SolStrategy
  • What is SolStrategy?
  • Protocol Mechanics
    • Convertible Notes
    • Protocol Buybacks
    • Protocol Treasury
    • Comparison with MicroStrategy
  • Getting Started
    • Bonding
    • Swapping
    • Redeem SSTR
  • The Gamma Trade
  • As Leveraged SOL
  • $SSTR
  • $CNT
  • Contract Addresses
  • FAQ
  • Risks
  • Audit
  • Attribution
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  • The SOL Accumulation Mechanism
  • Convertible Note-Driven Acquisition
  • Treasury Usage
  1. Protocol Mechanics

Protocol Treasury

The SOL Accumulation Mechanism

A critical objective drives the protocol's design: the systematic accumulation of as much SOL as possible within its treasury. This report examines how SolStrategy's mechanics facilitate this accumulation strategy and its implications for the protocol ecosystem.

Convertible Note-Driven Acquisition

SolStrategy's SOL accumulation follows a deliberate process:

  1. Capital Raising: The protocol issues convertible notes (CNT + NFT Options)

  2. Market Execution: Stablecoin deposits are used to buy SOL directly on the market.

  3. Treasury Retention: Acquired SOL is held in the protocol's on-chain treasury

  4. Debt Resolution Through Conversion: Rather than selling SOL to repay debt, the protocol incentivizes conversion to SSTR when SOL appreciates

This structure creates a one-way valve for SOL - the protocol continuously acquires SOL but rarely needs to sell it, creating persistent accumulation over time.

Treasury Usage

Unlike MicroStrategy, SOL owned by the treasury is not simply blackholed. Rather it is reused through the protocol to generate yield and provide liquidity for the system. The ways that SOL is used by the protocol include:

  1. Pairing SOL with CNT and SSTR to provide liquidity and collect trading fees

  2. Depositing SOL to lending protocols to generate yield

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Last updated 29 days ago