The core of Chaoshan money houses is to “keep the money of one’s own people within the bank”, thus achieving absolute internal circulation of funds and accumulation of value. The development path and cultivation system of BNB Chain also seem to be moving in this direction.

"From asset issuance to trading to leverage, everything is integrated within the ecosystem" is the cornerstone of this model. Binance leverages its position as a universal CEX to attract retail users and capital from around the world, particularly in Asia. Then, through a series of design measures, it ensures that these funds and user activity remain largely within the BNB Chain ecosystem under its control, forming a powerful closed value loop:

• Entry (Deposit Absorption): Users deposit funds through Binance CEX, purchase BNB to participate in Launchpad/Holder airdrop/trade/deposit and withdraw.
• Asset issuance (value transfer): Platforms such as Four.Meme act as “asset factories,” continuously producing new Meme coins and providing speculative targets for funds within the ecosystem.
• Trading (Exchange/Circulation): PancakeSwap, as the "central market" within the ecosystem, undertakes almost all trading needs, and transaction fees and other values are captured on-chain.
• Leverage (credit expansion): "Orthodox" projects such as Aster and Lista DAO provide lending and staking services, allowing the existing funds in the ecosystem to be amplified, further boosting trading activities and accelerating capital circulation.

This process is like a money house. After absorbing deposits, it does not invest them in the external market, but instead lends, invests, and trades internally. All profits and value generated remain within the system, ultimately pushing up the value of the entire ecosystem (and $BNB).

Reference for discussion of Chaoshan money houses: https://x.com/agintender/status/1930854170988597557

1. Three-layer funnel structure of absolute internal circulation and value accumulation

First layer: traffic entry and asset issuance (Four.Meme)

The core role of Four.Meme is to serve as a "factory" for traffic entry and asset issuance.

Industrialized Asset Issuance Platform: Pump.fun pioneered the meme launch platform model, and BNB Chain has industrialized it through platforms like Four.Meme. This means BNB Chain has established an efficient, scalable "production line" capable of continuously producing new meme token assets. This continuous "new product launch" capability is key to attracting speculative and high-return retail users, driving a steady stream of traffic and attention to the entire ecosystem.

An engine for capturing retail users: BNB Chain's core user profile is a vast global retail user base, particularly in the Asian market. Meme's low barrier to entry, high volatility, and community-driven nature perfectly align with the preferences of this user group. Therefore, supporting platforms like Four.Meme is equivalent to controlling the core engine for attracting and converting these users.

Second layer: fair price and value anchoring (Aspecta.ai)

Aspecta.ai, as a price oracle (one of Aspecta's features), serves as the "yardstick" of the entire DeFi ecosystem. All leverage and lending activities (such as those conducted on Lista) rely on fair prices provided by the oracle to calculate collateralization ratios and trigger liquidations. If leverage is the "accelerator," then the price oracle is the "dashboard" and "brake." By supporting its own oracle, Binance ensures the reliability and consistency of the ecosystem's most important fundamental data sources, avoiding the risks of data manipulation or single points of failure that can arise from relying on external oracles. This is like a "bank" having its own dedicated and absolutely trusted asset appraiser, ensuring the accuracy of all collateral valuations, which is the cornerstone of the stability of the entire credit system.

Layer 3: Core Leverage and Financial Infrastructure (Aster, PancakeSwap, Lista)

If Four.Meme is the "front door" that attracts users, then Aster, PancakeSwap and Lista are the "core halls" that carry these users and funds to carry out in-depth economic activities.

1. PancakeSwap: Liquidity and Trading Core. As the dominant DEX on BNB Chain, PancakeSwap is the liquidity center of the entire ecosystem. All assets issued through Four.Meme must ultimately be traded and provide liquidity on PancakeSwap. It is not only a trading venue but also a key indicator of ecosystem activity. Controlling PancakeSwap means controlling the lifeblood of asset pricing and liquidity within the ecosystem.
2. Aster Dex & Lista DAO: Direct Providers of Leverage

• Aster Dex is a rapidly growing decentralized contract trading platform. Its total locked value (TVL) surged 570% to $2.34 billion in a short period of time. This, combined with recent incentivized trading activity, has directly driven growth in the number of active addresses on the BNB Chain.
• Lista DAO lending is the most direct and core leverage tool in DeFi. Lista provides financial support to the ecosystem by providing the stablecoin lisUSD. Stablecoins are the foundational building blocks of DeFi, enabling all complex financial activities such as lending, leveraged trading, and derivatives.

2. Wealth Amplification Cycle: The Complete Path from $1 to $n

This cycle clearly demonstrates how the various products work together and in tandem to amplify the initial capital. (Using revolving loans as an example)

Step 1: Invest

You have $1 and are attracted by Four.Meme's new project.

Use this $1 to buy the Meme asset you like on PancakeSwap.

Step 2: Staking

Deposit your Meme assets (or other assets such as BNB) into Lista DAO or Aster as collateral.

Step 3: Valuation

Aspecta.ai (price oracle) instantly provides a fair valuation for the collateral and tells Lista/Aster how much your assets are worth and how much you can borrow.

Step 4: Borrowing

Based on Aspecta.ai's valuation, a certain amount of stablecoin lisUSD (e.g., worth $0.6) was successfully borrowed from Lista DAO.

Step 5: Reinvest/Amplify

Invest the borrowed lisUSD stablecoins back into PancakeSwap/Aster to buy more of the same Meme assets or open contracts, or other new assets that you are optimistic about.

