Choose Your Yield
Structured digital credit, powered by Bitcoin. Bringing you structured finance on-chain.
Ideal for: Treasurers, retirees, RIAs seeking stable yield above Treasuries
Ideal for: DeFi yield seekers, crypto funds, mean-reversion believers
Three steps. One capital pool.
Deposit
Users deposit USDC and choose their tranche. Senior for stability. Junior for amplified yield. Both share the same pool.
Leverage
The vault converts USDC to sUSDat and loops on Aave at up to 1.75x, amplifying the base yield from 10.1% to 13.6%.
Waterfall
Senior gets paid first at 8% fixed. Junior gets the amplified residual. Junior absorbs all losses first — the same mechanics as a $1T CLO market.
Leverage is not fixed — it's automatically derived from the STRC volatility slider above. Higher volatility → lower leverage. This is countercyclical by design: the vault reduces risk when markets are stressed and adds leverage when conditions are calm.
| STRC Volatility | Auto-Leverage |
|---|---|
| < 10% | 2.00x |
| 10–15% | 1.75x |
| 15%+ | 1.50x |
Drag the volatility slider to see leverage adjust. This directly affects pool yield, pool volatility, and health factor.
Health factor responds to volatility, not yield. The dynamic leverage mechanism keeps it relatively stable.
Without tranching, a solo leveraged sUSDat position at the same leverage would earn 13.6% yield with 25.7% volatility.
The junior tranche earns 2.0x more yield by using senior capital as a funding source — while senior investors get near-zero volatility they couldn't achieve alone.
Structured Credit Needs Better Collateral
The CLO market is $1.3 trillion. The mechanics are proven — waterfalls, subordination, tranching. What's broken is the collateral underneath and the infrastructure around it.
Bitcoin Is the Rock
Mortgage-backed securities rely on millions of individually assessed, locally illiquid, opaquely rated loans. Bitcoin is a single, perfectly scarce, globally liquid, 24/7 auditable asset. Strategy holds 550,000+ BTC backing every STRC share.
Traditional structured credit failed in 2008 because nobody could see what was inside the collateral pool. Thousands of loans, each with their own underwriting standards, borrower profiles, and local market conditions — all collapsed into a single rating that turned out to be fiction. Bitcoin eliminates this opacity. One asset. One price. Globally verifiable every second of every day.
| Traditional MBS | STRC |
|---|---|
| Thousands of loans | Single BTC treasury |
| Locally appraised | Globally priced 24/7 |
| Agency ratings | On-chain verification |
| 3–5% yield | 11.3% yield |
| Raw BTC | STRC |
|---|---|
| 0% yield | 11.3% yield |
| ~60% volatility | ~14.7% volatility |
| Pure appreciation | Dividend + par anchor |
| No coupon to structure | Structurable cash flow |
STRC Converts Volatility into Income
Bitcoin has no yield. STRC creates it — a preferred stock paying a variable dividend (currently ~11.3% annualized), backed by BTC and designed to trade near $100 par. The volatility doesn't disappear. It gets converted into a stable income stream. That's the raw material.
Strategy's capital structure acts as a signal processor: it takes Bitcoin's noisy, volatile price action and decomposes it into a smooth component (STRC's dividend) and a volatile component (MSTR equity). Over 145 trading days of observed data, STRC has passed through only 18–37% of Bitcoin's drawdowns and has mean-reverted to par after every dislocation. The dividend has grown from $0.80 to $0.938 per month over the observation period — not guaranteed to continue, but demonstrating the mechanism's design intent.
Saturn Makes It Composable
Saturn Protocol wraps STRC into sUSDat — a yield-bearing stablecoin on Arbitrum. Now that 11.3% coupon lives on-chain, where it can be supplied as collateral, leveraged, and structured. No brokerages, no settlement delays, no custody black boxes.
This is the transition from credit-as-instrument to credit-as-raw-material. STRC on Nasdaq is powerful but static — you can't deposit it on Aave, you can't build a waterfall around it, you can't programmatically rebalance it at 2am on a Sunday. sUSDat unlocks all of this. Saturn retains 10% of the dividend as an operational fee and passes 90% through to holders via an increasing exchange rate. The result is ~10.1% net yield, globally accessible, fully composable with every smart contract on Ethereum.
| TradFi CLO | TrancheFi |
|---|---|
| 200+ individual loans | Single sUSDat pool |
| Quarterly reports | Real-time on-chain |
| Opaque waterfall | Auditable smart contract |
| $1M minimum | No minimum |
| Senior Gets | Junior Gets |
|---|---|
| 8% stable yield | 26%+ amplified yield |
| Near-zero volatility | Concentrated volatility |
| 30% loss buffer | First-loss absorption |
| Impossible to replicate solo | 2× solo leverage yield |
Conservation of Volatility
Volatility cannot be created or destroyed — only redirected. The pool has a fixed amount of risk. The senior tranche exports it. The junior tranche absorbs it. One person's stability is another person's amplified return. The math is zero-sum. The product is not.
This is the same principle behind every CLO, CMO, and structured note ever created. When you split a cash flow stream into priority tranches, you're not manufacturing yield — you're redistributing risk to investors who value it differently. A retiree will pay a premium for near-zero volatility. A crypto fund will accept concentrated drawdowns for 26%+ yield. Both are better off than holding unstructured sUSDat alone. Both are served by the same capital pool. That is the value creation.
Structured credit on transparent collateral, auditable infrastructure, and quantifiable risk.
For the first time, the collateral is verifiable, the waterfall is on-chain, and every health factor is public. That's not an incremental improvement. That's a different category.