FAQs
Everything you need to know.
General
What is Strata?
Strata is a perpetual risk-tranching protocol offering structured yield products on USDe, Ethena’s synthetic dollar backed by delta-neutral positions on blue-chip crypto assets. It allows investors to customize their risk and return exposure through two tranches, Senior and Junior, while earning crypto-native yields sourced from carry and basis trades.
The protocol introduces two liquid and composable tokens built on Ethena’s reward-bearing synthetic dollar, sUSDe: Strata Senior USDe (srUSDe) and Strata Junior USDe (jrUSDe).
What problem does Strata solve?
Know more about Strata’s value proposition here: Why Strata
I have a partnership request. How can I proceed?
Partnership requests can be directed to the Strata team via Discord, or email ([email protected]).
I’m interested in career opportunities at Strata. Where can I apply?
Send your resume and details about your skillset to: [email protected].
Strata Basics
What are srUSDe and jrUSDe?
Strata Senior USDe (srUSDe) An over-collateralized, yield-bearing synthetic dollar backed by USDe, representing the senior risk tranche in Strata’s structure. It offers superior risk-adjusted yield by providing principal-protection and guaranteed minimum yield tied to the benchmark rate and uncapped upside exposure to sUSDe APY.
Strata Junior USDe (jrUSDe) A yield-bearing investment product, representing 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.
What backs srUSDe and jrUSDe?
Strata tranches are backed solely by USDe and sUSDe, which themselves are backed by Ethena’s delta-neutral strategy, meaning Strata does not modify or add risk to USDe’s collateral and solely redistributes sUSDe yield between Senior and Junior holders.
Will Strata launch senior and junior tranches on more yield sources?
Yes, Strata will expand to offer a wider range of structured yield products built on diverse crypto-native yield products, transforming them into over-collateralized, yield-bearing synthetic dollars (senior tranche) and liquid, high-yield investment products (junior tranche) through its generalized risk-tranching mechanism.
Does Strata custody my assets?
No, Strata is fully non-custodial and uses audited smart contracts to manage deposits and redemptions, ensuring that users maintain control of their assets at all times subject to protocol rules.
Minting & Redemption
Can anyone mint or redeem srUSDe and jrUSDe through Strata?
Yes, anyone can mint or redeem srUSDe/jrUSDe tokens through Strata using USDe or sUSDe they already hold, as Strata is a fully permissionless protocol, though users must comply with any restrictions associated with their jurisdiction.
How does srUSDe and jrUSDe redemptions work?
When srUSDe is redeemed, the user receives USDe based on the srUSDe/USDe exchange rate, minus any applicable redemption fees.
At the current stage of protocol implementation:
srUSDe can be redeemed for USDe and sUSDe through the Strata UI.
2.5 bps redemption fee, but it is currently waived.
sUSDe redemptions are processed instantly, while USDe redemptions follow a 7 day cooldown period, consistent with Ethena’s sUSDe unbonding period. USDe can be claimed after 7 days in "View History" under Portfolio section.
srUSDe can also be traded for other assets on DEXs.
When jrUSDe is redeemed, the user receives USDe based on the jrUSDe/USDe exchange rate, minus any applicable redemption fees.
At the current stage of protocol implementation:
jrUSDe can be redeemed for USDe and sUSDe through the Strata UI.
Redemption fee is 10 bps, but it is currently waived.
Both sUSDe and USDe redemptions follow a 7 day cooldown period, consistent with Ethena’s sUSDe unbonding period. USDe/sUSDe can be claimed after 7 days in "View History" under Portfolio section. This cooldown on jrUSDe redemption will be removed soon and users will be able to instantly redeem for sUSDe by paying the redemption fee.
jrUSDe can also be traded for other assets on DEXs.
Is there any cooldown period on srUSDe and jrUSDe redemptions?
srUSDe and jrUSDe can be minted instantly using USDe or sUSDe. srUSDe can be redeemed instantly for sUSDe, and redemptions to USDe follow Ethena’s standard seven-day cooldown period. jrUSDe can currently be redeemed for sUSDe or USDe with a seven-day cooldown period. This cooldown will be removed soon, after which users will be able to redeem instantly for sUSDe by paying a withdrawal fee.
Where can I claim my assets after cooldown?
You must manually claim USDe/sUSDe after redeeming srUSDe or jrUSDe. Go to the "Overview" page on the Strata dApp and click the "View History" tab. You can view the assets that are currently in cooldown or ready to be claimed.
Yield Calculation & Distribution
How is yield generated?
