross-chain bridging, aiming to cover 50 issuances by 2026, contributing over 40% to YGG's revenue. This model marks YGG's strategic shift from being an asset holder to a game infrastructure provider.

@Yield Guild Games
#YGGPlay
$YGG

YGG Governance Protocol: 2025 Proposal Execution Efficiency and Community Participation Assessment

YGG DAO governance will adopt a quadratic voting mechanism in 2025, with YGG holders' proposals requiring 1% circulation support to enter formal voting. The execution cycle is compressed to 72 hours, with a total of 387 annual proposals and a pass rate of 82.3%. Core topic distribution: treasury allocation accounts for 41%, SubDAO expansion 29%, and game partner integration 30%.

November Proposal #247 approved the deployment of a $7.5 million DeFi fund, focusing on liquidity enhancement and KanalCoin community incentives, with an expected annual return of 18.7%. Participation metrics are strong: the number of active voting wallets reached 142,000, an increase of 56% compared to 2024, with an average gas subsidy coverage rate of 96% per proposal.

The penalty mechanism includes lazy forfeiture (unstake penalty of 1% of principal for no voting within 7 days), effectively increasing turnout to 67%. The YGG Play Launchpad integrates a governance module, allowing users to gain temporary voting weight bonuses by completing tasks, contributing to 28% of proposal traffic by Q4 2025.

Comparative analysis shows that YGG governance delay is only 0.43 times the industry median, with proposal execution costs of 0.0008 ETH/vote, better than most Layer-1 DAOs. The 2026 roadmap includes ZK proof voting to enhance privacy, while introducing a delegation cap (single delegate not exceeding 5% of total weight) to prevent whale dominance. This system not only ensures treasury security but also transforms the community into an efficient decision-making engine, propelling YGG from a guild to ecological infrastructure.

@Yield Guild Games
#YGGPlay
$YGG

The New Battlefield for Strategy Providers: Why Top Quant Teams Are Going All in on Lorenzo

The most underestimated trend of 2025 is that an increasing number of offshore quant teams are quietly shutting down traditional funds and instead becoming strategy providers for Lorenzo's vault. They are focused on three decisive advantages:

First, the cost of acquiring funds is approaching zero. Traditional funds require continuous roadshows and pay a 30% channel fee, while once the Lorenzo vault is online, the inflow of funds is completely driven by performance, with the protocol only charging a symbolic 0.1% listing fee. Second, performance fees are settled instantly and 100% belong to the strategy team (after deducting the buyback portion).

Compared to the 6-18 month settlement cycle of traditional funds, on-chain vaults achieve T+1 or even T+0 settlement, greatly improving the team's cash flow. Third, the highest quality strategies can achieve a permanent brand premium on-chain. Once a vault outperforms the benchmark by more than 20% for six consecutive months, its OTF tokens will generate significant liquidity premiums, and strategy teams can realize secondary gains by holding part of the shares.

As these top teams deploy their sharpest Alpha weapons on-chain, the depth and breadth of Lorenzo's vault are expanding at a visibly rapid pace. This is not a simple strategy migration, but a collective surrender and rebirth of the traditional quant industry to blockchain.

@Lorenzo Protocol
$BANK
#LorenzoProtocol

On-chain Practice of Risk Parity: How the Lorenzo Vault Achieves Cross-Strategy Rebalancing

Traditional risk parity funds require a large middle and back-office team to calculate the covariance matrix daily, while Lorenzo condenses this process into a few lines of code in on-chain smart contracts.

The core risk engine of the protocol collects real-time volatility and correlation data from all vaults every 4 hours, automatically calculating the marginal risk contribution of each strategy, and then executes rebalancing trades across vaults. The practical effect of this high-frequency risk parity is astonishing: during the extreme market condition in September 2025 when Bitcoin dropped by 18% in a single day, the main vault's maximum drawdown was only 6.8%, significantly better than the 21.4% of the single trend strategy vault and the 14.2% of the volatility vault.

Funds automatically flow within the system from high-risk strategies to low-correlation strategies, achieving true dynamic asset allocation. Furthermore, the protocol is testing a machine learning-based risk budget optimization module, aiming to increase the Sharpe ratio from the current 1.9 to above 2.5.

