Key facts
- Solstice Finance has launched a structured product called strcUSX on the Solana blockchain.
- The product provides DeFi users with exposure to the dividend income and price risk of Strategy's STRC preferred stock.
- Exposure is divided into a senior tranche targeting a 7% annual yield and a junior tranche targeting over 20% APY.
- Junior token holders bear the initial losses if the price of STRC declines.
- Users deposit Solstice's USX token into a vault to access the product.
- Yield is generated through changes in the tokens' exchange rate.
Solstice Finance has introduced strcUSX, a new structured product on the Solana blockchain, designed to offer decentralized finance (DeFi) users exposure to the dividend income and price volatility of Strategy's STRC preferred stock. This product does not involve tokenizing the actual STRC shares. Instead, users deposit Solstice's USX token into a vault to gain access to two new Solana tokens: SR-strcUSX (senior) and JR-strcUSX (junior).
The senior token is designed to receive income first and targets an annual yield of 7%. The junior token receives the remaining income and targets an APY exceeding 20%. In exchange for the higher potential yield, junior token holders are the first to absorb losses if the market price of STRC falls. Yield accrues through changes in the tokens' exchange rate rather than through separate distributions.
Users have the option to redeem their investment after a seven-day unlock period or exit immediately by paying a fee. This offering marks the first STRC-linked instrument available on the Solana network. Strategy recently sold 1,690 bitcoin for $108.6 million to repurchase 1,152,020 shares of its variable-rate preferred stock, STRC, for the same amount.