Lorenzo Launches USD1+OTF On-Chain Real Yield Fund

Lorenzo, a prominent player in the cryptocurrency space, has made a significant move by launching the testnet product USD1+OTF. This innovative offering is pioneering the concept of an on-chain real yield fund based on USD1. The launch of USD1+OTF marks a notable advancement in the financial technology sector, as it introduces a new mechanism for generating real yields on the blockchain.

The USD1+OTF product is designed to provide users with a stable and reliable source of income through on-chain transactions. By leveraging the stability of USD1, the fund aims to offer a secure investment option that can withstand market volatility. This initiative is particularly significant as it addresses one of the longstanding challenges in the cryptocurrency market: the lack of stable and predictable yield-generating instruments.

The introduction of USD1+OTF is expected to attract a wide range of investors, from individual traders to institutional players, who are seeking stable returns in the volatile cryptocurrency market. The on-chain nature of the fund ensures transparency and security, as all transactions are recorded on the blockchain, providing an additional layer of trust for investors.

Lorenzo's move to launch USD1+OTF is a strategic step towards expanding its product offerings and solidifying its position in the competitive cryptocurrency landscape. By pioneering an on-chain real yield fund, Lorenzo is not only meeting the growing demand for stable investment options but also setting a new standard for innovation in the financial technology sector. This development is likely to influence other players in the industry to explore similar on-chain yield-generating products, further driving the evolution of the cryptocurrency market.

This product is supported by Lorenzo's developed Financial Abstraction Layer, which will integrate income from RWA, quantitative strategies, and DeFi income, with all income settled in USD1. Lorenzo has thus become one of the earliest projects to build a real income product around USD1, promoting the practical use of USD1 in the on-chain financial ecosystem.

Users can participate in the product test by staking USDT, USDC, or USD1, receiving sUSD1+ tokens representing income rights, and experiencing a stable, diversified, and real income structure. Lorenzo's future vision is to build an on-chain investment bank, focusing on providing standardized issuance, tokenized management, and fundraising services for income-generating assets such as CeFi, RWA, DeFi, thereby bridging the gap between on-chain large-scale funds and institutional-level financial products.