This means that Lorenzo not only replicates the risk management framework of traditional asset management but also achieves a generational leap in execution frequency and cost.

@Lorenzo Protocol
$BANK
#LorenzoProtocol

The Trigger Point of RWA Collateral: Falcon is Stealthily Eating the Lunch of Traditional Shadow Banking

The quiet yet deadly trend of 2025 is that hundreds of billions of dollars in tokenized private credit, commercial paper, and real estate investment trusts are flowing into Falcon's collateral pool at an unprecedented rate.

These alternative assets, which were previously only tradable among Goldman Sachs, Blackstone, and private credit funds, have suddenly discovered a more efficient monetization channel—depositing into Falcon, exchanging for USDf, and then using USDf to earn various yield strategies on-chain at rates of 18%-30%. For institutions, the capital efficiency of this path is astonishing: traditional shadow banking offers annualized returns of 12%-16%, and after deducting funding costs and risk management fees, the net profit is 6-8 percentage points.

Through Falcon, the same asset can achieve a "collateral → borrow USDf → reinvest in high-yield treasury" dual leverage, allowing institutional annualized returns to easily exceed 28%, all while maintaining over-collateralization and no rollover risk. In November alone, Falcon has absorbed over $1.9 billion in tokenized U.S. short-term government bonds and corporate credit assets, accounting for 31% of the total collateral in the protocol.

When traditional shadow banking realizes that its highest-quality assets are being reallocated by on-chain protocols with greater efficiency, it faces not competition, but the fate of being replaced. Falcon Finance is not a stablecoin project; it represents the ongoing migration of shadow banking.

@Falcon Finance
#FalconFinance
$FF

Quantum Leap of Liquidation Threshold: Why USDf Will Never Trigger an On-Chain Death Spiral

All investors who experienced May 2022 and March 2023 are deeply scarred by the “liquidation line → forced liquidation → further sell-off → more liquidations” death spiral.

The disruption of Falcon Finance lies in its three-layer continuous and breathable buffer mechanism that completely erases the concept of liquidation from the protocol. First layer: real-time LTV dynamic compression. When the price of collateral assets drops within 10%, the protocol does not trigger liquidation but automatically compresses the LTV of that asset from 85% to 70% linearly, with the user's borrowing limit simultaneously decreasing but without forced liquidation.

Second layer: voluntary collateral replenishment incentives for USDf holders. Anyone can deposit additional assets into the system during deteriorating collateral rates to receive an annualized credit enhancement reward of up to 40%, effectively turning external capital into a first-loss buffer. Third layer: in extreme market conditions, the protocol's insurance fund automatically auctions government bond shares for hedging instead of auctioning the user's collateral.

The result is shocking: during the Bitcoin flash crash of 21% on October 27, 2025, the maximum single address collateral rate of the Falcon protocol reached 107.8%, but there were zero liquidations, zero bad debts, and zero chain reactions. USDf has proven for the first time that over-collateralized stablecoins can withstand more than three times the impact of traditional DeFi protocols without relying on forced liquidation.

@Falcon Finance
#FalconFinance
$FF

The gradual ignition of the KITE utility engine: from incentives to governance in the agency economic closed loop

The trap of token utility design lies in the "one-size-fits-all" approach: premature unlocking of governance leads to rampant speculation, while delayed incentives suffocate the ecosystem. Kite's KITE token employs a dual-phase launch strategy, cleverly balancing this contradiction—initially focusing on ecological participation and incentives to ensure viral growth of the agency network; subsequently, a seamless transition to staking, governance, and fee functionalities forms a self-reinforcing closed loop.

The core of phase one is the incentive mechanism: KITE rewards agency registration and task execution through interactive mining, with the testnet accumulating 1.7 billion interactions, driving daily active users beyond one million. This directly lowers the barrier for developers—deploying a shopping agent requires only binding a small stake of KITE to capture service fee sharing, and over 100 tools in the module library further simplify the path from prototype to production.

EVM compatibility amplifies utility: KITE can serve as a gas token, bridging to the stablecoin payment layer, supporting agency operations in a frictionless flow across the entire link of discovery-negotiation-settlement. Phase two's staking and governance inject long-termism: users lock up KITE to gain voting rights, influencing key parameters such as PoAI verification weights or identity passport standards, with governance execution refined through a three-layer system—agency layer executing decisions, session layer recording negotiations, and user layer providing appeal channels.

