Sierra Protocol has launched SIERRA, a new type of Liquid Yield Token (LYT) on the Avalanche network, giving DeFi users access to real-time, passive yield with no lockups or staking requirements.
Key Takeaways
- Sierra introduces the first dynamically rebalanced Liquid Yield Token on Avalanche, blending real-world asset (RWA) yields with top-tier DeFi protocols.
- SIERRA starts earning yield immediately after purchase and does not require staking, lockups, or minimum balances.
- OpenTrade powers the infrastructure, enabling seamless reserve allocation across RWAs and DeFi strategies.
- A Transparency Dashboard allows users to monitor live portfolio performance and download detailed metrics.
What Happened?
Sierra Protocol has debuted SIERRA, the first dynamically managed Liquid Yield Token on the Avalanche blockchain. This new token aims to redefine decentralized finance (DeFi) yield products by merging real-world asset stability with the flexibility and earning potential of DeFi protocols.
1/ @SierraIsMoney Protocol launches the first dynamically rebalanced Liquid Yield Token (LYT), SIERRA on the @avax, powered by OpenTrade.
— OpenTrade (@opentrade_io) November 13, 2025
The Sierra Protocol was developed using OpenTrade’s yield-as-a-service infrastructure, through which Sierra can seamlessly allocate the… pic.twitter.com/2rCJrNNKmx
SIERRA Token: A New Breed of Passive Income Asset
SIERRA stands apart from traditional yield-bearing tokens by combining investment-grade RWAs like U.S. Treasury money market funds and commercial paper with yield strategies from blue-chip DeFi protocols including Aave, Morpho, Euler, Wildcat, and Pendle.
Instead of being pegged to fiat, SIERRA tokens are backed by stablecoin reserves that generate passive yield for holders. Users can swap USDC for SIERRA through the Sierra web app or Avalanche’s largest DEX, LFJ (formerly Trader Joe). Once acquired, yield begins accruing immediately.
Key features include:
- No staking requirements.
- No lock-up periods or hidden fees.
- No minimum investment thresholds.
Dynamic Rebalancing and Real-Time Transparency
What makes SIERRA unique is its proprietary Risk Framework, which allows for automatic rebalancing of reserves. The system continuously adjusts allocations between RWAs and DeFi protocols based on current market conditions, maximizing yield while managing risk.
Investors can access a Transparency Dashboard on Sierra’s website that offers:
- Real-time performance metrics
- Portfolio composition data
- Downloadable CSVs and API access for deeper analysis
This level of visibility makes SIERRA one of the most transparent and data-rich yield products in the DeFi space.
Powered by OpenTrade’s Institutional Infrastructure
Sierra’s reserve management is supported by OpenTrade, a yield-as-a-service provider offering institutional-grade tools. OpenTrade manages operational workflows for both traditional and decentralized yield sources, providing a unified, secure infrastructure.
Highlights of this integration include:
- RWA collateral stored with Tier 1 financial institutions.
- Assets managed by an FCA-regulated asset manager.
- DeFi vaults protected via Fireblocks’ whitelisting and policy-enforcement tools.
According to Dave Sutter, CEO of OpenTrade:
Strong Support from the Avalanche Community
Launching on Avalanche gives Sierra access to a fast, low-latency Layer 1 blockchain, ideal for real-time portfolio updates and on-chain yield distribution.
Eric Kang, Head of DeFi at Ava Labs, said:
CoinLaw’s Takeaway
In my experience, DeFi projects that combine transparency, utility, and institutional-grade infrastructure tend to stand out. SIERRA is not just another token, it’s a glimpse at how yield products can evolve. What impressed me most is the zero-friction experience for users. No staking. No lockups. Just instant yield, backed by real assets and trusted DeFi protocols. If Sierra keeps delivering on this model, it could quickly become a go-to asset for passive income seekers in crypto.
