Traditional closed-end funds are like permanently locking up your assets - it's easy to get in, but you have to wait for the so-called open period to take them out. No matter how the market changes during this time, you can only watch helplessly. When you really need money or want to seize new opportunities, you can only sell at a significant discount in the Secondary Market. This model is clearly outdated in the DeFi era.

The current BTCFi ecosystem is changing rapidly. Bitcoin yield strategies are gradually becoming popular, but previous options were indeed very limited—participation often meant locking up assets for a period of time, with basically zero flexibility. The open treasury mechanism recently launched by the Lorenzo protocol seems to be trying to break this deadlock.

The differences mainly manifest in two aspects. From the perspective of liquidity, a closed model physically or legally locks the assets, leaving investors with only a certificate. On the other hand, an open treasury allows assets to remain liquid, enabling you to make decisions based on market conditions at any time—this flexibility is completely on a different level for those involved in complex Decentralized Finance strategies.

Transparency is also a key distinction. Traditional funds often operate within complex legal structures, leaving investors partly unaware of the actual movements of their assets. Open treasury, on the other hand, publicly discloses all data on the chain, with every transaction traceable. This not only provides psychological reassurance but, more importantly, allows for independent verification of returns and risks.

In the current market environment, this difference is becoming increasingly important. Investors who need to frequently adjust their positions and quickly respond to the market will naturally tend to choose solutions with stronger liquidity and higher transparency.