# Introduction

## Summary

**OpenTrade Stablecoin Staking Yield, powered by Figment** provides investors excellent risk adjusted returns generated from Solana (SOL) staking rewards and SOL perp future funding rates. The strategy is a delta-neutral strategy, meaning investors are protected from SOL price volatility.

* Yield is derived from a delta-neutral portfolio of staked SOL and offsetting future positions.
* Invest stablecoins, begin earning interest immediately and withdraw any amount, anytime.
* All accessible via the Figment platform and APIs, and powered by a Figment run Solana validator.
* Leveraging bankruptcy remote SPV, regulated asset managers, and Tier 1 financial counterparties.

The product is made available via both OpenTrade and Figment's APIs and web application, meaning OpenTrade and Figment customers can access a stablecoin yield product providing excellent risk adjusted returns through the same trusted infrastructure they depend on today for protocol staking.

### Benefits

* Earn excellent risk-adjusted returns on stablecoins
* No exposure to SOL price volatility.
* Easy to integrate and white-label the product; composable, automate-able, embeddable.

### Key Details

<table><thead><tr><th width="255">Vault</th><th width="475">Details</th></tr></thead><tbody><tr><td><strong>Vault Name</strong></td><td>Stablecoin Staking Yield Vault</td></tr><tr><td><strong>Token Symbol</strong></td><td>xSOLY</td></tr><tr><td><strong>Eligible Collateral</strong></td><td>USDC, SOL, Staked SOL (Figment Validator), SOL Perp Futures</td></tr><tr><td><strong>Stablecoins Accepted</strong></td><td>USDC</td></tr><tr><td><strong>Networks Supported</strong></td><td>Ethereum</td></tr><tr><td><a href="https://app.gitbook.com/s/nTaVGsXJa8WE3XS6DeCF/opentrade-stablecoin-staking-yield-powered-by-figment/how-it-works/investments"><strong>Investments</strong></a></td><td>Anytime, <a href="../stablecoin-yield/product-overview/vault-tokens">vault tokens</a> minted immediately</td></tr><tr><td><a href="https://app.gitbook.com/s/nTaVGsXJa8WE3XS6DeCF/opentrade-stablecoin-staking-yield-powered-by-figment/how-it-works/withdrawals"><strong>Withdrawals</strong></a></td><td>Anytime, repaid on business days once Solana is unstaked</td></tr><tr><td><strong>Minimum Investment</strong></td><td>1000 USDC</td></tr><tr><td><strong>Term / Lockup</strong></td><td>None</td></tr><tr><td><strong>Fees</strong></td><td>Advisor Fee = 60 bps per annum; OpenTrade's Platform Fee = 50 bps per annum. Fees are deducted from the gross yield generated on the underlying collateral.</td></tr><tr><td><strong>Interest Accrual</strong></td><td>Interest accrues daily.</td></tr><tr><td><strong>Indicative Interest Rate</strong></td><td>Based on the realised prior 30 day annualised return. <strong>Past results are not indicative of future returns.</strong></td></tr><tr><td><strong>Exchange Rate Setting</strong></td><td>Set by Investment Advisor each business day at 9.30am GMT based on the value of the underlying collateral at closing for the prior business day.</td></tr><tr><td><strong>Legal Structure</strong></td><td>Leverages the same institutional grade <a href="../stablecoin-yield/product-overview/legal">legal framework</a>, <a href="../stablecoin-yield/product-overview/legal/bankruptcy-remote-structure">bankruptcy remote structure</a>, and regulated service providers and counter-parties as our other OpenTrade Treasury Management &#x26; Yield Products.</td></tr></tbody></table>

## Yield Strategy Details

The strategy is a delta-neutral SOL carry trade designed to generate stable USD-based yield by staking SOL while fully hedging out price risk.

### Core Structure

* Buy SOL spot on an exchange.
* Stake SOL to earn rewards
* Use the same staked SOL as 1:1 collateral for an equal-size short SOL perpetual futures position on the same exchange.

This ensures that the collateral automatically offsets mark-to-market risk on the short position.

### Collateral & Staking Allocation

* Approx 100% of the SOL purchased is staked, any remaining is held in USDC in secure custody.
* The staked SOL is recognized by the exchange as eligible collateral for the short perp positions.
* 100% of staked SOL is used as collateral which maximizes yield.

### Yield Drivers

* Primary return driver is SOL staking rewards. SOL staking rewards are hedged as they are earned.
* Additional returns provided by funding rate on short SOL perp futures.
* Perp funding rates may slightly increase or decrease yield, but are expected to remain low single digits annualized.

### Risk Management

* The short perp fully hedges SOL price risk, making the position market neutral.
* Because collateral is in staked SOL, the exchange has “right-way risk”: if SOL rises and the short position loses, the collateral (staked SOL) gains USD value proportionally.
* This structure minimizes liquidation risk and maximizes staking efficiency.
* Execution is optimized by market-making/legging into the long + short simultaneously to avoid slippage and excess delta exposure.
* Only Tier 1 financial counterparties are utilised (Circle, Crypto.com, OKX).
* Investments are made through a bankruptcy remote SPV which is operated by FCA regulated asset manager and overseen by independent directors and trustee.
* Trading is conducted programatically by quant hedge fund with long track record operating the strategy successfully.