Mitchell, cofounder of Sierra Protocol, explains why most stablecoin yield goes to issuers—and how liquid-yield tokens can pass that yield to holders. We dig into where yield actually comes from (perp basis funding, over-collateralized lending, Pendle PTs, MM vaults), Sierra’s diversified reserve management and risk framework, and why utility (CeFi collateral, DeFi integrations, payments) matters as much as APR. We cover DeFi maturity (institutional UX, token value accrual), composability trends, cold-start tactics (permissionless DeFi + points), and Sierra’s roadmap: audit-passed launch, points, integrations, and a governance token airdrop by end of Q2 next year. If you care about stablecoins evolving beyond “zero yield,” this one’s for you.
Timestamps
[00:00] Mitchell’s path: economist → WOO Exchange → Sierra Protocol
[00:02] The problem: stablecoin yield accrues to issuers (Tether/Circle)
[00:04] What is a liquid-yield token? Yield sources & passing it to holders
[00:05] Yield 101: perp basis (market-neutral), over-collateralized lending, others
[00:08] Risk lenses: liquidity, credit, exchange, smart-contract, oracle; risk-adjusted yield
[00:11] Utility matters: hold, borrow, LP, use as perp collateral, payments/cards, custodians
[00:12] CeFi angle: posting yield-bearing collateral to offset funding costs
[00:13] Cold start: permissionless DeFi integrations + points program incentives
[00:15] Key differentiation: diversified reserve strategy, daily rebalancing, transparency
[00:17] Macro: incumbents vs new yield-bearing stables; why users will demand yield
[00:17] DeFi trends: new DeFi-centric L1/L2s, perp wars, deep composability (Pendle → Aave loops)
[00:19] Pro UX & token value accrual (buybacks/fees) vs last cycle’s “free airdrop” era
[00:21] DeFi maturity: institutional-grade UX, Coinbase x Morpho “DeFi mullet”
[00:23] 10-year bets: stablecoins/tokenization & on-chain lending
[00:25] Sierra’s focus: single product, massive utility (CeFi + DeFi), global access
[00:28] Roadmap: ~Oct launch (audit-passed), integrations, points → governance token by end Q2
[00:30] The ask: users, partners (CeFi/DeFi/payments/custody), aligned investors
Connect
https://www.linkedin.com/in/mitchell-w-nicholson/
https://sierra.money/
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DisclaimerNothing mentioned in this podcast is investment advice and please do your own research. Finally, it would mean a lot if you can leave a review of this podcast on Apple Podcasts or Spotify and share this podcast with a friend.
Disclaimer
Nothing mentioned in this podcast is investment advice and please do your own research. Finally, it would mean a lot if you can leave a review of this podcast on Apple Podcasts or Spotify and share this podcast with a friend.
Be a guest on the podcast or contact us - https://www.web3pod.xyz/