Result: You initially invested only $1, but now hold assets worth $1.6. You have completed your first round of leverage. (Aster can leverage even more.)

Loop ➔ $n

As long as the price of the collateralized asset rises, the amount available for borrowing will increase. Participants can repeat steps 2 to 5, continuously expanding their positions, and eventually theoretically expanding the initial $1 to $n (while also increasing the risk).

This three-layer structure creates a powerful flywheel effect:

Four.Meme (entry) ➔ PancakeSwap/Aster (trading) ➔ Aster/Lista (leverage) ➔ PancakeSwap (reinvestment)

Aspecta.ai is the "value cornerstone" that runs through the entire system, ensuring that the entire leverage system does not collapse. Through this sophisticated collaborative design, BNB Chain has created a highly efficient capital amplification machine for retail users.

3. Strategic Intention: Why must we take the leverage into our own hands?

Binance cultivates these projects as its "legitimate descendants" because it must keep the core financial control of the ecosystem - especially leverage - in its own hands.

Risk management and system stability: "It's easy to get into trouble when a margin call occurs" is key. Leverage is a double-edged sword: it can accelerate booms, but it can also trigger chain liquidations during market downturns, leading to systemic collapse. By supporting "individual" lending, stablecoin, and contract trading projects with leveraged properties like Aster and Lista, Binance can gain a deeper understanding of the ecosystem's leverage levels and risk exposure. This gives it the ability to intervene and coordinate in extreme situations, preventing the collapse of third-party protocols from causing devastating damage to the entire BNB Chain.

Accelerating the Flywheel Effect: Leverage is an amplifier of ecosystem growth. Users can pledge their assets on Lista, borrow stablecoins, and then purchase new Meme tokens or other assets on PancakeSwap. Or, they can open positions with nx leverage on Aster. This process greatly improves capital efficiency, creating more purchasing power out of thin air, thereby boosting trading volume, TVL, and network activity. This allows the "Binance flywheel" to spin at an even faster pace, further enhancing the ecosystem's prosperity.

Closed Value Loop: By ensuring that core processes such as asset issuance, trading, and lending are completed by "authentic" projects within the ecosystem, Binance can ensure that the vast majority of value (such as transaction fees and lending interest) is deposited within the BNB Chain, ultimately feeding back the value of $BNB and forming a closed business loop.

Binance's strategy is to build a vertically integrated financial ecosystem:

Using Four.Meme as the engine for asset issuance, we continuously create the "fuel" to attract retail users; then through core infrastructure such as PancakeSwap, Aster and Lista, we provide these users and funds with a place to trade, settle and leverage, thereby maximizing the economic vitality and system stability of the ecosystem.

4. Centralized Trust and the “Patriarch” Role

Underground banks rely not on external laws but on the credibility of key figures. The operation of BNB Chain is also highly dependent on the implicit endorsement and strong intervention of Binance, the "head of the family."

BNB Chain's decentralization has been criticized for its small number of validator nodes and its perceived close ties to Binance. However, this centralization has, to some extent, become an advantage in attracting retail investors:

• Reputation is a guarantee: Projects choose to develop on BNB Chain, and users choose to trade on it, largely out of trust in the Binance brand. Investment from Binance Labs or selection for the MVB program acts like a banker's seal of approval, significantly reducing the cost of trust for users.
• Strong intervention to ensure safety: The most typical example is the 2022 BNB Chain suspension due to a cross-chain bridge attack. From the perspective of decentralized fundamentalism, this is unacceptable. However, from the perspective of "bank" logic, this is the "family head" taking drastic measures to protect "family" assets in a crisis and prevent a run or collapse. This practice sacrifices the principle of decentralization while catering to the simple demand of retail investors for fund security.

5. High efficiency, low barriers to entry, and specific community services

Underground banks exist because they are faster, more flexible, and more understanding of the needs of their own people than traditional banks. BNB Chain's success is also due to its precise service to a specific group: cost-sensitive global retail traders.

Extreme cost and speed advantages: During the 2020 DeFi summer, BNB Chain offered extremely low transaction costs and fast confirmation times compared to Ethereum's high gas fees. This is crucial for Meme/DeFi operations, which require high-frequency, small-amount, and rapid inflows and outflows. It's like a moneylender, bypassing the cumbersome banking process and providing the most direct and efficient service.

Serving a Specific Cultural Community: BNB Chain's rise is closely tied to the participation of Asian communities, particularly the Chinese-speaking community. It has successfully provided a "perfect breeding ground" for the explosion of Chinese memes, precisely catering to the needs of this vast community, from cultural resonance (such as the "Binance Life" meme) to trading habits. This is similar to how Chaoshan money houses serve the Chaoshan merchant community, building on a natural foundation of culture and trust.

summary

Comparing the BNB Chain model to a "Chaoshan underground bank" isn't meant to be derogatory, but rather offers insight into the essence of its business model. It reveals a truth: BNB Chain's prosperity isn't the result of a purely decentralized, bottom-up organic ecosystem, but rather a highly efficient on-chain economy meticulously orchestrated and tightly controlled by Binance, achieving an internal circulation of capital and value.

While this model deviates somewhat from the decentralized nature of the crypto world, it has undoubtedly been extremely successful commercially. It satisfies the core needs of the vast majority of retail users in a pragmatic way: low cost, high efficiency, and the trust and reliance on a trusted provider in a chaotic market.

Beneath human nature and above the mechanism is life.