Lorenzo Protocol Launches USD1+ OTF on Mainnet

We’re excited to announce that USD1+ OTF — our flagship On-Chain Traded Fund (OTF) — is now live on BNB mainnet and ready to receive deposits, offering a targeted first-week APR of up to 40%.

This marks a major milestone: the first product built on our Financial Abstraction Layer (FAL) to transition from a successful testnet to full production.

USD1+ OTF tokenizes a diversified, triple-source yield strategy that combines Real-World Assets (RWA), quantitative trading, and DeFi opportunities. Fully on-chain from funding to settlement, the product provides seamless access to institutional-grade yield for all users.

Visit USD1+ OTF Now: https://app.lorenzo-protocol.xyz/otf

In this blog, we’ll break down how USD1+ OTF works, the mechanics behind its yield, and how to participate.

At A Glance: Key Features Summary

Triple Yield Engine
Combines tokenized RWAs, quantitative trading, and DeFi strategies to deliver passive, stable, transparent real yields.

sUSD1+ Token
After depositing, the user will receive an sUSD1+ token, which is a non-rebasing, yield-bearing token representing fund shares. The redemption value increases over time, while your token balance remains constant.

Fully On-Chain & USD1-Settled
From funding to settling, USD1+ OTF is built for DeFi composability with seamless on-chain execution and redemptions settled exclusively in USD1 — the stablecoin issued by World Liberty Financial.

Accessible & Secure
Subscribe with ≥ 50 USD1, USDT, or USDC. All assets are deployed through professionally managed strategies with institutional-grade infrastructure and secure custody.

About USD1+ OTF

USD1+ OTF is our flagship yield product designed to deliver institutional-grade yield in a user-friendly, on-chain format for stablecoin holders.

Unlike many typical stablecoin wrappers, it puts your capital to work in a professionally, actively managed quantitative trading yield strategy — historically available only to institutional players with access to advanced centralized infrastructure and deep capital. Now, through a simple deposit, anyone can access this level of performance without managing the strategy themselves.

USD1+ OTF is ideal for:

• Stablecoin holders — both individuals and institutions — seeking predictable, passive income
• Risk-conscious investors prioritizing capital preservation and reduced volatility
• Users interested in accessing advanced market-neutral crypto strategies without having to manage execution themselves

Whether you’re looking to earn or integrate yield into your product, USD1+ OTF brings institutional execution into a composable DeFi-native experience.

Yield Strategy Overview

The USD1+ OTF generates returns through a triple-yield strategy, deriving yield from quantitative trading, RWAs, and DeFi returns.

1. RWA Yields

The strategy utilizes RWAs, primarily tokenized U.S. Treasury assets, as collateral to enhance capital efficiency and deliver additional returns. As part of this, we will integrate USDO, a yield-bearing stablecoin backed 1:1 by short-duration U.S. Treasuries and issued by OpenEden. USDO enables on-chain access to compliant, transparent, and real-world fixed income, further reinforcing the foundational stability of our yield model.

2. CeFi Delta-Neutral Basis Trading

At the core of the OTF is a professionally managed basis trading strategy — a market-neutral approach widely adopted by institutional quantitative desks. In executing the strategy, the system:

• Takes a long position on the spot asset
• Simultaneously takes a short position on its perpetual future
• Captures the funding rate spread as the two prices converge

This approach has historically delivered consistent, low-volatility returns and is widely employed by quantitative desks across centralized exchanges. It does not require any active management by USD1+ OTF depositors.

Across 2021–2025, the delta-neutral strategy achieved:

• Maximum drawdown (MDD): -0.48%
• Overall Sharpe ratio: 8.09
• Overall return: 94.56%
• Annual Percentage Yield (APY): 25.78%

3. DeFi Returns

At launch, users will receive sUSD1+, a non-rebasing, yield-accruing token that can be redeemed based on NAV. In future phases, sUSD1+ will be supported in DeFi protocols, enabling users to earn additional yield through integrations. Similar to the ecosystem groundwork we laid for $stBTC, which is now integrated with over 30 protocols across more than 20 chains, this foundation paves the way for sUSD1+ to achieve strong cross-chain composability.

