The traditional hedge fund's 2/20 fee model is, to put it bluntly, relying on information asymmetry to cut leeks. 2% management fee + 20% performance fee is only a bright number, plus various channel fees, custody fees, audit fees and other hidden costs, the income received by investors is directly cut by 40-50%. But now, an on-chain protocol called Lorenzo Protocol has completely turned this gameplay upside down.

Lorenzo's rate structure is simple and crude: 1.2% management fee + 15% performance fee. The key is the distribution mechanism - the 1.2% management fee goes to veBANK holders, the 15% performance fee is 30% for strategy developers, and the remaining 70% goes to veBANK holders. Converted? The actual cost borne by investors is only 0.84%+10.5%, which is less than a quarter of that of traditional funds.

Even more ruthless is transparency. The annual report of traditional funds is 200 pages at every turn, full of nonsense and vague words. What about Lorenzo? One line of code can be checked: how much money was made today, which strategy contributed, how much the developer shared, how much veBANK holders shared, and how much the insurance fund increased - the whole chain is open and zero.

The data is more convincing. Lorenzo's current TVL has reached $1.64 billion, and the annualized fee income is $246 million, which is accurately distributed to 27,000 veBANK addresses. Average annualized rate of return of lock-ups? 89%。

This creates a fatal problem: when the income from holding protocol tokens far exceeds the investment protocol product itself, the last fig leaf of the traditional asset management industry is gone. Investors don't need a fund manager at all, they just need to directly hold the "on-chain asset management company" that is more profitable than the fund.

Lorenzo is not doing DeFi innovation. It is using blockchain to drain the profit pool of the entire asset management industry.