We're excited to announce that SIERRA market is launching on Pendle on Ethereum. This integration brings fixed-yield opportunities to SIERRA holders while creating new ways to earn Peaks through Sierra's Summit Program.

Why Launch on Pendle?

Pendle has become the leading growth driver for yield-bearing tokens in DeFi, with more than 10 markets exceeding $100M TVL and Pendle’s aggregate protocol TVL exceeding $12B in 2025.

Pendle’s unique design as an interest rate trading protocol unlocks new yield opportunities that appeal to many different types of retail and institutional investors. Some prefer guaranteed returns through holding Principle Tokens (PTs) while others want leveraged yield exposure through Yield Tokens (YTs). By providing liquidity to the market, the Liquidity Provider (LP) strategy offers balanced income and risk.

For SIERRA holders, our launch on Pendle means new ways to put your assets to work while earning clearly defined rewards through the Summit Program. No vague promises, open-ended timelines, hidden conversion formulas or complex point multiples. Just transparent allocations and simple participation requirements for earning Peaks on Pendle through the Summit Program.

Timeline for SIERRA’s Markets on Pendle

We're launching three sequential Pendle markets for SIERRA in line with the conclusion of the Summit Program at the end of Q3 2026:

Market #1: March 2 - April 1, 2026 (30 Days)

Market #2: April 1 - July 2, 2026 (92 Days)

Market #3: July 1 - Oct 1 2026 (92 Days)

Sierra will launch an additional Pendle market after the conclusion of the Summit Program, coinciding with the end of Market #3. More information will be provided closer to the end of September 2026.

Pendle and the Summit Program

The Summit Program was announced in November 2025 and featured several key details for the launch of the Sierra Governance Token (SGT):

• By participating in the Summit Program, users will earn Peaks to track their participation

• The Summit Program will conclude with the Token Generation Event (TGE) for SGT

• The Summit Program will conclude by the end of September 2026 at the latest 

• At TGE, Peaks will convert to SGT based on the share of the total supply of SGT allocated to the Summit Program

• At least 30% of the total supply of SGT will be allocated to the Summit Program

• There will be at most 100,000,000 Peaks issued throughout the Summit Program

• There will be no vesting, penalties or similar mechanisms on SGT received at TGE

• Distribution of Peaks is linear, which means that the Summit Program does not provide additional incentives to participants who spread their activity across multiple addresses and sybilling behaviour that is detected will be penalized

SIERRA’s markets on Pendle will be core activities to earn Peaks throughout the remainder of the Summit Program. The primary method of earning Peaks on Pendle involves holding SIERRA YTs such as YT SIERRA 1 April 2026. Through partnering with Merkl, we take a weekly snapshot of average holdings of YTs and assign Peaks proportionally. 

For Market #1 concluding on April 1, 2026, we are committing to allocate at least 1,500,000 Peaks for holding YT SIERRA 1 April 2026. We will provide additional Peaks each week for LPing on Pendle but the majority of Peaks will be earned through holding YTs. Prior to the launch of Market #2 and Market #3, we will disclose the minimum amount of Peaks to be distributed for holding YTs throughout each market.

As with all other activities, the weekly snapshot begins at 00:00 UTC on Thursday and concludes at 23:59 UTC the following Wednesday. The weekly distribution of Peaks occurs every Friday and you can check your allocation by connecting your wallet interacting with SIERRA here: https://app.sierra.money/peaks. Since our market announcement occurred on Monday, March 2nd, the first period of tracking YT holdings will begin at the time of this announcement, conclude on Wednesday March 4th at 23:59 UTC and then follow the same cadence of all other activities going forward.

“We’re extremely excited to be launching our SIERRA market on Pendle. This collaboration marks the beginning of unlocking new yield strategies for SIERRA users and will support attracting new users. We’re confident that our unique approach to transparency of earning Peaks will improve the user experience for trading SIERRA’s yield on Pendle.” said Mitchell Nicholson, Core Contributor at Sierra.

What is Pendle?

Pendle is the leading DeFi protocol for trading yield and has been a massive driver of adoption for liquid yield tokens like SIERRA. Pendle’s protocol wraps yield-bearing assets like SIERRA into a Pendle-compatible SY token and splits the SY into two components: Principal Tokens (PT) and Yield Tokens (YT). This feature unlocks new strategies for SIERRA holders that haven't been possible before.

SIERRA’s Principal Token (PT) is called “PT SIERRA 01 Apr 2026”, which means that one PT is redeemable for one underlying SIERRA token at maturity of the market on April 1st, 2026. Prior to maturity, the PT will trade at a discount to SIERRA and the discounted price you buy the PT at represents the fixed yield you have locked in until maturity. In general, PTs on Pendle behave similarly to zero-coupon bonds.

In contrast, SIERRA’s Yield Token (YT) is called “YT SIERRA 01 Apr 2026”, which means that one YT is entitled to all yield generated by one SIERRA token until maturity. There are two main forms of yield for SIERRA, the first being the intrinsic yield generated by the reserves backing SIERRA. The second is all Peaks earned by holding YTs as part of the Summit Program. Importantly, all YTs on Pendle decay in value to zero at maturity and YT holders are entitled to claim all accrued yield. On each Friday, YT holders will see their balance of Peaks on the Peaks Dashboard increase based on their holdings of YTs in the previous snapshot period. As a result, YT buyers are speculating that the realized yield exceeds the implied yield when they purchased the YTs.

In addition to holding SIERRA PTs and SIERRA YTs, you can also become a liquidity provider (LP) on SIERRA’s Pendle market. As an LP, you hold SIERRA SY, which is a wrapped SIERRA token compatible with Pendle, and SIERRA PT in the liquidity pool. By being an LP, you are facilitating all trades as other users buy and sell SIERRA PTs and SIERRA YTs. This feature provides LPs with several sources of yield simultaneously, including:

• Swap fees paid by traders

• Intrinsic yield on SIERRA SY and fixed-rate yield on SIERRA PTs

• Additional LP incentives in PENDLE tokens

• Peaks earned by being an LP in SIERRA’s Market

Pendle has built a unique, time-aware AMM that is designed to minimize impermanent loss for LPs since the value of SIERRA PTs converge to the value of SIERRA SY at maturity. Altogether, the multiple sources of yield combined with reduced impermanent loss provide SIERRA users with another new strategy to enhance their yield.

How to Get Started

You can participate in SIERRA’s market on Pendle by buying SIERRA on Uniswap on Ethereum or LFJ on Avalanche and bridging SIERRA through Stargate. Once navigated to Pendle, you can wrap SIERRA into SY, swap into PTs and YTs, or deposit as an LP. If you have any questions, please reach out to the Sierra team on Twitter or Telegram.