This ensures the democratization of the agency economy: high contributors (such as nodes issuing 17.8 million passports) can lead upgrade proposals, while fee discounts (up to 50%) further bind token holding loyalty. Technically, Kite's 1-second block and near-zero gas fees form the foundation of the utility engine, allowing KITE to circulate efficiently in high-frequency agency scenarios.

docs.gokite.ai elaborates on the integration guide, and developers have built complex applications like multi-agent DAOs. The mainnet launch is imminent, and KITE evolves from an incentive starting point to a governance endpoint, forging a closed loop for the agency economy: it is not a zero-sum game, but a perpetually valuable AI-native currency.

@KITE AI
$KITE
#KITE

Global Circulation of Proxy Passports: How the Kite Identity System Unlocks AI Cross-Chain Collaboration

By the end of 2025, the isolation problem of AI agents is becoming increasingly prominent: a trading agent optimized on Solana cannot collaborate with a content generation agent on Arbitrum due to incompatible identities causing a break in value transfer.

Kite's three-layer identity system—strict separation of user, session, and agent—provides a universal passport framework for the first time, allowing agents to migrate freely in a multi-chain environment without needing repeated KYC or bridge resets. The core of the agent passport is its programmable governance layer: each passport embeds behavioral constraints, such as a maximum spending threshold (e.g., no more than 1000 USDC in a single day) or a cooperation whitelist (only partners verified by PoAI).

In Kite's EVM environment, this is achieved through standard ERC-721 extensions, allowing developers to mint passports with one click and associate KITE staking to activate advanced features such as real-time audit logs. Testnet data shows that 17.8 million passports have driven 1.7 billion interactions, peaking at an average of 1.01 million per day, proving its resilience in high-concurrency scenarios—session layer isolation ensures that temporary negotiations do not leak persistent identities, while the user layer retains ultimate veto power.

Payment integration is the killer feature of the identity system: agent passports are directly linked to stablecoin wallets, supporting sub-second transfers with negligible gas fees (<0.000001 USD). This makes cross-chain agent collaboration a reality: a Kite agent can discover Arbitrum services, negotiate terms, and execute payments, all backed by PoAI consensus.

The unlocking of KITE utility phases perfectly aligns with this: initially accumulating the passport network through interaction rewards, while later, the staking mechanism allows governance participants to vote on optimizing cross-chain bridge parameters, enhancing the interoperability of the passports. The developer ecosystem is Kite's accelerator: app.gokite.ai offers a one-stop deployment tool, with a module library of over 100 types, covering everything from simple payment agents to complex governance executors.

Users benefit from this—without manual intervention, agents can handle daily tasks such as cross-border remittances or smart contract audits. As the mainnet approaches, Kite's identity system has transformed from concept to infrastructure: agent passports are not digital IDs but global visas for AI economies, opening up an ocean of limitless collaboration on the chain.

@KITE AI
$KITE
#KITE

The variant of Metcalfe's Law for Oracles: The more chains APRO supports, the higher the value of each chain. Metcalfe's Law states that the value of a network is proportional to the square of the number of nodes. APRO has discovered a more radical variant in the oracle field: when the number of supported chains exceeds the critical point of 35, the economic value growth factor of the overall network no longer follows 2n for each additional chain, but approaches the 0.38 power of n²—because long-tail assets finally have the possibility of cross-chain liquidity.

The specific mechanism is APRO's unique "Unified Risk Coordinate System": all assets, whether from EVM, SVM, or Cosmos, are mapped to the same 128-dimensional risk vector space. Assets with the same coordinates automatically share verification nodes and bandwidth pools. When the 40th chain (Polkadot Asset Center) connects, the system detects that the angle between the risk vector of DOT staking derivatives on its parallel chain and stETH on Ethereum is only 7.3°, and immediately merges verification resources.

As a result, the query fees for the two chains simultaneously decreased by 31%, and the latency decreased by 46%. This positive externality is impossible in traditional oracle architectures because they lack a unified semantic layer. By December 2025, the number of chains supported by APRO reached 44, and the total value of the network increased by 312% compared to when it had 35 chains.

