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Solstice Finance, a Solana-based decentralized finance (DeFi) protocol, has launched “strcUSX,” a structured product linked to the yield of Strategy’s STRC preferred stock. This marks the first STRC-linked product on Solana. Rather than directly tokenizing the stock, the product separates risk and return by allowing users to deposit USX in exchange for senior (targeting 7% annual yield) or junior (targeting 20% annual yield) tokens. Separately, Strategy sold 1,690 <a href="https://xpertsstudio.com/bitcoin-etfs-post-best-day-in-9-months-as-price-hits-82000/” title=”Bitcoin ETFs post best day in 9 months as price hits $82,000″>Bitcoin to repurchase STRC shares, reducing its Bitcoin holdings to 840,447 BTC.
Key Elements
Solstice Finance, a Solana-based decentralized finance (DeFi) protocol, has launched a product linked to the yield structure of Strategy’s (MSTR) preferred stock STRC. This is the first STRC-linked product to appear on Solana.
Zug, Switzerland-based Solstice unveiled the Solana-based structured product “strcUSX” on the 10th (local time). The product does not tokenize STRC shares themselves or provide users with ownership. Instead, it is designed so that when users deposit Solstice’s dollar-pegged settlement token USX, they receive one of two types of tokens linked to the dividend yield and price fluctuation risk of a portfolio containing STRC.
The product is divided into senior and junior tranches based on risk and return profiles. The relatively lower-risk “SR-strcUSX” receives priority in profit distribution and targets an annual yield of 7%. In contrast, “JR-strcUSX” takes residual profits after senior investors are paid, but bears losses first in the event of an STRC price decline, offering a target annual percentage yield (APY) of over 20%.
STRC is a variable-rate perpetual preferred stock issued by Strategy, currently paying a 12% annual cash dividend. However, the dividend rate is determined by Strategy’s board of directors, and actual dividend payments are also subject to board declaration. Even if STRC’s market price declines, dividends may continue to be paid, allowing the senior token to partially hedge against mark-to-market loss risk.
Solstice explained that users can redeem funds after a seven-day withdrawal waiting period, and immediate liquidation is also possible by paying a fee. Rather than being distributed separately, yields accumulate in a manner reflected in the token’s exchange value.
Separately, Strategy sold 1,690 Bitcoin last week for $108.6 million (approximately 150 billion won) and then repurchased 1,152,020 shares of STRC with the same amount. As a result, Strategy’s Bitcoin holdings decreased to 840,447 BTC.
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Source: finance.biggo.com