Strategy Security & Fees

To safeguard your deposits, funds are held in a secure custody account and mirrored on a centralized exchange, where a professional quantitative trading team executes the yield strategy.

All trading activity takes place off-chain under institutional-grade custody and rigorous operational controls.

Lorenzo does not charge fees for user deposits and withdrawals. Yield is distributed net of protocol and execution service fees. USD1+ OTF yield is variable and subject to change. Past performance is not indicative of future results.

How To Participate

To get started with USD1+ OTF on mainnet:

• Visit the Lorenzo dApp: https://app.lorenzo-protocol.xyz/otf
• Connect your wallet and deposit whitelisted stablecoins (USD1, USDT, USDC)
• Receive sUSD1+ shares proportional to the current unit value — hold to accrue yield

Deposits & Value Accrual

Users can gain exposure to USD1+ OTF by depositing a minimum of 50 USD1, USDT, or USDC through the Lorenzo OTF interface. Upon deposit, users receive sUSD1+, a non-rebasing, yield-accruing token that represents shares in the fund.

As the strategy earns yield, the Unit NAV (net asset value per share) of sUSD1+ increases, while the number of tokens in your wallet remains fixed. For example, a $1 million deposit yields 1 million sUSD1+ shares. If the unit value rises to $1.20, those same shares can be redeemed for $1.2 million USD1.

Redemption Process

Users can submit a withdrawal request at any time without restrictions. Requests are reviewed and processed on a rolling cycle system that follows the protocol’s operational cadence.

Each week, the system reviews requests from the previous cycle.

As a result, users can expect to withdraw their funds in as little as 7 days, and at most 14 days, depending on the exact timing of the request.

Redemption Process Example:

Let’s say a new cycle begins on Day 1:

• You submit a withdrawal request on Day 3.
• Lorenzo processes your request at the end of cycle 2 (Day 14), and you receive your payout by Day 15, within 24 hours of processing.

Important: Your final redemption amount is based on the Unit NAV on the actual processing day, not the date of your request. Because NAV fluctuates with market activity, your final payout may differ slightly from the estimate shown at submission.

This redemption model ensures consistent accounting, fair treatment for all users, and reliable coordination with off-chain trading activity. It also helps safeguard system integrity by discouraging short-term opportunistic behavior.

When redemptions are executed, sUSD1+ is automatically converted into USD1. All stablecoins involved in the USD1+ OTF strategy are unified into USD1 upon payout, providing a clean and seamless user experience.

Looking Ahead: Expanding On-Chain Wealth Management

USD1+ OTF now serves as the cornerstone of our vision to become a premier on-chain investment bank for both institutional and retail users. Moving forward, team Lorenzo is accelerating its roadmap to bridge vast on-chain liquidity with professional investment tools. We’re developing additional tokenized funds spanning DeFi, quant strategies, regulated assets, and RWAs.

We believe deeply in financial freedom and respect World Liberty Financial’s mission to make USD1 the most secure and robust stablecoin on the market. As Lorenzo launches more yield products, we’ll continue to deepen our commitment to the USD1 ecosystem, ensuring that all USD-based strategies settle exclusively in USD1 to streamline the user experience and reinforce trust across every transaction.

Visit USD1+ OTF mainnet — https://app.lorenzo-protocol.xyz/

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.

Risks Reminder
Investors in the USD1+ OTF should be aware that all investments involve risk, and there is no guarantee that the product will achieve its investment goal. Prospective investors are encouraged to review all product details carefully.

External events such as macroeconomic shifts, regulatory changes, and counterparty risks could introduce unforeseen challenges to the strategy’s effectiveness. As a result, despite efforts to mitigate market exposure, the OTF remains subject to potential drawdowns, and investors should be aware that past performance does not guarantee future results.

In the event that any assets received by the OTF are identified by a centralized exchange (CEX) or law enforcement as potentially compromised or associated with illicit activities — such as being flagged for involvement in financial crimes, unauthorized transactions, or law enforcement investigations — Lorenzo is obligated to cooperate with the relevant authorities, including the CEX and law enforcement agencies. This may include implementing necessary measures to monitor, restrict, or freeze the affected assets in accordance with applicable laws and regulations. As a result, there is no assurance that investors will be able to recover such assets.

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.