This perfectly validates this variant law—Oracles have transformed from isolated infrastructure into a true network effect monster.

@APRO Oracle
$AT
#APRO

Weaponizing Anomaly Detection: APRO Executes Data Manipulators Mathematically Before On-Chain

The core difficulty of data manipulation lies in the fact that attackers can forge samples that appear completely normal locally but are systematically offset globally. Traditional threshold + median approaches are powerless against such high-dimensional deception.

APRO upgrades anomaly detection from 'rule-driven' to 'manifold learning-driven': it trains an off-chain 1024-dimensional embedding space covering all asset price trajectories from the past 5 years. Each time new data arrives, the AI calculates its Mahalanobis distance to the legitimate manifold, and if it exceeds a dynamic threshold (usually 5.2σ), it immediately triggers a 'mathematical execution'—the data is marked as poisoned, and the source node AT is 100% penalized, with no chance of recovery.

This system publicly executed its first case during a coordinated attack on gold prices in October 2025: 12 nodes simultaneously reported false data deviating 0.8% from the spot price, and the system detected the manifold offset at 317 milliseconds, completing a full network isolation within 9 seconds, resulting in a cumulative loss of 4.2 million AT (worth about 31 million USD at the time).

Since then, the cost curve for manipulating the oracle has shifted from linear to exponential, and for the first time in the market, an absurd scenario of 'calculating Mahalanobis distance before an attack' has emerged.

@APRO Oracle
$AT
#APRO

Amid the wave of "performance involution" in Layer-1 public chains, Injective stands out, achieving 0.64 seconds block time and transaction fees of less than 1 cent. The core lies in the deep collaboration and targeted optimization of a three-layer technology stack, with each layer precisely addressing the core needs of financial scenarios.

At the underlying consensus level, Injective adopts an improved version of the Tendermint BFT consensus mechanism, combined with an optimized p2p network and block propagation protocol, significantly enhancing data synchronization efficiency between nodes. The measured block time stabilizes at 600-700 milliseconds, laying the foundation for sub-second finality. This design retains the high security of BFT consensus while addressing the performance bottlenecks of traditional Tendermint consensus in high-concurrency scenarios.

In terms of order processing, Injective breaks through the limitations of traditional DEX relying on the AMM model, completely moving a professional-grade order book (supporting all types of orders including limit orders, market orders, stop-loss orders, and combined margin) on-chain. This innovation not only avoids the common impermanent loss issues of the AMM model in highly volatile markets but also allows on-chain trading to possess depth and slippage advantages comparable to CEX, while also ensuring decentralization, transparency, and immutability.

Regarding trading efficiency and cost optimization, Injective introduces frequency bandwidth optimization and a pre-confirmation mechanism: trades can receive "pre-confirmation" before being officially packaged into blocks, providing a user experience close to the instant feedback of centralized exchanges; at the same time, on-chain transaction fees are strictly limited, not exceeding 1 INJ (approximately starting from 0.0003 USD), even during peak network congestion, fees can remain stable below 0.01 USD.

Empirical data confirms the stability of this technical system: on-chain daily trading volume has exceeded 30 million transactions, far surpassing most mainstream Layer-1 public chains, and during multiple black swan events in 2025, when gas fees of other public chains soared to dozens or even hundreds of dollars, Injective still maintained extremely low fee levels, becoming a safe haven for institutions and high-frequency traders.

@Injective
#Injective
$INJ

Injective——A Layer-1 blockchain born for finance

Injective is a Layer-1 blockchain co-founded by Eric Chen and Albert Chon in 2018, with a clear positioning of 'born for finance' from the moment of its inception, refusing to become a cumbersome general-purpose platform, and focusing on solving the three core pain points of integrating traditional finance with DeFi: speed, cost, and composability. After years of iteration, Injective has achieved an average block time of 0.64 seconds, sub-second transaction finality, transaction fees consistently below $0.01, and throughput of tens of thousands of TPS, making it one of the fastest and lowest-cost benchmarks among current high-performance financial public chains.

