For years, DeFi and TradFi stood on opposite ends of the financial spectrum: one permissionless and composable, the other regulated and institutionally controlled. But that divide is rapidly disappearing. Today, we’re witnessing a convergence where DeFi is evolving with stronger security, risk management, and real-world integration, while TradFi is adopting DeFi’s core innovations to modernize legacy infrastructure and access new yield sources.

TradFi is increasingly embracing three foundational elements of DeFi:

1. Uncorrelated yields: powered by funding rate arbitrage, crypto-native lending, automated market-making, staking-based network security etc.

2. Composability: a modular financial infrastructure that enables seamless integration of protocols and assets, allowing real-time deployment and settlement of sophisticated on-chain strategies.

3. T+0 liquidity: 24/7 global markets without intermediaries or settlement delays.

This convergence is not only inevitable but also already underway, redefining the future of finance.

Ethena embodies all three DeFi innovations in a single product - demonstrating how funding rates and staking rewards can be harnessed to create a scalable, composable synthetic dollar. By merging crypto-native yield generation with institutional-grade infrastructure, Ethena delivers a compelling new yield alternative for TradFi allocators seeking returns that are both uncorrelated and programmable.

In doing so, Ethena is actively bridging the gap between DeFi, CeFi, and TradFi, packaging crypto-native yield into institutional-grade products that traditional institutions can trust and deploy at scale.

Why does Ethena’s yield stand out?

1. Crypto-native real yield, at scale. It combines perpetual‑funding rates with staking rewards, one of the few “real‑yield” combos that has proven it can handle multi‑billion‑dollar demand.

2. A hedge against TradFi rates. So far, funding rates and staking yields have shown a weak correlation to real world interest rates, giving portfolios a rare diversifier.

3. Custody that TradFi trusts. Collateral is held with regulated, reputable institutions, providing the transparency and security required by traditional financial underwriters..

Strata is a perpetual risk-tranching protocol designed to offer structured yield products on Ethena assets and other crypto-natives yields. Strata re-packages USDe yield into two liquid, composable tokens: Strata Senior USDe (srUSDe) and Strata Junior USDe (jrUSDe). This dual-token design introduces a meaningful shift in risk management by splitting yield and risk exposure into distinct senior and junior tranches.

As DeFi matures, investor demand is shifting from one-size-fits-all yields to tailored yield solutions aligned with individual risk-reward preferences. While elegant in its simplicity, the one-size-fits-all design of Ethena’s sUSDe is not optimal for many investors across DeFi and TradFi. Capital allocators have varying risk appetites and return expectations, which a single yield product cannot fully satisfy.

Strata is purpose-built to deliver structured yields on Ethena’s carry and basis strategies by segmenting risk into distinct tranches, each tailored to match the risk-return profiles of different investor types. This tranching unlocks targeted exposure, improves capital efficiency, and catalyzes the next phase of Ethena’s growth: one that is more inclusive, scalable, and institution-ready.

srUSDe represents the senior risk tranche in Strata’s structure – a yield-bearing, overcollateralized synthetic dollar backed by USDe and additional coverage from the junior tranche. It delivers superior risk-adjusted returns by offering uncapped upside exposure to sUSDe yield, while ensuring principal protection and a guaranteed minimum yield linked to the DeFi benchmark rate.

srUSDe offers the best-in-class risk-adjusted yields with similar risk profile as lending USDe/stablecoins on Aave, superior risk profile than Sky Savings, and historically delivering significantly higher yields than both. srUSDe is ideal for conservative capital in DeFi and TradFi seeking predictable, low-risk returns that outperform both DeFi and TradFi benchmarks.

Strata’s senior tranche is tailored for institutions, DAOs, and TradFi savers seeking predictable, low-volatility yield with minimized crypto-native risk.

jrUSDe represents the moderate-risk, higher-reward junior risk tranche in Strata’s structure. It provides leveraged upside to sUSDe yield while simultaneously functioning as a liquid insurance pool for srUSDe. By absorbing the risk of sUSDe yield underperforming the DeFi benchmark rate, jrUSDe earns a risk premium from the senior tranche - offering potentially higher yields for risk-tolerant investors.

jrUSDe is ideal for DeFi-native users, funds, and yield farmers seeking higher yields with slightly higher risk tolerance.

By transforming sUSDe into risk-tiered tranches, allowing different types of investors to access yield based on their risk appetite, Strata is redefining how Ethena’s crypto-native yield is accessed, managed, and scaled.

• Tailored Risk Exposure
  Conservative investors prioritize predictable, low‑risk returns, while risk-tolerant users seek higher-yield opportunities with greater upside.

• Enhanced Risk-Return Pricing
  Splitting USDe yield into senior and junior tranches enables real-time and transparent market-based pricing of risk and returns.

• Capital-Efficient Access
  Both tranches are tokenized as fully permissionless and composable assets, enabling seamless integration across DeFi and CeFi. This design offers enhanced capital efficiency, flexibility, and broad accessibility for a wide range of users.

Strata, alongside Ethena, is driving the convergence of DeFi and TradFi through institutional-grade structured yield products, redefining how crypto-native yield is accessed, managed, and scaled across both institutional and retail investors. By combining Ethena’s yield engine with Strata’s risk tranching, it democratizes access to tailored, risk-adjusted yields by unlocking a new class of investment products that were previously available only to TradFi institutions. By merging traditional structured finance with DeFi’s programmability and composability, Strata delivers enhanced risk-adjusted yields and capital efficiency, reinforcing USDe’s position as a core asset for scalable, programmable crypto-native yields in DeFi.

Join us as we build the next era of DeFi together with Ethena.

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