Lorenzo unveils real asset-based on-chain fund 'USD1+ OTF'…BNB Chain testnet operation underway
Summary
- Lorenzo announced the unveiling of its real asset-based on-chain fund USD1+ OTF.
- The product is collateralized by the USD1 stablecoin, and users can receive the yield-bearing token sUSD1+ upon deposit.
- Lorenzo emphasized that this product is currently being pilot-tested on the BNB Chain testnet, offering institutional-grade yields and DeFi interoperability.
On-chain asset management protocol Lorenzo has introduced a new 'On-chain Traded Fund (OTF)' product that combines real world assets (RWA), quantitative trading, and decentralized finance (DeFi) yield strategies.
On the 4th, Lorenzo announced on its official X (formerly Twitter), "USD1+ OTF is the first on-chain yield product fully collateralized with the World Liberty Financial stablecoin USD1, and is currently being pilot-operated on the BNB Chain testnet."
USD1+ is a yield-bearing token issued upon deposit of the USD1 stablecoin and functions similarly to a deposit certificate. Users deposit USD1 and receive a corresponding reward token, sUSD1+, which is structured to increase in value over time as actual yield rates are reflected.
Lorenzo explained, "USD1+ OTF delivers institutional-grade yields on-chain, while maximizing DeFi interoperability," adding, "By settling yields in USD1, we can provide a unified user experience (UX) and accumulate returns going forward."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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