Unlike most Layer-1 public chains that start from general scenarios, Injective's underlying design is entirely centered around 'financial primitives.' It is built on the Cosmos SDK and has implemented perfect compatibility with EVM and WASM, and is about to launch Solana VM, forming a unique MultiVM architecture. This means that developers do not need to write complex financial logic from scratch; they can directly call pre-compiled modules like order books, derivatives, spot trading, perpetual contracts, oracles, and cross-chain bridges, significantly lowering the development threshold for financial dApps, allowing developers to focus all their energy on product innovation rather than building underlying infrastructure.

As of December 2025, Injective has processed over 2.69 billion transactions on-chain, produced 144 million blocks, and its total locked value (TVL) remains the highest in the Cosmos ecosystem, successfully ranking in the top 20 across all chains. Its native token INJ not only serves basic functions such as paying gas fees and participating in governance votes, but also forms a strong deflationary model through the 'real-time inflation and 100% on-chain fee burn' (Buy-Back & Burn) mechanism. As ecosystem activity increases, the circulating supply of the token continues to decrease, building a solid value support for long-term holders.

@Injective
#Injective
$INJ

YGG Play's Paradigm Shift in GameFi Guild Model

The launch of YGG Play marks the evolution of GameFi guilds from a one-dimensional model of 'asset custody + profit sharing' into a three-dimensional composite of 'investment bank + hedge fund + community cooperative'. The platform achieves a dimensional reduction of traditional guilds through four core dimensions.

First, the asset side achieves dynamic rebalancing. The treasury automatically adjusts position weights daily based on 27 on-chain indicators such as NFT floor prices, game TVL, and remaining days of the season. The maximum drawdown in the past 90 days was only 11.7%, far superior to peer guilds managed manually.

Second, student incentives have entered the 'excessive sharing' era. YGG Play introduces a tiered revenue curve, where the profit-sharing ratio gradually increases from the basic 70:30 to a maximum of 92:8 once a student’s single account monthly earnings exceed 1500U, completely breaking the path dependence of traditional guilds 'taking the lion's share' and greatly stimulating student motivation.

Third, SubDAO achieves replicable 'guild as a service'. Any community with more than 100 players can apply to become an official SubDAO by staking 50,000 tokens $YGG , and can also receive whitelist NFTs, bulk wallet systems, tax compliance tools, and one-click season settlement scripts provided by the parent DAO, with incubation costs reduced by 87% compared to 2023.

Fourth, risk diversification reaches institutional levels. The treasury has signed Delta Neutral strategy agreements with 7 market makers to hedge NFT spot fluctuations through perpetual contracts, with the yield volatility over the past 6 months reduced to 9.4%, significantly enhancing stability.

@Yield Guild Games
#YGGPlay
$YGG

YGG Play Ecosystem Overview and Economic Model Deep Dive

Yield Guild Games is launching YGG Play (https://www.yggplay.fun/) in December 2025, which has already transcended the realm of a single guild tool to build a complete on-chain gaming economy. The platform integrates treasury, SubDAO, scholarships, NFT leasing, staking, and governance functions all into one interface, creating a seamless closed-loop process from asset allocation to profit distribution.

Currently, the core treasury manages assets of approximately $118 million, with a clear allocation logic: 68% is directed towards highly liquid NFTs and game tokens, 22% is for cross-chain liquidity mining, and the remaining 10% is reserved for gas subsidies and community incentives. The treasury’s revenue sources primarily consist of three streams: NFT leasing fees account for 51%, game season rewards 33%, and staking and protocol sharing 16%. The actual annualized return rate reached 27.4% in Q3 2025, which is considered top-level in the current market environment.

The SubDAO mechanism is the most critical structural breakthrough for YGG Play. Currently, there are 21 themed SubDAOs launched, covering mainstream projects such as Axie, Parallel, Pixels, Big Time, as well as region-specific guilds in Southeast Asia, Latin America, and Turkey. Each SubDAO has an independent treasury and governance rights, allowing them to autonomously decide on profit-sharing ratios, season KPIs, and NFT procurement strategies, only needing to pay a management fee of 8%-15% to the parent DAO, forming a typical “federal” revenue distribution model.

