Sierra Protocol has deployed a new SIERRA token contract natively issued on Ethereum. This deployment enhances SIERRA's security and brings primary liquidity through minting and redeeming directly on Ethereum.

Why SIERRA is deployed on Ethereum

The majority of SIERRA’s adoption has occurred on Ethereum and faces limitations to scale further. The existing version of SIERRA on Ethereum is a LayerZero Omnichain Fungible Token (OFT), using the simple implementation developed by LayerZero. That implementation does not include enhanced security features such as pausing the protocol, rate limits on cross-chain transfers, freezing balances, or recovering frozen assets. Because the OFT contract is not upgradable, adding those protections requires deploying a new OFT contract.

Rather than redeploy a new OFT implementation on Avalanche, where SIERRA has been natively minted, we are deploying SIERRA natively on Ethereum. This approach simplifies the user experience by unlocking SIERRA's primary liquidity on the network where most of the adoption has occurred. Authorized Participants can now mint directly on Ethereum and use applications like Uniswap, Pendle and Morpho without relying on a bridged asset. This solution directly addresses consistent feedback raised by curators, hedge funds, and lending protocols around looping SIERRA and its Principal Tokens (PTs).

What’s New for SIERRA Holders

The new SIERRA token’s contract address on Ethereum is: 0xBcEb5f6877d979EC621AE694dA1102CB95691aD3. We have deployed the same token smart contract on Ethereum that was deployed for SIERRA on Avalanche, which was audited extensively by Cantina.

Authorized Participants, such as market makers and hedge funds that have onboarded with Sierra Reserve Limited, can mint the new SIERRA token directly on Ethereum with the exact same workflow as minting SIERRA on Avalanche.

What Stays the Same

As a SIERRA holder, you can continue to hold the existing SIERRA tokens on Avalanche and OFT version on Ethereum. We will continue to support liquidity for these tokens and they will continue to earn intrinsic yield. Yield accrues exactly as before, through an appreciating price, with no staking, claiming, or lockups required to earn yield.

The entire infrastructure stack powering Sierra is the same for the new SIERRA token on Ethereum and the existing SIERRA token on Avalanche. All vault infrastructure is powered by OpenTrade’s institutional-grade yield platform. Custody of all reserve assets relies on Fireblocks with the same address whitelisting, signing quorum and transaction policies enforced. We utilize Hypernative for 24/7/365 monitoring and alerting, as well as Chainalysis for AML analytics and Station70 for disaster recovery.

The Reserve Management Strategy backing SIERRA also remains unchanged. The new SIERRA token on Ethereum is backed by PGIM's AAA-rated CLO ETF (PAAA), a portfolio of investment-grade commercial paper managed by Five Sigma, an FCA-regulated asset manager, and overcollateralized lending through the Gauntlet Prime Vault on Morpho on Base, primarily lending USDC against cbBTC. All underlying reserves deployed into OpenTrade vaults will remain on Avalanche.

What's Next for SIERRA

We will deploy a new OFT implementation that includes the full set of enhanced security features like pausing, freezing and rate limits. This will enable SIERRA to be bridged from Ethereum back to Avalanche and into other ecosystems, extending SIERRA's reach across more chains and applications with a more secure foundation.