Avalanche continues to grow as a foundation for financial innovation, where digital assets meet the stability and structure of traditional finance. The latest example of this progress is the launch of Sierra, a new protocol built on Avalanche and powered by OpenTrade.

Sierra Protocol introduces the SIERRA token, a Liquid Yield Token (LYT) designed to simplify access to yield backed by a diversified portfolio of assets. The token’s structure reflects returns from a blend of real-world and onchain sources, without the lockups, staking steps, or hidden fees often found in other systems.

This marks a new model for how yield-oriented assets can function transparently on Avalanche: accessible, adaptive, and built on a foundation of real assets.

A New Approach to Real-World Yield

SIERRA is available within the Avalanche ecosystem through the Sierra app and LFJ. Its structure is backed by reserves that generate yield and are dynamically adjusted through Sierra’s Risk Framework.

These reserves include investment-grade real-world assets (RWAs) such as U.S. Treasury money-market funds and commercial paper, as well as blue-chip DeFi protocols like Aave, Morpho, and Pendle. Through its partnership with OpenTrade, Sierra uses OpenTrade’s institutional-grade “yield-as-a-service” infrastructure to allocate reserves between these traditional and onchain sources.

This design allows Sierra to manage its reserves flexibly and transparently, adjusting to market conditions while maintaining broad diversification across both real-world and digital yield channels.

A Foundation Built on Proven Infrastructure

Sierra is powered by OpenTrade, a platform that has become central to Avalanche’s growing RWA ecosystem. OpenTrade provides the infrastructure that allows projects to combine regulated financial products with onchain access in a secure, compliant way.

OpenTrade has an established track record on Avalanche, powering multiple RWA integrations across global markets.

In Colombia, fintech platform Littio used OpenTrade to deliver yield-bearing U.S.-dollar accounts, processing more than 80 million USD in deposits through Avalanche’s infrastructure. In Asia, WOO X introduced RWA Flexible Term Vaults, which offer daily compounding and instant redemption for U.S. Treasury-backed assets. And in Europe Criptan, the largest exchange in Spain, offers users some of the best returns on euro balances in the market using OpenTrade’s euro-denominated yield products, which run on both EURC and EURØP on Avalanche.

These examples demonstrate how OpenTrade’s system connects global users to real-world yield through Avalanche’s high-speed, low-cost network. All collateral is held by regulated institutions, and every transaction is executed transparently onchain.

With Sierra, that same tested infrastructure now supports a product designed to adjust dynamically to market conditions — a first for the Avalanche ecosystem.

Avalanche and the Expanding Real-World Asset Ecosystem

Avalanche has become a leading platform for RWA innovation, offering the performance and flexibility needed for both startups and global financial institutions. Today, more than $1.24 billion in RWA value lives on Avalanche, representing a growing range of assets from money-market funds to short-term credit. Transfer volume across RWA products on the network recently surpassed $18B in a single month, reflecting the accelerating adoption of tokenized finance.

This growth is supported by an expanding group of partners building on Avalanche. IntainMARKETS runs tokenized structured-finance products on an Avalanche Layer 1 (L1), with more than $26 billion in loans administered onchain. Securitize continues to issue regulated digital securities on Avalanche, while Republic has introduced tokenized investment opportunities for retail and institutional users. Grove Finance recently announced plans to deploy up to $250M in RWAs on Avalanche, further strengthening the ecosystem.

With growing onchain liquidity, diverse asset types, and proven institutional integrations, Avalanche is demonstrating that tokenized finance is not a future concept but an active, scalable reality.

For more information about Sierra and OpenTrade, visit sierra.money and opentrade.io.