Highlights • A gene-encoded TfR-LYTAC is developed for lysosomal degradation of extracellular proteins • TfR-LYTAC is efficiently targeted to the tumor by the bacterial OMVs platform • OMV-LYTAC combines cancer immunotherapy of PD-1/PD-L1 inhibition and immune activation Summary The lysosome-targeting chimera (LYTAC) approach has shown promise for the targeted degradation of secreted and membrane proteins via lysosomes. However, there have been challenges in design, development, and targeting.