Dynamic Yield Split

Overview

Strata introduces a Dynamic Yield Split (DYS) mechanism to optimize yields across its risk tranches. This system dynamically allocates the protocol’s generated yield between senior and junior tranches based on real-time market conditions, ensuring efficient capital utilization while maintaining stability and optmizing risk–reward.

Structured Products

Strata tranches staked Ethena USDe (sUSDe) into two liquid and composable tokens:

• stUSDe: A yield-bearing synthetic dollar fully backed by USDe, representing the Senior Yield Tranche. It offers superior risk-adjusted returns by providing uncapped upside exposure to Ethena's sUSDe APY, while ensuring a guaranteed minimum yield and principal protection for investors seeking low-risk and predictable yields in DeFi.

• stJLP: A yield-bearing asset and liquid investment product representing the Junior Yield Tranche, offering leveraged exposure to Ethena’s sUSDe APY while also serving as a liquid insurance pool for stUSDe. It absorbs excess risk and volatility associated with sUSDe, earning a risk premium from the Senior Tranche—offering higher APY for risk-tolerant investors.

Strata’s dual-token design introduces a meaningful shift in risk management by splitting yield and risk exposure into distinct senior and junior tranches.

More details on the Dynamic Yield Split mechanism and yield distribution will be shared soon.