In recent years, DeFi has been like a crazy innovation workshop, with new approaches emerging one after another. But to be honest, most products share a common flaw: you can never really figure out what your money is actually doing. The more complex the strategy, the deeper the black box.

I've recently been paying attention to the Lorenzo protocol. What it's doing looks quite "traditional," but it precisely hits the pain point—turning on-chain strategies into tangible, visible products. They call it OTF (On-Chain Trading Fund). You can think of it as each token representing a complete strategy.

For example, there's an OTF dedicated to profiting from market volatility, and others are designed with fixed yield curves. What you’re buying isn’t a bunch of incomprehensible contract calls, but a clearly logical financial product. How are the returns generated? Where are the risks? It’s all clear at a glance.

Technically, it uses a layered "vault architecture." Simple strategies run in a single vault, with fixed and transparent behavior. More complex ones? They combine several simple vaults together, like building blocks. The key is that the contribution of each layer is traceable and doesn’t become a mystery.

The governance design is even more interesting. Its token, BANK, deliberately limits the boundaries of power—holders can influence the direction of the protocol, but can’t control the execution of specific strategies. This design is quite restrained and avoids the kind of "governance equals manipulation" chaos seen in many projects.

Ultimately, for DeFi to truly go mainstream, flashy technology isn’t enough; people need to understand and trust it. Making complex things simple might just be the hardest kind of innovation.