stJLP
Strata Junior Liquidity Pool (stJLP) represents the Junior Yield Tranche, offering leveraged exposure to Ethena yields while also functioning as a liquid insurance pool for stUSDe. It is targeted at investors seeking higher risk-reward potential.
stJLP receives the residual yield after the Senior Tranche is paid and absorbs any shortfall when sUSDe yield falls below the minimum guaranteed APY decided by the governance. As a result, stJLP can outperform sUSDe APY in high-yield environments but may underperform when sUSDe yield drops below the minimum guaranteed APY.
Key features of stJLP
Primary minting and redemption, allowing users to seamlessly mint or redeem stJLP against liquid USDe collateral;
Leveraged yield exposure, allowing risk-tolerant investors to capture enhanced returns from sUSDe’s variable APY while assuming increased exposure to yield fluctuations;
Liquid insurance layer, absorbs volatility and associated risks of sUSDe, earning a risk premium from the Senior tranche—offering higher yields for risk-tolerant investors.
ERC-4626 tokenized vault, ensuring full composability with DeFi protocols on the Ethena Network and other blockchains.
Omnichain interoperability powered by LayerZero’s OFT standard, allowing assets to be minted across multiple chains while preserving liquidity and stability on the Converge Network.
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