Junior USDe

Strata Junior USDe (jrUSDe)

Junior USDe (jrUSDe) is a yield-bearing investment product that represents the junior risk tranche in Strata’s structure. It provides leveraged upside to sUSDe APY while simultaneously functioning as a liquid insurance pool for srUSDe. By absorbing excess risk and volatility associated with sUSDe APY, jrUSDe earns a risk premium from the senior tranche, delivering potentially higher yields for risk-tolerant investors.

jrUSDe receives the residual yield after the senior tranche is paid and absorbs any shortfall when sUSDe APY falls below the guaranteed minimum yield for srUSDe tied to the benchmark rate. As a result, jrUSDe outperforms sUSDe APY in high-yield environments but may underperform when sUSDe APY drops below the benchmark rate. jrUSDe may generate a negative yield when the sUSDe APY falls below the benchmark rate, resulting in a portion of the jrUSDe reserves being allocated to srUSDe to guarantee the srUSDe floor APY. jrUSDe/USDe exchange rate (NAV) continuously rises or falls as the positive/negative yield accrues, and it can fall below 1 as well during extended periods of negative performance.

jrUSDe yield can be further traded on Pendle's yield trading platform to hedge or speculate through its Principal Token (PT) and Yield Token (YT).

jrUSDe is well-suited for users with a more aggressive risk profile, including DeFi-native power users, hedge funds, and yield farmers who seek higher yields and have a slightly higher risk tolerance.

Key features of jrUSDe

• Instant minting and redemption: Users can mint jrUSDe directly using USDe or sUSDe and redeem without any lockup currently by paying a withdrawal fee. Users can also trade it on secondary markets using any asset on DEXs.

• Leveraged yield exposure: jrUSDe allows risk-tolerant investors to capture enhanced returns from sUSDe’s variable APY while assuming increased exposure to yield volatility.

• Liquid insurance layer: jrUSDe absorbs the volatility and underlying risks of sUSDe and earns a risk premium from the senior tranche, resulting in higher yields for investors who are comfortable taking on more risk.

• Composable and efficient: Built on the ERC-4626 tokenized vault standard, jrUSDe is a fully permissionless and transferable token designed for seamless integration across DeFi and CeFi, delivering capital efficiency, flexibility, and broad accessibility.

• Omni-chain liquidity: jrUSDe is built on LayerZero’s OFT standard, enabling assets to be minted/redeemed across multiple chains and allows seamless cross-chain transfers, ensuring unified and efficient liquidity.

---