# Welcome to Strata

Strata is a generalized risk-tranching protocol that brings structured yield products to any on-chain or off-chain yield strategy by splitting yield into two tokenized risk-based tranches, each tailored to distinct risk–reward profiles.

The protocol introduces two liquid and composable tokens built on the underlying yield product, **Strata Senior Tranche** and **Strata Junior Tranche**. For e.g., Strata Senior USDe (srUSDe) and Strata Junior USDe (jrUSDe) offer structured yields on Ethena’s reward-bearing synthetic dollar, sUSDe.

<figure><img src="https://content.gitbook.com/content/fOoKrLDBvnKV3tBN5lYD/blobs/dAuyyvoi3PWJX7DcH458/2%20(1).png" alt=""><figcaption></figcaption></figure>

**Strata Senior Tranche**\
An over-collateralized, yield-bearing synthetic dollar, representing the senior risk tranche in Strata’s structure. It delivers superior risk-adjusted yield by providing protection against underlying strategy and collateral risks, guaranteed minimum yield tied to the benchmark rate, and uncapped upside exposure to the underlying yield.

**Strata Junior Tranche**\
A yield-bearing investment product, representing the junior risk tranche in Strata’s structure. It provides leveraged upside to the underlying yield while simultaneously functioning as a liquid insurance pool for the senior tranche. By absorbing excess risk and volatility associated with the underlying yield strategy, junior tranche earns a risk premium from the senior tranche, delivering potentially higher yields for risk-tolerant investors.

Strata launched its first structured yield products on 13th October 2025, built on Ethena's USDe. Strata is a fully on-chain protocol with a modular, chain-agnostic architecture that enables expansion beyond USDe into a broad range of USD and non-USD assets and strategies across multiple ecosystems. These include curated lending vaults, managed multi-strategy vaults, exotic delta-neutral strategies, tokenized private credit, high-yield RWAs etc. As Strata evolves, it becomes the default chassis for the next generation of on-chain structured yield products, with its risk-tranching protocol serving as the engine that powers them.

{% hint style="success" %}
Strata’s risk-tranching protocol re-engineers one-size-fits-all yields into two tokenized tranches, purpose-built for distinct risk–reward profiles.
{% endhint %}

{% hint style="info" %}
Website: [https://strata.markets](https://strata.markets/)

Twitter: <https://x.com/strata_markets>

Discord: <https://discord.gg/sHtZDvTPxB>
{% endhint %}