Since PTs forgo points to YTs, they pretty much ALWAYS earn more yield than the underlying. In rare instances such as PT-jrUSDe, however, this might NOT be the case. Let your boy take a look into @strata_fi's jrUSDe and why this might be happening. 👇

♻️ Strata Strata is a yield-tranching protocol built on @ethena_labs' sUSDe. From sUSDe, it spawns off two derivatives: 🔵 srUSDe: Senior tranche that earns STABLE yield 🟢 jrUSDe: Junior tranche that earns VOALTILE yield

🔵 srUSDe As the senior tranche stablecoin, srUSDe is designed to replicate DeFi's risk-free rate - in this case, @aave's USDC and USDT lend rates. This has historically hovered around ~4% APY which is pretty damn good for low risk stablecoin yield.

⚪️ sUSDe While srUSDe earns 4% APY by imitating Aave's USDC and USDT lend rates, recall that its source of yield is actually sUSDe that has a completely different yield profile. Indeed, with sUSDe's current ~5.0% APY, one must ponder WHERE that extra yield ran off to!

🟢 jrUSDe Since srUSDe targets Aave's USD APY and sUSDe earns a different APY, any excess (or shortfall) is redirected towards jrUSDe! So how much APY does jrUSDe earn? Well... it depends on the ratio of srUSDe vs. jrUSDe in circulation!

📚 jrUSDe APY With $161.5m of srUSDe forgoing 1% APY vs. its underlying, this additional yield is fully forwarded to jrUSDe. Since jrUSDe is a teeny portion of TOTAL yield, they end up netting a hefty ~17.3% APY. All in pure stabelcoin yield WITHOUT leverage 🤯

Looking at APYs over time, its interseting to observe teh difference in yield curves between srUSDe and jrUSDe. While this does mean jrUSDe probably isn't suited for the faint-hearted, its average APY is actually 8.4%. That's nearly 2x higher than the senior tranche!