Sierra Protocol has officially launched SIERRA, a first-of-its-kind Liquid Yield Token (LYT), on the Avalanche network.
Unlike traditional yield products that require staking, minimum deposits, or waiting periods, SIERRA lets users earn yield instantly and transparently. Anyone can swap USDC for SIERRA directly through the Sierra web app or LFJ (formerly Trader Joe), the largest decentralized exchange on Avalanche.
A Smarter Way to Earn Yield
The concept is simple: once you hold SIERRA, your yield begins accruing automatically. There are no hidden fees, lockups, or complex staking processes. This simplicity, paired with Sierra’s design, could make it one of the most user-friendly yield options available in DeFi today.
What is a Liquid Yield Token (LYT) and why do LYTs represent an exciting new type of asset in the crypto industry
— SIERRA (@SierraIsMoney) November 13, 2025
Unlike stablecoins that stay fixed to the value of the U.S. dollar, Liquid Yield Tokens are backed by reserves that generate returns. In SIERRA’s case, these reserves come from both real-world assets (RWAs) like U.S. Treasury money market funds and blue-chip DeFi protocols such as AAVE, Euler, and Pendle. These two sources combine to create a diversified portfolio that adjusts dynamically to market changes through Sierra’s Risk Framework.
To make things even more transparent, Sierra offers a Transparency Dashboard where anyone can monitor performance in real time. Users can view live metrics, download data, or even integrate it into their own tools via API. This level of visibility is rare in DeFi, where many yield products still operate like black boxes.
Building the Bridge Between DeFi and Real-World Assets
Sierra’s flexible reserve management is made possible through its partnership with OpenTrade, an institutional-grade platform backed by a16z Crypto and Circle. OpenTrade’s technology handles the operational side of Sierra’s reserves, ensuring that real-world assets are safely held with Tier 1 financial institutions and managed by a regulated asset manager. Meanwhile, crypto assets are protected using Fireblocks’ custody infrastructure, a tool trusted by some of the biggest names in digital finance.
Discover why OpenTrade is building on @avax in the series ‘Why Avalanche’ featuring OpenTrade Co-Founders @BTC_Dave and @BTC_Jeff.
“From a technology perspective, it really provides us an excellent foundation on which to build, whether its speed, scalability, or privacy.” -… pic.twitter.com/hZ3798PMyc
— OpenTrade (@opentrade_io) November 10, 2025
According to Eric Kang, Head of DeFi at Ava Labs, Sierra’s launch on Avalanche shows how real-world assets and DeFi can work together. The result is a seamless, transparent, and accessible way for anyone to earn on-chain yield.
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This articles is written by : Fady Askharoun Samy Askharoun
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