jrNUSD
Strata Junior NUSD
Junior NUSD is a yield-bearing investment product that represents the junior risk tranche in Strata’s structure. It offers leveraged upside to sNUSD APY while simultaneously functioning as a liquid insurance pool for srNUSD. By underwriting sNUSD’s underperformance against the benchmark (Ethena sUSDe APY) and underlying strategy risks, jrNUSD earns a risk premium from the senior tranche, delivering potentially higher yield for risk-tolerant investors. jrNUSD captures the residual yield after the senior tranche is paid and absorbs any shortfall when sNUSD APY falls below the guaranteed minimum yield for srNUSD, which is tied to the benchmark rate. It also provides first-loss protection to srNUSD in the event of NUSD insolvency. As a result, jrNUSD tends to outperform sNUSD in high-yield environments but may underperform when sNUSD APY falls below the benchmark rate.
Mint
jrNUSD can be minted by depositing NUSD/USDC/USDT/USDe. The amount of jrNUSD received is determined by the jrNUSD/NUSD exchange rate minus any applicable minting fees.
At the current stage of protocol implementation:
USD/USDC/USDT/USDe and sNUSD can be used to mint jrNUSD through the Strata UI.
Minting fees are currently waived.
jrNUSD can also be acquired on secondary markets using any asset on DEXs.
Redeem
When jrNUSD is redeemed, the user receives NUSD/sNUSD based on the jrNUSD/NUSD exchange rate, minus any applicable redemption fees.
At the current stage of protocol implementation:
jrNUSD can be redeemed for NUSD and sNUSD through the Strata UI.
0–20 bps redemption fee is applied depending on the srNUSD coverage level. The applicable fee is displayed on the UI prior to confirmation.
jrNUSD can be redeemed for sNUSD after a cooldown period that ranges from zero up to five weeks, depending on the srNUSD coverage level. The applicable cooldown is displayed on the UI prior to confirmation. During this cooldown period, jrNUSD holders remain exposed to jrNUSD performance. Once the cooldown ends, sNUSD can be claimed or unstaked for NUSD in the Portfolio section.
jrNUSD can also be redeemed for NUSD, subject to the sNUSD cooldown plus an additional 10-day cooldown, consistent with Neutrl’s sNUSD unstaking period. NUSD can then be claimed in the Portfolio section.
jrNUSD redemption is temporarily paused when the srNUSD coverage ratio falls below the min. threshold.
jrNUSD can also be traded for other assets on DEXs.
The jrNUSD Dashboard on the Strata app displays the current jrNUSD/NUSD exchange rate, APY, overperformance, and market cap, along with full historical data. All metrics are updated in real time, giving users a clear and accurate view of jrNUSD’s performance at any moment.
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