FinanceSolana Introduces First Strategy STRC Product via Solstice Finance
Solana's latest vault separates income from Strategy's preferred stock into a safer senior token and a riskier junior token.
By Olivier Acuna|Edited by Jamie Crawley35 min ago2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on
Solstice has launched a token vault that differentiates dividend income from market volatility associated with Strategy’s preferred shares. (CoinDesk).Solstice Finance has launched strcUSX on the Solana blockchain, a structured financial product that enables DeFi users to gain exposure to the dividend income and price volatility of Strategy’s (MSTR) preferred stock (STRC) without needing to tokenize the shares.
- The offering divides exposure into a senior token aimed at achieving a 7% annual yield and a junior token with a target of over 20% APY, with junior holders taking the first hit if STRC’s price decreases.
- Participants can deposit Solstice’s USX token into the vault, redeem it after a seven-day unlocking period, or exit immediately for a fee, with yield derived from fluctuations in the tokens' exchange rate rather than through separate distributions.
According to Solstice, the new product represents the first STRC-linked offering on the Solana network.
STRC, also known as Stretch, is a variable-rate perpetual preferred stock issued by Strategy, providing a 12% annual cash dividend distributed bi-monthly, although the rate is subject to determination by Strategy’s board.
Even if the market price of STRC declines, dividends may still be paid. The senior token is designed to protect holders from some of that mark-to-market risk, while the junior token assumes more risk in exchange for potentially higher returns.
Users can redeem their deposits after a seven-day period or choose to exit right away for a fee. Yield accrual occurs through the token's exchange rate changes rather than through direct distributions.