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Solstice is the pooled rail. It connects Bitcoin to traditional, off-chain finance: each Yield Provider has one BTC vault that issues its own receipt token (RT). You invest BTC and receive RT. You redeem RT for BTC at the vault’s current Claim Ratio, which rises as the deployed BTC earns.
Solstice is in development. See Status and security.

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How it differs from Dawn

Both keep the BTC on Bitcoin and both are built on the btc-locker primitives.

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The Claim Ratio

Claim Ratio=BTCyp+BTCbufferRTtotal−RTvault\text{Claim Ratio} = \frac{BTC_{yp} + BTC_{buffer}}{RT_{total} - RT_{vault}}
  • BTCyp is the provider’s position, valued according to the provider’s profile.
  • BTCbuffer is liquid BTC held for instant redemptions. The target is about 5% of the vault’s value, with a hard floor and a per-cycle cap. The provider refills it.
  • RT supply is fixed. The whole supply is created once and held by the vault. Issuance is the amount of RT that has left the vault. Nothing is minted or burned afterwards.

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Investing and redeeming

  • Invest. BTC in, RT out, priced at a signed, short-lived ratio quote. If the quote expires, you request a new one. A stale price is never settled.
  • Redeem. RT in, BTC out. An instant redemption is offered only when the buffer has the headroom to honour it. Otherwise the redemption joins a queue.
  • Queue. First in, first served, settled at the next buffer refill.
Each swap is a single Bitcoin transaction in which BTC and RT move together. You sign it, and the server co-signs and submits it.

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The receipt token

By default the receipt token is a Rune on Bitcoin. It is etched once with the entire supply held by the vault and no open minting. Investing and redeeming move RT with Runes transfers. A variant that issues the receipt as a native asset on Cardano, while the BTC stays on Bitcoin, is in draft.

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Connecting Bitcoin to off-chain finance

Solstice connects a pool of Bitcoin to a Yield Provider’s off-chain strategy. The provider is a traditional finance institution that deploys the vault’s BTC and reports its position, and that position is what moves the Claim Ratio. Every invest and redeem settles atomically on Bitcoin at a signed, current ratio, so you always trade at the vault’s up-to-date value.