Lorenzo Protocol takes a different approach — it’s not relying on hype about high APY to attract attention like traditional yield farms. What it truly aims to do is bring institutional-grade asset management onto the blockchain: strategies are transparent and visible, accounts are open for inspection, and tokens can be traded at any time.

The core logic is actually not that complicated but very powerful: packaging complex investment strategies into on-chain tokens, allowing ordinary people to hold a part of professional-grade strategies, eliminating the cumbersome entry barriers and paperwork of traditional finance.

**What is an on-chain trading fund OTF?**

The main feature of the project is On‑Chain Traded Funds (OTF). Unlike traditional single vaults, OTF is essentially an investment fund operating on the blockchain — flexible structure, transparent mechanism, and ample liquidity. Investors don’t need to understand how complex the underlying strategy is; they just need to choose the fund tokens that suit them and buy, just like buying coins on an exchange.

This design has a huge advantage: breaking down the information barrier to investment. You can see what assets are in the fund, how the strategy operates, and how the returns are distributed — everything is on-chain, with no black box operations.