This brings us to the essence of traditional asset management - who makes the decisions and whether those decisions can be trusted in the long term.

What has been done in on-chain finance over the past decade ultimately comes down to "completely handing over decision-making power to individuals": you choose whether to enter the market or wait and see, which liquidity pool to select, when to adjust your position, whether to stop-loss, and whether to chase highs. Returns have become a direct reflection of personal judgment.

In the early days, this was an advantage, granting a great deal of flexibility. However, as more money came in, this logic began to unravel—individual decision-making couldn't be replicated, audited, or scaled, let alone what long-term trust means.

There is now a protocol addressing this issue. What it aims to do is shift the decision-making power of profit generation from "personal judgment" to a "structured system." This is not an automation tool, but rather a prototype of a "capital allocation body."

What is a capital allocation system? It is neither a product nor a specific strategy, but a system framework that can continuously allocate capital, manage risks, and generate returns without human intervention.

Traditional finance has been doing this for a long time: the index system has been operating for over a hundred years, pension asset allocation models have supported the retirement of several generations, and the duration allocation of university endowment funds and insurance funds follows the same logic. These systems have a common point - they do not rely on the wisdom of a single genius, but rather on a set of structures that have been validated over the long term.

There has never been such a thing on-chain. Until now. Lorenzo has begun to attempt to move the concept of "automated capital allocation entity" onto the blockchain. This could be a turning point in the evolution of on-chain finance.