When people hear "tokenization," they often think of a straightforward swap: taking an asset from the real world and putting it into a blockchain format. While useful, this view doesn't capture the more significant change Lorenzo is aiming for.
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Lorenzo's OTF model sees the token less as a label for an asset and more as a piece of a fund—a transferable claim on a strategy. In traditional finance, most investors don't manage a strategy by building positions daily. Instead, they own a share of a fund, and the fund's setup handles allocation, rebalancing, and execution behind the scenes. The "share" is what you interact with. The portfolio's logic is what powers it.
OTFs bring this concept onto the blockchain. Rather than requiring users to manually move capital between different basic components, Lorenzo bundles strategy exposure into tokenized products built on vault structures. A basic vault can represent one objective. A combined vault can merge several objectives into a single portfolio action. The OTF becomes the part you hold, while the vault system determines what that part actually does over time.
This is important because it changes how people get involved on-chain, moving from constant fine-tuning to deliberate investment choices. You're not just deciding what to own; you're deciding how your money acts—whether it follows trends, adjusts for market swings, follows a set yield plan, or operates with other designed patterns.
And because the system is on-chain, the product is more than just a promise—its structure can be examined. In a field where trust is often based on stories, Lorenzo's OTF model aims to build trust through its design: standard product logic, clear execution paths, and a system for managing which strategies get support.
To sum up: when fund shares become tokens, the token stands for more than just an asset; it represents a method.
