Index Product Provider Amun Makes Play for Solana With SOLI Token Launch
The SOLI index token delivers low-cost, diversified exposure to Solana ecosystem projects while also capturing a 6% staking yield.
Feb 9, 2022 at 5:00 p.m. UTCUpdated May 11, 2023 at 5:28 p.m. UTC
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Amun, a provider of crypto index products, launched the solana ecosystem index token (SOLI), a single token that tracks Solana ecosystem projects and provides exposure to five highly liquid, Solana-centric assets.
- “We built SOLI to provide investors with a simple and powerful way to get exposure to the rapidly growing Solana ecosystem,” the head of tokens, James Wang, said in an email to CoinDesk.
- Launching on Raydium – a leading Solana-based automated market maker (AMM) – SOLI will provide investors broad exposure to the native applications built on Solana including Raydium and Serum, supplying 32.45% and 28.97% weightage, respectively.
- Solana’s native token SOL will account for 33% of SOLI. However, rather than using SOL, the SOLI token will use Marinade Finance’s liquid staking mSOL token. mSOL is a staked version of SOL, which offers 6% annual percentage yield (APY) in the form of Solana staking rewards, meaning SOLI would offer profits from both yield and asset growth.
- The remaining allocation comprises of Solend, an algorithmic, decentralized protocol for lending and borrowing (2.15%); and Tulip Protocol, a yield aggregation platform (3.43%).
- Amun said in a prepared statement that the SOLI composition was made based on average market capitalization and decentralized exchange (DEX) liquidity.
- SOLI will be rebalanced monthly to lock in gains and ensure constituent tokens are allocated accordingly by market capitalization rank and liquidity. The index management fee is 1.5% annually, which will be waived for all token holders until the end of 2022.
- SOLI can be minted, burned and redeemed for an underlying basket of tokens in one click on the Amun Platform, according to the company.
- Solana is intended to offer a faster, more expandable alternative to Ethereum and other layer 1 blockchains. The past two years saw rapid growth on the Solana network, with over 500 decentralized applications deployed on Solana, and prices of SOL rocketing from under $2 to a peak of nearly $260 in October.
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Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.