Strata Tranches

Ethereum

Audited on 2025/10/28

No open critical findings

Summary

In this audit, we reviewed Strata Money Tranches. Strata Money Tranches is a perpetual risk tranching protocol built around the Ethena ecosystem, primarily leveraging USDe and sUSDe. The system is divided into two tranches, Senior and Junior Tranches (SRT and JRT), allowing investors to allocate their USDe or sUSDe based on their individual risk appetite. The Senior Tranche aims to provide a steady minimum annual percentage rate (APR) and benefits from coverage supplied by the Junior Tranche in weaker market conditions, offering a more conservative investment profile. In contrast, the Junior Tranche takes on additional risk by providing this coverage in exchange for the potential to earn higher, uncapped yields. Although deposits can be made in either USDe or sUSDe, the protocol maintains its internal accounting entirely in USDe. All deposits from both tranches are aggregated into a unified Strategy contract, which manages and deploys the combined capital. Additionally, the `TrancheDepositor` contract adds functionality to allow users to deposit using other tokens, which are then converted into USDe and deposited into the user's desired vault contract. Yield distribution follows a structured approach: the Senior Tranche receives a stable base yield, benchmarked to the Sky Savings Rate, while retaining some exposure to the upside potential of the sUSDe APY. The Junior Tranche, on the other hand, earns all excess yield that remains after the Senior Tranche’s target return has been met. The codebase is of high quality and well architected. It has been intentionally designed to be very modular and extendable with additional strategies in the future. One Medium-severity finding has been identified, where the `TrancheDepositor` contract does not properly account for scenarios of decimal mismatch in swaps, the rest of the findings are of low to informational severity.

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