Strata Markets has introduced a new allocation for its EarnUSD strategy, combining Lido's yield-generating product with leverage from Aave on the senior tranche. The move gives users access to fixed yields and higher allocation caps than previous offerings.
How the strategy works
The EarnUSD strategy already uses Lido's protocol to generate returns. Now Strata Markets is layering on Aave leverage specifically for the senior tranche — the portion of the strategy that takes on less risk in exchange for stable, predictable payouts. By adding leverage, the company aims to boost returns without changing the risk profile of that tranche.
Senior tranches are common in structured finance. They get paid first and absorb losses last. Strata Markets is applying that same logic to a crypto yield product, letting users earn fixed yields while the junior tranche bears more volatility.
Fixed yields and higher caps
The new allocation offers fixed yields, a departure from variable-rate products that dominate the DeFi lending space. Strata Markets also raised the allocation caps, meaning more capital can flow into the strategy before it hits its limit. The company did not disclose the exact cap or yield percentage.
For users, the appeal is straightforward: predictable income with a ceiling on how much can be deployed. The integration with Aave's leverage mechanism is designed to amplify returns on the senior tranche without introducing floating rates.
The strategy is now available on the Strata Markets platform. The company has not announced a timeline for further expansions or changes to the EarnUSD product. Investors looking for fixed yields in crypto will be watching to see how the leveraged senior tranche performs under different market conditions.
