Sierra Monthly Report - October 2026

Sierra Protocol Monthly Report - October 2026

‍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 partnerships@sierra.money if you would like to explore partnership opportunities, have any questions, or generally have feedback on how we can improve Sierra going forward. 

Highlights

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• Sierra Protocol TVL: $43.9M at month-end, across SIERRA ($37.2M) and SPLUS ($6.7M)
• Protocol upgrades live: permissionless minting and claimable redemptions for Sierra vaults, plus mint rate limits and contract-level OFAC screening
• Reserve additions: OpenTrade’s Prime+ Vault and the Prime+ DeFi Exposure Vault, together 36.8% of reserves at month-end; commercial paper fully matured
• New Sierra brand and website launched October 22
• SIERRA’s variable yield averaged 5.1% for the month; SPLUS yields 5.2% and is adjusted monthly
• Final Pendle SIERRA market concluded October 21, completing the Summit Peaks program

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Sierra Protocol upgrades

On October 8 we deployed smart contract upgrades across Sierra’s vaults. Until now, minting and redemption were limited to Authorized Participants. Sierra vaults can now be configured to let any wallet mint and redeem directly, and can enable claimable redemptions: a three-step flow in which a user requests a redemption, the protocol processes it, and the user then claims their USDC.

The upgrades also add per-vault daily mint rate limits, a dedicated Deposit Role for special deposit functions that is governed by a timelock, and OFAC sanctions screening on deposits, redemptions and transfers, executable at the contract level. Each feature is configurable per vault. SIERRA keeps permissioned minting and redemptions without a claim step, and gains the rate limits, the Deposit Role and OFAC screening. 

For full details, see our post here: https://www.sierra.money/resource/sierra-protocol-upgrades 

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A new look for Sierra

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On October 22 we launched a refreshed Sierra brand and a new website at sierra.money. Sierra has outgrown the brand it launched with. Most people first met us through SIERRA, our flagship vault token and the Summit Program. That made Sierra look like a single DeFi product that lacked differentiation or scale.

The reality today is much broader. Sierra's core business has evolved into institutional-grade RWA vaults. Neobanks and wallets use the protocol to power their own yield products. Asset issuers use it to deploy onchain vaults backed by their own assets. SIERRA is one vault built on the protocol, but far from the whole of it.

Through Sierra Protocol’s network of partners, every vault sits on enterprise-grade infrastructure: audited smart contracts, a bankruptcy-remote structure, institutional custody with tier 1 banks and an FCA-regulated asset manager. We’ve built an institutional-grade stack to support the protocol and our brand now reflects that standard.

Our blog posts and past monthly reports now live at https://www.sierra.money/resources. Read more about the refresh here: https://www.sierra.money/resource/a-new-look-for-sierra 

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TVL and yield

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Sierra Protocol TVL was roughly flat in October, finishing the month at ~$43.9M across SIERRA (~$37.2M) and SPLUS (~$6.7M), compared with ~$44.9M at the end of September. SIERRA is paying out nearly $500K per quarter to holders, and has now officially paid out over $1,000,000 all-time.

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SIERRA targets a competitive volatility-managed and risk-adjusted yield while maintaining maximum liquidity through primary and secondary market venues. As of October 31, SIERRA was yielding 5.1% based on trailing 30-day APY. 

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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.

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Note: from August 20 on, this exchange rate reflects that of SIERRA (Ethereum); prior to that, the exchange rate is for SIERRA (Avalanche).

Reserve allocations

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In October we added two new yield sources to SIERRA’s backing, greatly improving the diversification of yield sources, while also minimizing expected volatility in yield generation: OpenTrade’s Prime+ Vault and the Prime+ DeFi Exposure Vault. At month-end, Prime+ made up 24.8% of SIERRA’s reserves ($9.0M) and the Prime+ DeFi Exposure Vault 12.0% ($4.4M). During the month our remaining commercial paper matured, the Morpho Gauntlet Prime allocation was reduced from 26.5% to 5.4% of reserves, and AAA CLOs reduced from 31.2% to 21.2%. 

Prime+ is actively managed by Five Sigma Finance, a UK-regulated asset manager, and invests in asset-backed securities, mortgage-backed securities, CLOs and short-duration Treasury instruments. The strategy was assessed under Sierra’s Risk Framework and approved for SIERRA’s reserves with a maximum portfolio allocation of 50%. The securities are safeguarded at Tier 1 banks, Five Sigma provides weekly reserve verifications, and as with all of SIERRA’s reserves, Sierra uses Fireblocks for custody. Prime+ is also now available as a yield source for every permissionless vault issued by the Sierra Protocol.

Prime+ DeFi is actively managed by AWR Capital, a London-based algorithmic trading fund. This strategy primarily allocates to delta-neutral funding rate arbitrage and basis/carry trades, focused on digital assets specifically. 

More information on this strategy can be found here: https://www.sierra.money/resource/sierra-expands-reserve-strategy-to-opentrade-prime-vault 

Sierra’s reserve distribution overtime is shown below:

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

Pendle and the Summit Program

With the completion of the last SIERRA Pendle market on October 21, the last Peaks from the Summit Program have been issued and the program is complete, with 73,295,895 Peaks earned in total. As announced last month, Peaks will convert to SGT allocations at TGE. Thank you to everyone who held SIERRA PTs and provided liquidity across our four Pendle markets. 

As always, we are excited to have you join us as we build Sierra into the industry-leading permissionless RWA vault protocol. 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! 

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Sincerely,

Mitch and Kevin

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