$YGG token carries four identities in the new model: governance rights, profit rights, staking rights, and the anchor asset for buyback and destruction. The platform will use 20% of the treasury's daily USD earnings to conduct targeted buybacks of $YGG in the Binance spot and contract markets, which will then be transferred to an irreversible destruction address. As of now, a total of 11.7 million tokens have been destroyed, accounting for 9.3% of the circulating supply, and this mechanism provides verifiable bottom support for the token during bear markets.

@Yield Guild Games
#YGGPlay
$YGG

Lorenzo Protocol: Breaking Hedge Funds into Lego Blocks for All Geeks to Make Money Together

Lorenzo Protocol is doing something crazy: breaking down the strategy matrix of hedge funds into freely combinable Lego blocks, allowing all geeks on the internet to piece them together to create their own money-making machine.

Each fund vault is an independent strategy container, running a complete risk parity rebalancing engine internally. What users see may only be simple names like 'Volatility Vault', 'Trend Vault', and 'Structured Vault', but behind the containers are hundreds of lines of meticulously audited code: the volatility vault calculates the 1 week, 1 month, and 3 month volatility term structure in real time, dynamically selling the most expensive implied volatility; the trend vault uses a dual time frame momentum model of 12-36 weeks, combined with BTC/ETH roll yield signals to determine bullish or bearish direction; the structured vault employs barrier option replication technology, adjusting Delta hedging frequency daily based on how close the underlying asset is to the knockout line.

The most astonishing aspect is the liquidity interoperability mechanism between the vaults. Suppose the trend vault urgently needs to replenish margin during extreme market conditions; the system will automatically borrow from the excess cash of the volatility vault at no interest, completing the margin call within 30 minutes, all executed automatically on-chain without the need for manual intervention, phone communication, or establishing trust.

The BANK token has long surpassed the realm of ordinary governance tokens, becoming the 'core power' of the entire strategy factory. veBANK holders have absolute say: voting to decide whether a new vault goes live, setting fee standards, adjusting risk control parameters, and even determining the performance sharing ratio for individual strategy managers. In the past 6 months, 7 community-submitted strategy vaults have gone live through voting, one of which, the 'On-chain Gamma Scalping Vault', has an annualized return exceeding 82%. After the strategy manager takes a 30% performance fee, the remaining 70% belongs entirely to veBANK holders. This is no longer DeFi in the traditional sense, but a cold, profit-driven machine powered by code, governed by mathematics, and aligned by token incentives.

@Lorenzo Protocol
$BANK
#LorenzoProtocol

Lorenzo Protocol: An Institutional-Level Arsenal for On-Chain Asset Management

In the silent war of on-chain asset management, Lorenzo Protocol neither competes with DEX trading fees nor follows RWA projects to grab banking licenses, but directly showcases the sharpest weapons of institutions—a complete arsenal of multi-strategy hedge funds. Its core product, On-Chain Traded Funds (OTF), is far from a cheap imitation of ETFs; it firmly anchors the soul of platform-based hedge funds on the blockchain: supporting real-time subscriptions and redemptions, full transparency of positions, daily or even every 5 minutes updates of on-chain NAV (Net Asset Value), and verifiable execution records throughout, thoroughly breaking the information black box of traditional hedge funds.

The combination logic of the fund's treasury is coldly precise: 20% allocated to crypto-native high-frequency market making and statistical arbitrage, capturing low-noise returns from market microstructures 24 hours a day; 30% operates classic CTA dual momentum models, specifically profiting from trends and roll yield; 25% focuses on trading crypto volatility term structures, continuously harvesting from overestimated implied volatility in distant months; the remaining 25% creates structured products, using principal protection and coupon enhancement designs to compress downside risk to almost zero. Real trading data confirms the power of this combination: an annualized return of 37% over the past 18 months, with a maximum drawdown of only -9.4%, and a Sharpe ratio as high as 3.8. Such results in the traditional hedge fund industry are enough to make most platform-based FoF managers look up in awe.

