Lorenzo Launches Product BNB+ OTF
- Core Viewpoint: The BNB+ OTF launched by Lorenzo is an on-chain exchange-traded fund designed to provide BNB ecosystem users with a structured real-yield product benchmarked against NAV (Net Asset Value) through compliant custody and professional execution.
- Key Elements:
- Product Mechanism: Users subscribe with BNB to receive tokens representing fund shares. The fund executes diversified strategies under a custody framework, with all returns credited to the NAV and reflected in the share price, while the number of shares remains unchanged.
- Core Logic: BNB was chosen due to its sufficient asset depth and market liquidity, which supports large-scale operations. The low cost and high efficiency of BNB Chain facilitate strategy execution, and its ecosystem's staking and incentive activities provide concentrated sources of yield.
- Yield Structure: Returns come from four complementary dimensions: the base yield from BNB staking, event-driven yields from participating in ecosystem incentives, execution enhancement through centralized scheduling to improve capital efficiency, and long-term price appreciation driven by the BNB buyback and burn mechanism.
- User Journey: Users deposit BNB to mint BNB+ tokens. The funds enter compliant custody for strategy execution. Returns are periodically credited to the NAV, driving up the token price, and users can redeem their holdings accordingly.
- Company Vision: Lorenzo aims to become an on-chain investment bank, specializing in providing standardized issuance, tokenization, and fundraising services for various yield-generating assets.
BNB+ OTF is an on-chain trading fund launched by Lorenzo targeting the BNB ecosystem: users subscribe with BNB and receive corresponding tokenized certificates representing fund shares and profit rights; under the Hash Global compliant custody + professional execution framework, diversified strategies are uniformly deployed, with all profits credited to the NAV, and share prices reflecting performance, avoiding the complexity brought by inflationary token issuance or frequent restaking. This OTF model has been pre-validated and market-educated through Lorenzo's sUSD1+ OTF product.
From a timing perspective, after experiencing several cycles dominated by leverage and inflationary distribution, especially the market flash crash on October 11th, a large amount of capital has returned to the main theme of "auditable, redeemable, and composable" real yield. BNB+ OTF uses NAV as the profit benchmark, channeling all profits generated by strategies into the price, while the number of shares remains constant. This not only reduces the complexity of restaking and compounding paths but also facilitates smoother information disclosure, risk transparency, and compliance audits.
Lorenzo's core logic for choosing BNB lies in a comprehensive balance of asset scale and market depth, native opportunities, and settlement efficiency. On one hand, BNB is a top-tier asset with sufficient spot and derivatives depth, capable of handling large-scale subscriptions/redemptions and frequent rebalancing, thereby reducing price impact and slippage costs. On the other hand, the transaction fees and confirmation speed on BNB Chain lower the operational costs of portfolio management and enable smoother settlement, facilitating agile switching and dynamic hedging between multiple strategies. More importantly, the native "redeemable yield" within the BNB ecosystem is more concentrated, including validator node staking and various Launchpool ecosystem incentive events, making it easier to achieve stable yield stacking. Considering BNB's user base and application coverage, participation levels and education costs are also clearer, making it easier to form a positive capital feedback loop within compliance boundaries.
From a yield perspective, BNB+ OTF's profits are benchmarked to NAV. When profits are distributed, they are reflected in the price, meaning the number of shares a user holds remains unchanged while the value per share increases with the NAV. Its profits primarily come from four complementary dimensions:
The first layer is "Base Yield," consisting of stable income generated from BNB PoSA staking, providing sustainable cash flow;
The second layer is "Event Yield," where the fund participates in phased opportunities like Launchpool, Megadrop, and ecosystem incentives within strict quota and risk control frameworks, capturing excess returns through event timing on Binance;
The third layer is "Execution Enhancement," leveraging Lorenzo's centralized scheduling and execution pipeline to implement quota pre-allocation, parallel participation, and idle capital management, compressing BNB's capital idle periods while improving capital utilization and risk-adjusted returns;
The fourth layer is "Buyback Spillover," benefiting from the long-term Beta provided by Binance's BNB buyback and burn supply contraction mechanisms. This grants structural upward elasticity to the price dimension for the same net cash flow, thereby providing long-term upward momentum to the BNB+ OTF NAV curve.
From a capital flow perspective, the user participation path is: Deposit BNB → Mint BNB+ → Compliant Custody → Staking / Launchpool / Ecosystem Incentives → Profits credited to NAV → BNB+ price rises with NAV → Bi-weekly disclosures, scheduled redemptions.
In addition, users can participate in Lorenzo's sUSD1+ product by staking USDT, USDC, or USD1 to obtain sUSD1+ tokens representing profit rights and experience a stable, diversified, real-yield structure.
Lorenzo's future vision is to build an on-chain investment bank, focusing on providing standardized issuance, tokenized management, and fundraising services for yield-generating assets such as CeFi, RWA, and DeFi, bridging the gap between large-scale on-chain capital and institutional-grade wealth management products.
