Senior Tranche (e.g. srUSDe, srUSDat, srNUSD)
Senior tranche is an over-collateralized, yield-bearing synthetic dollar, representing the senior risk tranche in Strata’s structure. It delivers superior risk-adjusted yield by providing protection against underlying strategy and collateral risks, guaranteed minimum yield tied to the benchmark rate, and uncapped upside exposure to the underlying yield.
Junior Tranche (e.g. jrUSDe, jrUSDat, jrNUSD)
Junior tranche is a yield-bearing product, representing the junior risk tranche in Strata’s structure. It provides leveraged upside to the underlying yield while simultaneously functioning as a liquid insurance pool for the senior tranche. By absorbing excess risk and volatility associated with the underlying yield strategy, junior tranche earns a risk premium from the senior tranche, delivering potentially higher yields for risk-tolerant investors.