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.

AccessTimeIconFeb 9, 2022 at 5:00 p.m. UTC
Updated Feb 9, 2022 at 5:41 p.m. UTC

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC