Strata

Strata is a generalized risk-tranching protocol that structures yields from any on-chain or off-chain strategy into two tokenized tranches: a senior tranche (capital-preservation, protected yield floored at a benchmark rate with uncapped upside) and a junior tranche (leveraged, first-loss capital earning a risk premium from the senior tranche). It transforms one-size-fits-all DeFi yields into tailored risk–reward instruments, currently live on Ethena USDe, Neutrl NUSD, Midas mHYPER, and Midas mM1-USD markets.

All yield in Strata comes from the same source: the pooled collateral is staked into a yield‑bearing version of itself. For example, in the Ethena USDe market, USDe is staked into sUSDe, which earns the underlying yield.

The core mechanism that decides how this yield is shared between the two tranches is called the Dynamic Yield Split (DYS). It takes into account:

• the underlying APY of the staked asset,
• a benchmark rate (like the average lending rate for USDC/USDT on Aave v3 Core),
• how much total value each tranche holds (their relative TVL),
• and two risk‑premium parameters (x, y, k) that are set outside the pool.

How the risk premium works. The senior tranche pays a risk premium to the junior tranche. That premium is calculated as:
x + y × (senior‑TVL‑ratio)^k
In return, the senior tranche gets a guaranteed minimum APY equal to the benchmark rate plus any extra upside above that (it is not capped). When more senior capital enters, the senior‑TVL‑ratio rises, which increases the risk premium — and therefore the expected return for the junior tranche.

The junior tranche receives whatever yield is left after the senior tranche has been paid, on top of its own base APY. This effectively levers the underlying yield: junior bears first losses but captures a bigger share if things go well.

Fees. On the current Ethena USDe market, the performance fee is 0%. Redemption fees are 2.5 basis points (0.025%) for the senior tranche and 10 basis points (0.1%) for the junior tranche. These redemption fees are split between the holders of the same tranche and the protocol treasury.

Points program. Strata runs a Strata Points Program that gives out non‑equity points and partner rewards (such as Ethena Points) to early depositors and people who refer others. The program is designed to encourage early participation, but the points do not have any claimed secondary‑market value.

Strata is built by Frontera Labs Inc., which raised a $3 million seed round announced on December 17, 2025. The round was led by Maven11, with Lightspeed Faction as a major investor, and participation from Halo Capital, Heartcore Capital, Anchorage Digital Ventures, Nayt Technologies, Split Capital, and unnamed angel investors. Additionally, Strata was born out of an acceleration program with Ethena Labs, and the Ethena Foundation provided early backing before the product launched. These backers are listed on the Strata homepage under "BACKED BY THE BEST" alongside Ethena (as a strategic partner).