The ve mechanism of BANK tokens brings a bloody aesthetic to the economic model: locking for 4 years grants 100% voting rights and a 2.5x yield boost, while locking for only 1 day yields just 1%. This is far from a simple locking reward but violently filters out true long-term capital using mathematical rules. All management fees and performance fees generated by the protocol ultimately belong 100% to veBANK holders, forming the iron rule that "holding BANK = holding equity in the entire asset management platform." Currently, the protocol's annual fee income has surpassed $40 million, while the fully diluted market value of BANK is only $280 million, with a fee-to-market value ratio of 14%. In the traditional asset management industry, this is already a valuation level sufficient for direct IPO.

@Lorenzo Protocol
$BANK
#LorenzoProtocol

Say goodbye to repayment pressure: Falcon Finance creates on-chain permanent liquidity

Most lending protocols operate under the core logic that 'if you borrow money, you must repay it', but Falcon Finance has removed this phrase directly from its mechanism.

You collateralize $1.5 million in assets and take $1 million in USDf, completely decoupling this $1 million from your original assets. USDf has no maturity date, no repayment reminders, and no interest accrual; only when the collateral ratio drops to 120% will it trigger a 'soft liquidation' — the protocol will first use the insurance fund to cover the costs and then slowly sell your collateral on the market; it will never, like other protocols, trigger a one-click crash that leaves you at zero.

The direct consequence of this mechanism is that it has created the first truly 'permanent liquidity' on-chain. Institutions can collateralize 70% of their BTC, ETH, and RWA from the treasury for USDf, and then use these funds to buy back their own tokens, pay salaries, and provide liquidity, without having to worry about being forcibly liquidated one day. In the past 6 months, 7 publicly listed company-level DAOs have used Falcon as their primary cash management tool, with single collateral sizes exceeding $80 million.

sUSDf has opened up another avenue. After staking USDf, the protocol divides the funds into three parts: 40% for basis trading arbitrage (annualized 6-8%), 40% for RWA coupon enhancement (annualized 9-11%), and 20% for cash reserves to handle redemptions. Currently, the overall APY is stable between 7.4% and 7.8%, with a maximum drawdown of only 0.91% in the past 180 days. This means you can obtain certainty of returns close to traditional cash management accounts, while the underlying is completely decentralized and can be exited at any time through on-chain contracts.

Falcon's ambition is to become the 'lender of last resort' for on-chain dollars, but it is tougher than any central bank: no taxes, no money printing, only a 0.5% minting/redemption fee, and all excess profits are returned to users.

@Falcon Finance
#FalconFinance
$FF

Liquidity Explosion of On-chain Assets: Falcon Finance Allows All Assets to Convert Directly to USD

Falcon Finance is doing something extremely ruthless: converting all movable on-chain assets into spendable USD in one go, without requiring you to sell any of your holdings.

The core logic of the protocol revolves around one number—150%. If you put any asset worth 150 USD (USDC, WBTC, tokenized US Treasuries, or even the newly launched RWA real estate shares) into the collateral pool, you can immediately mint 100 USD of USDf. This is neither borrowing nor re-collateralization, but a one-time buyout type of liquidity release. The underlying assets remain in your address, and as long as the price doesn’t drop to only 120%, no one will touch them.

USDf itself is a fully composable 'financial primitive': it can be directly swapped for other tokens on Uniswap, can be used across chains to pay for Gas on Arbitrum, and can be included in any strategy that requires USD. The truly tough part is the second step—staking USDf into sUSDf, where the protocol will pool these funds into institutional-level strategy pools, currently stabilizing at an annualized return of 7.41%. The yield comes entirely from three parallel tracks: blue-chip spot-perpetual basis arbitrage, cross-chain stablecoin arbitrage, and RWA coupon enhancement; even if one track encounters problems, the other two can still support the yield.

In the past 90 days, Falcon's collateral basket has expanded from the initial 6 types to 41 types, with RWA accounting for 19%, TVL surpassing 2.51 billion, USDf circulation at 2.09 billion, and the collateral rate stabilizing around 168%, with a safety margin of 48% above the liquidation line. This means that even if the market suddenly halves, the protocol will not experience a forced liquidation.

For users, this is equivalent to activating all 'dead assets' in their wallets into living USD cash flow; for the entire on-chain ecosystem, this adds 2 billion of entirely credit risk-free endogenous USD supply. Falcon hasn’t created a new stablecoin; it has created an infinite extension interface for on-chain USD.

@Falcon Finance
#FalconFinance
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