We are proud to provide the latest monthly report for the Sierra Protocol!  We publish these regularly to ensure all community members have ready access to the most pertinent information across the Sierra ecosystem. 

Please contact us at info@sierralabs.xyz if you would like to explore partnership opportunities, have any questions, or generally have feedback on how we can improve Sierra or this report going forward.

Highlights

• Total SIERRA outstanding: $48.5M on Avalanche and $34.5M bridged to Ethereum

• Month-on-month TVL growth: 21%

• SIERRA PT yields: 9.56%, total liquidity: $23.8M, +/- 10% depth: $3.9M. New market launched Thursday August 6 - be sure to roll over your positions

• Reserve additions: TradeFlow Trade Finance, target allocation: 10% (max: 15%)

• SIERRA’s yield averaged 3.8% for the month - expect this to continue rising as we add new allocations

• Native support for Ethereum, now live!

• Major security upgrades throughout the stack - and all critical functions are now behind a 48 hour time lock

• Reminder: the Summit PEAKS program is in full swing and will run through the end of Q3

Sierra Protocol Upgrades 

We are very excited to announce that SIERRA is now natively supported on Ethereum in addition to Avalanche. This is in response to overwhelming demand from allocators and protocols on Ethereum and removes the bridging step that has, until now, been needed to get SIERRA on mainnet. Note: Sierra will automatically whitelist all APs to this new contract, but APs will need to whitelist the new Ethereum contract in any flows: https://etherscan.io/address/0xBcEb5f6877d979EC621AE694dA1102CB95691aD3 

On the security front, Sierra has deployed an instance of OpenZeppelin's TimelockController to govern every non-operational, administrative role for the protocol. All privileged actions, including protocol upgrades, parameter changes and role assignments, are now enforced by a minimum 48-hour timelock before they can execute. A timelock is a smart contract that enforces a predefined delay before certain actions can be executed. The delay is encoded in the timelock smart contract and provides stakeholders with time to review upcoming changes and respond as needed. It also adds a last line of defence should any malicious or unintended changes ever be implemented.

For more information, please see our post here: https://blog.sierra.money/blog/sierra-timelock-access-control

TVL and Yield

Sierra’s TVL grew 14% over June, and we followed that up with another great month of growth adding another 21% to assets in the protocol. We are just shy of $50M in SIERRA now, which continues to be one of the strongest performing assets in the industry - something we are quite proud of given how rough the market environment has been throughout most of 2026.  By the time you are reading this, we will also have officially broken the $500,000 level for all-time yield paid out on SIERRA. At current TVL and yield levels, we are now paying out over $1.5M per year to partners.

SIERRA targets a competitive volatility-managed and risk-adjusted yield while maintaining maximum liquidity through primary and secondary market venues. As of July 31, SIERRA yielded 3.8% over the month on an annualized basis and has yielded 4.4% over the past 7 days.

SIERRA is designed to reflect accrued yield in its price, rather than rebasing or through interest distributions, thus continuously increasing its exchange rate against USDC over time. This exchange rate is updated continuously to ensure the most accurate accounting possible as the underlying vaults appreciate in value. The SIERRA/USDC exchange rate can be seen below and can be viewed at any time, along with SIERRA’s APY as well as that of each underlying reserve vault, on SIERRA’s transparency dashboard: https://app.sierra.money/transparency.

Sierra Protocol Upgrades 

We are pleased to announce that we have added a new reserve backing to the portfolio: institutional trade finance through TradeFlow’s USD fund. Trade finance helps international businesses buy and sell goods by providing short-term financing as the goods are transported from the seller to the buyer. For example, a company producing coffee in the United States does not want to pay the coffee beans producer in Brazil until the coffee beans shipment reaches the United States. Similarly, the producer in Brazil wants to be paid upon shipping the coffee beans, rather than waiting several weeks or months until the shipment has arrived.

Trade finance solves this timing problem between buyers and sellers by paying the seller immediately upon the shipment departing and then collecting payment from the buyer upon the shipment arriving. Historically, banks dominated trade finance but due to frictions like changing capital requirements (e.g. Basel III) and increasing operational expenses, traditional lenders have taken a step back from the sector and new non-bank financial intermediaries have emerged. 

For more information on the strategy and specific manager, please refer to our detailed blog post here: https://blog.sierra.money/blog/reserve-strategy-trade-finance

Our commercial paper portfolio continues to roll over into new global issuers, such as Nestle, Mondelez, Swedbank and Verizon Communications. As a reminder, our portfolio is diversified across investment grade issuers and maturities (all <60 day duration) - and can be viewed at any time through the reserve reports on our transparency dashboard here.

Sierra’s reserve distribution overtime is shown below:

As a reminder, a full real-time breakdown of reserves are available at all times at https://app.sierra.money/transparency.

Integrations and Partnerships

Our latest (short) Pendle market has come to an end and expired August 6, at which point we launched another new market for SIERRA. This market will be the final one before the end of our Summit campaign and runs through October 22.

Gauntlet and Presto (and more soon to come) will be supporting SIERRA’s PTs in their curated vaults on Morpho. Gauntlet will be supporting SIERRA PTs in its USDC and USDT Frontier Markets and Presto will be supporting through its USDC Forte market, all on Ethereum. This opens up multiple new avenues for allocators to loop their PT positions and earn double-digit yields over the coming months. If you are an allocator that would like to gain direct mint/redeem access for SIERRA, please reach out.

For more information on curator support for SIERRA’s PTs, check out the blog post here: https://blog.sierra.money/blog/sierra-pt-collateral-gauntlet-morpho

Summit Program

As a reminder, we kicked off our points campaign, referred to as our Summit PEAKS Program, in November. Participants are able to earn PEAKS for engaging in a range of activities across DeFi and CeFi with SIERRA. We will continuously roll out new ways to participate as the Program continues, so be sure to check in frequently. 

Participants can view current opportunities and track their progress on our dashboard here: https://app.sierra.money/peaks. Epochs will run from Thursday 0:00:00 UTC through Wednesday 23:59:59 UTC, and updates to the dashboard will be reflected following the completion of each epoch.

As always, we are excited to have you join us as we build this novel protocol into the industry-leading liquid yield token issuer, with SIERRA as our flagship LYT. Stay tuned as we continue to roll out updates over the coming weeks and months, and please reach out if you would like to work together in any way. 

Thank you for your time and attention, and welcome to the Sierra Community! 

Sincerely,

Mitch and Kevin