$SSTR
What is SSTR?
SSTR is the core protocol token that represents leveraged exposure to Solana (SOL) without the traditional risks of liquidation or volatility decay. Crucially, every SSTR is backed by at least one real SOL held in the protocol's treasury, creating a secure foundation that underpins the token's value while enabling leverage through financial engineering.
The SSTR token derives its fundamental value from the protocol's on-chain treasury, which holds SOL acquired through convertible note issuances. This creates a transparent value floor - at minimum, each SSTR token represents a claim on one SOL in the treasury, with the potential for additional value.
Unlike traditional leveraged products that rely on derivatives or borrowing, SSTR's leverage comes from the protocol's debt structure rather than market positions, eliminating forced liquidation scenarios.
Achieving Leverage
SSTR achieves its leveraged exposure through a novel capital structure:
Debt-Based Acquisition: The protocol raises capital by issuing convertible notes (CNT + NFT Options)
SOL Accumulation: The raised capital is used to purchase SOL, which backs SSTR
Convertible Structure: If SOL appreciates sufficiently, note holders convert to SSTR.
Leverage Effect: This structure allows SSTR to capture upside without dilution when SOL performs well
Supply and Tokenomics
SSTR has a controlled supply with transparent minting and burning mechanisms:
Minting: New SSTR is only created when convertible note holders exercise their options, burning both CNT and their NFT Option
Supply Cap: The protocol ensures that the total value of all SSTR cannot exceed the treasury's SOL holdings, maintaining the 1:1 backing minimum
No Arbitrary Inflation: Unlike many DeFi tokens, SSTR has no emissions schedule or inflationary mechanics beyond option exercise
This controlled supply mechanism ensures that SSTR maintains its backing while allowing the market to price in the leverage premium based on expected future protocol growth.
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