Sierra Protocol has announced the launch of SIERRA, a new first of its kind Liquid Yield Token (LYT), on the Avalanche network. Users can now get completely permissionless access to SIERRA tokens by swapping USDC directly with any wallet of their choice in the Sierra web app or on LFJ (formerly Trader Joe), the largest decentralized exchange on Avalanche. Once a user buys SIERRA yield begins accruing immediately, and unlike many other LYTs, there are no hidden fees, lockups, minimums or staking requirements to earn yield.

Unlike yield-bearing stablecoins, LYTs are not directly pegged to USD or another fiat currency. Instead, LYTs are backed by stablecoin reserves which generate yield that accrues to LYT holders. SIERRA innovates on existing LYTs by being the first to have a diversified portfolio of yield generating reserves consisting of both investment-grade RWAs and blue-chip DeFi protocols. Additionally, the portfolio of reserves backing SIERRA is dynamically rebalanced, according to Sierra’s Risk Framework, in response to changing market conditions. SIERRA’s Transparency Dashboard provides real-time insights into key metrics, giving users free access to detailed data via the website, CSV download, or API to help them make informed decisions. All together, SIERRA delivers DeFi users a novel way to passively earn risk-adjusted returns through a token that is self-custodial and universally accessible.

Sierra achieves its flexible reserves management strategy using investment-grade RWAs and blue-chip DeFi protocols through its partnership with OpenTrade. OpenTrade’s institutional-grade stablecoin ‘yield-as-a-service’ infrastructure enables Sierra to seamlessly allocate reserves between RWA yield sources like U.S. Treasury money market funds and investment-grade commercial paper, as well as DeFi protocols like AAVE, Morpho, Euler, Wildcat and Pendle. 

The OpenTrade platform abstracts operational complexity by managing workflows for each of Sierra’s yield sources through a single protocol. Moreover, through its institutional-grade processes it strengthens  Sierra’s platform security as all RWA collateral is held in secured accounts with Tier 1 financial institutions and managed by an FCA-regulated asset manager, while all DeFi vaults utilize Fireblocks’ whitelisting and policy-enforcing features for cryptoasset custody.

Mitchell Nicholson, Core Contributor of the Sierra Protocol said: “We’re very excited about the launch of SIERRA after many months of planning and building. We believe Sierra’s flexible reserve management strategy, combined with dynamic rebalancing capabilities, make SIERRA a unique offering that many DeFi users will prefer holding. We look forward to announcing many partnerships over the coming weeks that provide SIERRA with enhanced utility across both DeFi and CeFi.”

Dave Sutter, CEO of OpenTrade added: “We’re proud that Sierra has chosen OpenTrade as the technical foundation to build such an innovative protocol as part of the fast-growing DeFi ecosystem. The simplicity, transparency and composability of Sierra represents a fresh approach to liquid yield tokens. Seeing the unique way Sierra utilizes OpenTrade’s institutional-grade infrastructure makes supporting its future growth so exciting. We look forward to continuing to support Sierra and its ecosystem for a long time to come.”

“Sierra’s launch on Avalanche shows how DeFi and real-world assets can work together," said Eric Kang, Head of DeFi at Ava Labs. "By building on OpenTrade’s infrastructure, Sierra makes earning on-chain yield simple, transparent, and accessible to anyone.”

About Sierra

Sierra reimagines money by issuing SIERRA as a Liquid Yield Token (LYT) built to deliver the best user experience across DeFi, CeFi and TradFi. Instead of dealing with hidden fees, banking delays and price inflation, SIERRA holders experience a new form of money that is universally accessible, self-custodial, transparent and growing in value through intrinsic yield. By holding SIERRA, users passively earn industry-leading yield, compounded daily without any lock-ups, hidden fees, or requirements to stake or claim rewards.

Learn more: https://sierra.money/

About OpenTrade

OpenTrade is an institutional grade platform for real world asset backed lending and stablecoin yield products backed by a suite of high-quality on-chain and real world financial assets that generate predictable risk-adjusted returns. Backed by investors including a16z Crypto and Circle, the OpenTrade platform has been built to allow any company to power their own stablecoin yield products for their users, who can trust in OpenTrade’s enterprise-grade technology systems, and the security guarantees of our time-tested legal protections and bank-grade asset management operations.

Learn more: https://www.opentrade.io

About Avalanche

Avalanche is an ultra-fast, low-latency blockchain platform designed for builders who need high performance at scale. The network’s architecture allows for the creation of sovereign, efficient and fully interoperable public and private layer 1 (L1) blockchains which leverage the Avalanche Consensus Mechanism to achieve high throughput and near-instant transaction finality. The ease and speed of launching an L1, and the breadth of architectural customization choices, make Avalanche the perfect environment for a composable multi-chain future.  Supported by a global community of developers and validators, Avalanche offers a fast, low-cost environment for building decentralized applications (dApps). With its combination of speed, flexibility, and scalability, Avalanche is the platform of choice for innovators pushing the boundaries of blockchain technology.

Learn more: https://www.avax.network/