- USD1+ OTF blends RWA, CeFi, and DeFi to generate stable, diversified passive income
- Yield from sUSD1+ comes via price appreciation, not rebasing or token inflation.
- The fund settles in USD1, supporting stable, institutional-grade finance tools.
On-chain asset management firm Lorenzo has introduced its first On-chain Traded Fund (OTF) named USD1+ OTF. The product is currently live on the BNB Chain testnet. This OTF integrates income from Real-World Assets (RWA), centralized finance (CeFi), and decentralized finance (DeFi). All generated yield is settled in USD1, a stablecoin issued by World Liberty Financial. The launch represents a key milestone in Lorenzo’s roadmap for institutional-grade on-chain investing.
USD1+ OTF is designed to aggregate diversified yield from multiple sources. The strategy includes tokenized U.S. Treasury collateral, delta-neutral trading on centralized platforms, and on-chain lending protocols. Users receive sUSD1+, a reward-bearing token that reflects the OTF’s performance. The token is non-rebasing and accrues yield through price appreciation. Upon redemption, users receive USD1 as the settlement currency.
Triple-Yield Income Strategy
USD1+ OTF combines three distinct yield sources. RWA yields are derived from tokenized U.S. Treasury assets. These assets are used as collateral to improve capital efficiency. By actively deploying idle collateral, Lorenzo increases potential returns.
CeFi yields come from delta-neutral trading executed on centralized exchanges. These strategies aim to reduce market risk. DeFi yields include lending and liquidity mining across on-chain protocols. The combined income streams form a diversified return profile. All yield components are denominated and settled in USD1.
The strategy is structured to offer yield with managed volatility. However, yields are not guaranteed. Users are advised to evaluate market and strategy risks. NAV (Net Asset Value) is updated based on strategy results and market movements.
Participation and Token Mechanics
To join the testnet, users must acquire USD1 testnet tokens. They also need BNB testnet tokens for gas fees. Supported wallets include MetaMask, Trust Wallet, and OKX Wallet. Minimum deposit stands at 50 USD1. Depositors receive sUSD1+ tokens based on NAV at the time of deposit. Token quantities in the wallet remain fixed, while token value increases with accrued yield. The pricing mechanism enables transparency and stable accounting.
Withdrawals convert sUSD1+ back to USD1. Redemptions follow a scheduled cycle and are not instant. All returns are consolidated into a single settlement currency, reinforcing USD1 as the core asset in Lorenzo’s ecosystem.
Users must accept AML and risk terms before investing. After wallet verification, sUSD1+ tokens appear in the user dashboard. The product is tailored for stablecoin holders seeking passive, yield-generating exposure.
Scalable Institutional Infrastructure
Lorenzo is positioning its platform for institutional adoption. USD1+ OTF is part of its broader vision to tokenize traditional and digital financial products. By creating on-chain fund structures, Lorenzo supports scalable and efficient asset management.
Its goal is to bridge large on-chain capital with institutional-grade products. The integration of RWAs, CeFi, and DeFi enhances yield opportunities. Future token offerings may cover more funding types and strategies. These may include regulated securities, DeFi indexes, and quant-driven funds.
The use of USD1 as a uniform settlement asset improves ecosystem cohesion. It enables seamless integration with DeFi tools, including collateral lending and interest rate products. These features are expected to enhance asset utility and user flexibility.
As Lorenzo expands its token suite, it aims to form an on-chain investment bank. This infrastructure would cater to institutional-grade users. Plans include building a professional environment for on-chain wealth management. The goal is to enable broader participation in decentralized financial services.
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Risk Disclosure and User Advisory
USD1+ OTF offers passive yield but includes financial risks. Yield performance may vary with market trends. Strategy outcomes are subject to volatility and external factors. Before subscribers can start participating in the investment, there are chances of fluctuations in value that the investors should consider.
Liquidity might not be achieved as redemption periods are stable. When operating in the test net, users are expected to make plans accordingly. Lorenzo’s target is to provide residential stability, but every investment carries risks.
The USD1+ OTF is most appropriate for users with stablecoin professions. It is directed at people interested in structured passive income within DeFi. Lorenzo facilitates the transparency of on-chain yield products by conforming to the core standards of institutions.
