As Leveraged SOL
How does SolStrat offer leverage on SOL?
The SSTR token is naturally leveraged in practice. The premium of MSTR over NAV in Microstrategy naturally rises in bull markets as faith in the MSTR trade increases, and falls in bear markets.
The CNT token offers a straightforward mechanism to "loop" the SSTR trade by having users sell their CNT for additional USDC or SOL, increasing their leveraged bet.
How is this different than traditional leverage?
Traditional leveraged solutions in crypto come with significant drawbacks:
Perpetual futures and margin lending expose users to liquidation risk and high funding costs
Leveraged tokens suffer from volatility decay due to frequent rebalancing
Centralized leverage products lack transparency and can introduce counterparty risk
SolStrat offers:
Liquidation-Free Leverage: Gain amplified exposure to SOL price movements without forced liquidations
Reduced Volatility Decay: Minimal losses from frequent rebalancing commonly seen in leveraged tokens
On-Chain Transparency: All treasury assets and debt obligations are visible and verifiable on-chain
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