Yield comes entirely from pooled USDe collateral which is staked for sUSDe via Ethena’s staking contracts. Strata’s Dynamic Yield Split is the core mechanism that allocates yield generated from the pooled collateral between Senior USDe (srUSDe) and Junior USDe (jrUSDe), based on sUSDe APY, benchmark rate and the liquidity distribution between the two tranches. Know more about sUSDe yield here: Ethena Docs.
How do I earn yield?
Both srUSDe and jrUSDe are yield-bearing assets and built on ERC-4626 contracts with USDe as the base asset.
srUSDe/USDe exchange rate (NAV) always remains above 1 and continues to risk over time as yield accrues. It always earns a share of the yield generated by the protocol on the pooled USDe collateral by staking USDe. Its yield has a floor equivalent to the benchmark rate and uncapped upside exposure to sUSDe APY. In extreme scenarios (jrUSDe TVL ~ 0, sUSDe APY < benchmark rate), srUSDe will simply earn the same APY as sUSDe.
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.
How are srUSDe and jrUSDe APYs calculated?
Strata’s Dynamic Yield Split (DYS) mechanism dynamically distributes sUSDe APY between the senior and junior tranches based on sUSDe APY, benchmark rate and the liquidity distribution between the two tranches. The yield calculation methodology is explained here: Dynamic Yield Split.
How often are srUSDe and jrUSDe APYs calculated?
srUSDe and jrUSDe yield split is calculated dynamically based on the USDe balance held in the Ethena StakingRewardsDistributor contract and is distributed linearly over each 8-hour reward epoch, following the same mechanism used by Ethena. The yield allocation dynamically adjusts on every protocol event based on the sUSDe performance, benchmark rate and liquidity in both pools. A detailed technical overview of the protocol and yield distribution mechanism can be found in the Protocol Overview.
How is the benchmark rate calculated?
The current benchmark rate is supply-weighted average of USDC and USDT lending rates on Aave v3 Core market. Real-time benchmark rate is used to calculate srUSDe and jrUSDe APY at the time of any protocol event (minting, redemption). The benchmark rate calculation methodology can be found here: Dynamic Yield Split.
Strata Points & Rewards
What is the Strata Points Program?
Strata Points Program is an incentive mechanism designed to reward early users and liquidity providers with Strata Points for helping bootstrap the Strata ecosystem. As a decentralized protocol, Strata’s strength lies in its community, and Strata Points are how we measure and showcase these contributions onchain.
Strata Points can be earned by using Strata, engaging with ecosystem partners, and inviting new users. The program recognizes and tracks contributions across multiple seasons, rewarding those who actively support the protocol’s growth.
What is Strata Season 1?
Strata Public Mainnet and Season 1 officially launch on Monday, October 13th at 12:00 UTC. This milestone marks a major step forward, marking the transition from the pre-deposit phase to full protocol launch. To support the debut of our first structured yield products built on Ethena USDe, Strata is introducing a new season in its Points Program: Season 1. Users who participate in Season 1 receive Strata and Ethena Points apart from the underlying yield of srUSDe and jrUSDe. Season 0 participants receive an additional 15% boost in Season 1 Points.
What is Strata Season 0?
Season 0 is the first step in our journey toward the mainnet deployment. This pre-launch, pre-deposit phase is designed to kickstart our platform, onboard USDe collateral, and introduce the Strata Points Program. Users who participate in Season 0 receive boosted Strata Points, along with Ethena and Ethereal points, plus additional rewards.
How do I earn Strata Points and other rewards?
Strata and Ethena Points can be earned by holding srUSDe & jrUSDe, engaging with ecosystem partners, and inviting new users. The program recognizes and tracks contributions across multiple seasons, rewarding those who actively support the protocol’s growth. Latest partners integrations and rewards can be found here on the Strata UI.
Is there any referral program?
Yes! You receive 10% of the Strata Points earned by anyone who signs up using your unique referral link. Referees get a 10% Strata Points boost when joining through a referral link.
Risks & Mitigations
What are the risks associated with srUSDe and jrUSDe?
Potential risks of using the Strata Protocol and the mechanisms in place to mitigate them can be found here: Risks & Mitigations
What happens if the junior tranche is too small?
It indicates that senior tranche coverage is low, which is why the protocol has protective safeguards in place.
Junior tranche (jrUSDe) redemptions and senior tranche (srUSDe) minting are temporarily suspended when the senior coverage ratio is below 105%.
Coverage is a self-balancing mechanism - the thinner it is, the higher the yield for junior tranche, attracting more liquidity.
Is Strata audited?
Strata Protocol has completed multiple audits by leading security firms to ensure the highest level of security. The audit reports can be found here: Audits.
Disclaimer Strata Points do not represent equity, fees, or a claim on Strata’s treasury. They have no secondary‑market value and are subject to change as the program evolves. Always consult the Strata app and official announcements for the latest rules and timelines.
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