What is Strata?

Strata is a perpetual risk-tranching protocol that designs structured DeFi products atop USDe, Ethena’s synthetic dollar backed by delta-neutral positions on top-tier crypto assets. It allows investors to customize their risk exposure and return potential through two liquid, composable tokens:

• stUSDe (Senior Yield Tranche): A yield-bearing, over-collateralized synthetic USD for conservative investors. It ensures principal protection and offers a guaranteed minimum yield (benchmarking the Sky Savings Rate), with upside linked to sUSDe’s APY.

• stJLP (Junior Yield Tranche): A higher-risk, higher-return token that absorbs volatility and supports the senior tranche like a liquidity buffer. It gains leveraged exposure to sUSDe yields and earns a risk premium—making it ideal for risk-tolerant users.

Strata’s innovative Dynamic Yield Split (DYS) mechanism smartly allocates protocol-generated yield between these tranches based on real-time market conditions and liquidity—ensuring efficient yield distribution and balanced risk-return dynamics.