Solstice Finance, a DeFi yield infrastructure protocol in the Solana ecosystem, has launched strcUSX, a structured product tied to STRC, the preferred stock issued by Strategy (MSTR). The protocol said the launch marks the first financial product on Solana linked to STRC.
Solstice said strcUSX does not tokenize STRC shares and does not mean users hold Strategy preferred stock directly. Instead, the product uses a yield vault to separate STRC-related income from price risk. Users deposit USX, Solstice’s dollar-settled token, and receive two Solana-based tokens that represent different levels of risk exposure.
Two tranches carry different risk and return profiles
The senior tranche token, SR-strcUSX, has priority on income distributions and targets an annualized yield of about 7%. The junior tranche token, JR-strcUSX, takes the residual return and more of the price volatility risk, with a target annualized yield above 20%.
If the value of the STRC-linked assets declines, holders of the junior tranche absorb losses first. STRC is a floating-rate perpetual preferred stock issued by Strategy. Its current cash dividend yield is about 12%, with payments made twice a month, although dividend payments still depend on decisions by the company’s board.
Product design targets DeFi users with different risk appetites
Solstice said the product is meant to give DeFi users access to STRC-linked yield and risk exposure without directly holding STRC shares. The protocol added that the tranche structure is designed to serve investors with different risk preferences.
Earlier on Aug. 10, Strategy sold 1,690 BTC, raising about $108.6 million, and used the funds to repurchase about 1.152 million STRC preferred shares. Strategy’s bitcoin holdings have now fallen to 840,447 BTC.