Lorenzo Launches USD1+ OTF on BNB Chain Testnet: First Tokenized Yield Product with Institutional Strategies
The tokenization of financial products is quickly emerging as a core trend in on-chain finance. As a crypto-native investment management…
The tokenization of financial products is quickly emerging as a core trend in on-chain finance. As a crypto-native investment management platform, Lorenzo is actively exploring one of its most impactful segments — the tokenization of income-generating financial products. Our goal is to bring real, sustainable institutional strategies on-chain, giving users secure and efficient access to yield.
As a first step in this direction, we’re excited to launch USD1+ OTF, now live on the BNB Chain testnet. This yield product draws on returns from RWA, CeFi quantitative strategies, and DeFi opportunities, offering a diversified on-chain solution for institutional capital.It enables strategies to be tokenized, funded, and deployed on-chain with greater efficiency and transparency.
USD1+ OTF is just the beginning. Lorenzo aims to become a leading tokenized fund issuer — bringing institutional yield strategies on-chain, enabling fund issuance and circulation, and building the infrastructure layer for institutional wealth management in crypto.
View USD1+ OTF: https://app-testnet.lorenzo-protocol.xyz/otf
The USD1+ OTF integrates RWA, CeFi quant trading strategies,and DeFi returns, designed to deliver passive, stable and transparent real yields to stablecoin holders through a standardized tokenized fund structure.
The OTF is denominated in and settled through USD1 — a trusted and rapidly adopted stablecoin issued by World Liberty Financial. Moving forward, all USD-based strategies on Lorenzo will standardize settlement in USD1 — helping unify the user experience and strengthen the broader USD1 ecosystem.
In this article, we’ll explore the OTF concept and USD1+ product, yield strategy details, and how you can participate. Let’s get started.
OTFs: The Basics
OTFs are Lorenzo’s core product for tokenizing yield-bearing funds (OTFs), a key category within the broader yield product tokenization space. Like ETFs in traditional finance, OTFs package multiple yield-generating strategies into a single, tradable asset — but in a fully on-chain, composable format.
By tokenizing funds, Lorenzo enables traditional yield strategies to raise capital on-chain, provide passive income to stablecoin holders, and seamlessly integrate with DeFi, unlocking greater transparency and liquidity for institutional products.
About The Product
USD1+ OTF is the first On-chain Traded Fund (OTF) issued by Lorenzo, built on the Financial Abstraction Layer and currently piloting on BNB Chain testnet. It aggregates returns from real-world assets (RWA), CeFi quant trading and DeFi protocols. All yields are fully settled in USD1 and packaged into a single on-chain financial product.
Strategy Overview: Triple Yield Source
The strategy combines three major sources of return:
- Real-World Asset (RWA) yields, the strategy utilizes Real-World Assets (RWA), primarily tokenized U.S. Treasury assets, as collateral to enhance capital efficiencyThe. This approach ensures that idle collateral is actively deployed to generate additional yield, further optimizing overall returns.
- CeFi quantitative trading yields, generated through delta-neutral strategies on centralized platforms
- DeFi yields, including returns from lending and liquidity mining on-chain etc
Users can deposit whitelisted stablecoins (USDC, USDT, USD1) to subscribe to the fund and receive sUSD1+, a non-rebasing, yield-accruing token.
Reward-bearing Token: sUSD1+
Users can deposit whitelisted stablecoins (USDC, USDT, USD1) to subscribe to the fund and receive sUSD1+, a non-rebasing, reward bearing token.
Key Features of sUSD1+:
- USD-based stablecoin yield product: sUSD1+ reflects the performance of a USD-denominated yield strategy, with all returns settled in USD1 for stability and consistency.
- Reward-bearing mechanism: The token’s quantity stays fixed in the user’s wallet, while its price gradually increases to reflect accumulated yield.
- Unified USD1 settlement: Upon withdrawal, sUSD1+ is redeemed into USD1, establishing USD1 as the standard settlement currency across Lorenzo’s ecosystem.
How To Participate
👉 Click here Quick step-by-step guide to help you join the Lorenzo sUSD1+ testnet.
Risks Reminder
The USD1+ OTF is best for users seeking predictable, passive yield and stablecoin holders who want exposure to institutional yield strategies.
Before you participate, please consider:
- Yield performance will fluctuate and is not guaranteed. Past performance is not indicative of future results.
- Net Asset Value may fluctuate based on strategy performance and market conditions.
- Redemptions follow a fixed-cycle schedule, which may vary slightly over time, and are not instant.
Looking Ahead
Lorenzo aims to become a key bridge connecting large on-chain capital with institutional-grade investment products, building a professional institutional investment infrastructure within the BNB ecosystem.
By innovating in the tokenization of yield products, Lorenzo not only provides new pathways for capital raising but also seamlessly integrates these yield-bearing tokens into a rich DeFi ecosystem, unlocking broader use cases for users. Investors holding OTF tokens will benefit from diverse on-chain financial services such as trading, collateralized lending, and interest rate derivatives, significantly enhancing asset liquidity and utility.
Moving forward, Lorenzo plans to continuously expand its tokenized fund offerings, covering DeFi, quantitative strategies, regulated funds, and Real-World Assets (RWA), building an on-chain investment bank tailored for institutional investors, and advancing on-chain wealth management toward greater professionalism, efficiency, and transparency.
Have more questions? Check our full FAQ directly on the dApp page for details.
About Lorenzo Protocol
Lorenzo Protocol is an institutional-grade on-chain asset management platform that tokenizes and integrates CeFi financial products into the DeFi ecosystem.
Powered by its core system, the Financial Abstraction Layer (FAL), Lorenzo connects on-chain capital to a broad range of off-chain financial strategies, such as staking and quantitative trading. To do so, Lorenzo packages the strategies into an On-Chain Traded Fund (OTF), which, like a traditional ETF, provides users access to sophisticated yield strategies via tradable tickers. For institutional financial products, OTFs implement a direct path to a cycle of on-chain fundraising, off-chain execution, and on-chain settlement.
Lorenzo provides the yield infrastructure behind Neobanks, Payment Finance, Wallets, PayFi, RWAFi, DeFAI, and other financial access products, enabling them to integrate sustainable on-chain real yield into their services at scale, enhance user engagement, and deliver institutional-grade financial products to a global audience.
For more information, please visit and follow the regular updates on the Lorenzo Protocol website, X (Twitter), Medium, Telegram, and Discord.
Disclaimer
USD1+ OTF is a tokenized financial product built on Lorenzo Protocol’s infrastructure. It is not a bank product and is neither FDIC-insured nor backed by any government entity. The product is designed to offer exposure to a market-neutral yield strategy; however, yields are variable and subject to change. Past performance is not indicative of future results.
Redemptions submitted through the Lorenzo dApp are processed on a target biweekly settlement cycle, coordinated with the strategy execution team. Actual timing may vary depending on operational or market conditions. Token prices may fluctuate based on market liquidity and may not always reflect net asset value (NAV) in real time.
Yield is delivered via NAV appreciation and is distributed after deducting protocol service fees and strategy execution fees. Lorenzo Protocol does not manage user funds and is not responsible for the performance of any underlying strategy.
Access to this product may be restricted in certain jurisdictions in accordance with applicable regulations.
