From ETFs to OTFs: How Lorenzo Protocol Is Evolving Tokenized Finance
Explains how Lorenzo Protocol moves beyond asset tokenization by bringing full investment strategies on-chain through On-Chain Traded Funds (OTFs).
Tokenization is often misunderstood as simply putting assets on-chain. Lorenzo Protocol takes a different approach — it tokenizes investment strategies, not just assets.
Through On-Chain Traded Funds (OTFs), Lorenzo packages institutional-grade strategies like yield generation, quantitative logic, and risk-managed exposure into a single, composable token. Users don’t need to manage complex vaults or rebalance positions manually — the strategy execution happens transparently via smart contracts.
What makes this model notable is accessibility and verification. Traditional hedge-fund-style strategies usually require high minimums and opaque reporting. Lorenzo runs fully on-chain, allowing anyone to verify capital flows, performance, and risk parameters in real time.
A key focus is unlocking idle Bitcoin liquidity, enabling BTC holders to earn yield without sacrificing liquidity through tokenized representations.
As DeFi matures, platforms like Lorenzo highlight a shift from speculative products toward structured, programmable finance.
Closing Insight: Tokenized finance isn’t just about owning assets — it’s about owning strategy logic on-chain.
#LorenzoProtocol @Lorenzo Protocol $BANK #Write2Earn
Educational overview for crypto-curious readers
Disclaimer: Not Financial Advice
