stJLP

stJLP represents the moderate-risk, higher-reward Junior Yield Tranche in Strata’s structure. It provides leveraged exposure to sUSDe APY while simultaneously functioning as a liquid insurance pool for stUSDe. By absorbing excess risk and volatility associated with sUSDe, stJLP earns a risk premium from the senior tranche, delivering potentially higher yields for risk-tolerant investors.

stJLP receives the residual yield after the Senior Tranche is paid and absorbs any shortfall when sUSDe APY falls below the minimum guaranteed APY. As a result, stJLP outperforms sUSDe APY in high-yield environments but may underperform when sUSDe APY drops below the benchmark rate. stJLP is well-suited for DeFi-native power users, funds, and yield farmers who seek higher yields and have a slightly higher risk tolerance.

Key features of stJLP

  • Instant minting and redemption: Users can seamlessly mint or redeem stJLPe for USDe or sUSDe without any lockup, or buy it on secondary markets using any asset on DEXs. Strata will also introduce an optional locking feature that offers enhanced yields.

  • Leveraged yield exposure: allowing risk-tolerant investors to capture enhanced returns from sUSDe’s variable APY while assuming increased exposure to yield fluctuations;

  • Liquid insurance layer: absorbs volatility and associated risks of sUSDe, earning a risk premium from the Senior tranche—offering higher yields for risk-tolerant investors.

  • Composable and efficient: Built on the ERC-4626 tokenized vault standard, stJLP is a fully permissionless and transferable token designed for seamless integration across DeFi and CeFi, delivering capital efficiency, flexibility, and broad accessibility.

  • Omni-chain liquidity powered by LayerZero’s OFT standard enables assets to be minted across multiple chains and allows seamless cross-chain transfers, ensuring unified and efficient liquidity.

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