Recently, I've been focused on something - the OTF (On-Chain Traded Fund) created by Lorenzo Protocol.

In simple terms, it means to completely move the traditional fund model onto the blockchain. When you buy a token, it is equivalent to holding a whole set of asset portfolios. It sounds simple, but this thing is actually quite interesting.

How do traditional funds operate? Asset management companies mix stocks, bonds, and commodities together, packaging them into a product, and you just need to buy a share. The advantage is convenience; you don’t have to monitor and allocate yourself, and the risks are also diversified. OTF does the same thing, but the scenario has changed to blockchain—multi-strategy combinations, unified token shares, and on-chain transparent settlement.

I think this direction should have appeared long ago. Looking back, the crypto industry has been doing one thing for years: reinventing the mature models of traditional finance. When lending protocols came out, people said, isn't this just an on-chain bank? When AMMs emerged, some said this is a decentralized market maker; stablecoins, options, RWA... every new thing that appears is accompanied by a round of debate about "this thing has existed in traditional markets for a long time."

But arguments aside, users still buy in. Why? Because the on-chain version does solve some pain points.

Take OTF, for example, the biggest change is the "access threshold". Traditional multi-strategy funds are mostly aimed at institutions or high-net-worth clients. What if ordinary people want to participate? They have to go through account opening, compliance, and fund review first. But now? As long as you have a wallet, just exchange a token and you’re done; the entire structured product instantly becomes something accessible to everyone.

This "simplification" is actually not