🌐 How Could OTFs Become the Settlement Layer for Multichain Yield? 🛠️💧 Liquidity today moves like travelers ✈️: slow 🐢, fragmented 🧩, and with constant checkpoints. Routing capital is inefficient. 😵💫
The Cohesion Solution: OTFs 🤝
OTFs (Optimized Trading Funds) create a pathway to that cohesion by acting as settlement units indifferent to the chain. 🔗
✅The Change: Instead of moving positions ➡️ across chains, you move OTF tokens 📦 that carry exposure to the strategy. 🎯
✅Outcome: Liquidity stops traveling as raw capital 💸 and begins to travel as packaged yield. 🎁
Elegant Architecture and Routing 🧭
As the abstractions between chains mature, OTFs could become the preferred building blocks for yield routers. 🏗️
🔸Efficiency: A router only needs to choose which OTF a treasury should hold. Reorganization becomes an instant swap ⚡ (changing one OTF for another), without touching underlying positions 🪄.
🔹Specialization: Yield strategies specialize (in $ETH 🛡️, L2s 🏎️, RWAs 🏠, etc.). A routing layer simply orchestrates the allocation between them. 🎻
🔸My Perspective: This architecture is elegant because it shifts the bottleneck. Instead of bridging capital, we connect exposure to the strategy. 🔗 Multichain yield becomes less about jumping and more about composing. 🎵
If this takes hold, OTFs could become the universal settlement layer for yield. 👑
