Dec 16, 2025
Following the expansion of SIERRA to Ethereum through our partnership with LayerZero, the Sierra Protocol is launching SIERRA incentives that can be earned by liquidity providers on Uniswap. Secondary market liquidity on decentralized exchanges like LFJ and Uniswap is essential to enable access for SIERRA, as well as unlock further token utility such as speculating on SIERRA’s yield via Pendle or borrowing against SIERRA on lending markets like Morpho. Offering incentives to users who provide liquidity for SIERRA on decentralized exchanges demonstrates our commitment to building up deep secondary market liquidity.
Unlocking Ethereum DeFi with Uniswap
Uniswap is the clear market leader for decentralized exchanges on Ethereum and EVM-based blockchain networks, facilitating over $3.5 trillion in swap volume since first going live in 2019. Presently, Uniswap enables over $70 billion in monthly swaps as one of the most trusted brands in DeFi.
Similar to SIERRA’s deployment on LFJ on Avalanche, Uniswap allows for concentrated liquidity, which is ideal for non-volatile pairs such as SIERRA/USDC. Concentrated liquidity pools, like the SIERRA/USDC pool recently deployed, maximizes capital efficiency for liquidity providers (LPs) by aggregating maximum depth around the current price. This enables users seeking to buy or sell SIERRA to have the lowest possible transaction costs.
How to Participate and Earn SIERRA Incentives
To start earning LP incentives on Uniswap, here are the required steps:
Acquire SIERRA directly on Uniswap on Ethereum by swapping any asset into SIERRA. You can also acquire SIERRA on Avalanche using LFJ and then bridge to Ethereum using Stargate Finance
Navigate to the SIERRA/USDC v4 Pool on Ethereum and select the SIERRA and USDC pair
Ensure you have selected the correct fee tier of 0.05%
Select the upper and lower price bounds that you want to supply SIERRA/USDC liquidity. You can reference SIERRA’s current price using the RedStone fundamental oracle. Note that a tighter price range will result in more fees and incentives earned but will require more active management as an LP
Deposit SIERRA and USDC into the pool based on the ratio set by your specified price range by signing the transaction in your wallet
After Step 5 is complete, you will begin earning incentives immediately. The SIERRA incentives are being distributed in partnership with Merkl. You must navigate to SIERRA’s campaign page on Merkl’s app to claim your accrued SIERRA incentives.
Compounding Yield While Using SIERRA
As a user of SIERRA, you passively earn several different streams of yield simultaneously, including:
The intrinsic yield of SIERRA, which is around 5.8% APR
Through the Summit Program, you earn Peaks by holding SIERRA and LPing SIERRA on LFJ and Uniswap
By LPing SIERRA on LFJ and Uniswap, you earn the additional SIERRA incentives as described above. At the time of writing, this additional yield exceeds 90% on Ethereum and 30% on Avalanche
By LPing SIERRA on LFJ and Uniswap, you also earn a portion of all swap fees paid by users buying and selling SIERRA. Swap fees on Uniswap are 5bps and 10bps on LFJ. As SIERRA gains more adoption and daily trading volumes increase, this is a sustainable yield source