📖Introduction

The Sierra Protocol is a decentralized money protocol that supports SIERRA, a Liquid Yield Token (LYT) built to deliver the best risk-adjusted returns across TradFi, CeFi and DeFi.

Backed by a diversified portfolio of real-world financial assets (RWAs) and blue-chip DeFi collateral, Sierra will deliver stable risk-adjusted returns, deep liquidity, and seamless integrations.

By holding SIERRA, users passively earn between 6 to 12% APY, compounded daily without any lock-ups, hidden fees, or requirements to stake or claim rewards.

SIERRA is natively issued on the Avalanche blockchain and can be seamlessly bridged to Ethereum and other blockchain networks via our partnership with LayerZero.

What is Liquid Yield Token (LYT)?

A Liquid Yield Token (LYT) is an ERC-20 token that offers yield to holders, where the yield is derived from income-generating assets that serve as the reserve collateral backing the LYT.

Unlike traditional staking or yield farming where assets are locked in smart contracts, LYTs maintain secondary market liquidity that allows holders to buy or sell the LYTs without locking or redeeming their capital from the underlying vault. Additionally, LYTs enable composability with CeFi and DeFi platforms, including CEXes, DEXes, lending markets, yield platforms, consumer apps and more.

As yield accrues, LYTs can either rebase or appreciate in price. Rebasing involves growing the user's balance of an LYT over time whereas price appreciation means a user's balance remains fixed but the USD value of their holdings increases. SIERRA is designed to appreciate consistently over time as yield passively accrues, which helps to enable seamless integrations across CeFi and DeFi platforms.

Is SIERRA a yield-bearing stablecoin?

No, SIERRA is not a stablecoin because its value is not pegged to a fiat currency. SIERRA is designed as a LYT that appreciates against USD over time as yield generated by the reserve collateral passively accrues.

Is the token fully collateralized?

Yes, each token is backed 1:1 by USDC, USDT and RWA- and DeFi-backed collateral held in custody under a bankruptcy remote structure to ensure transparency and security.