Introduction
What is Solana Liquid Index?
What is Solana Liquid Index (SLI)
Solana Liquid Index (SLI) is a crypto-native, onchain index token deployed on the Solana blockchain.
It is built as a rules-based mechanism operating on a predefined basket of liquid staked SOL (LST) tokens. SLI runs entirely onchain and does not rely on custody, discretionary management, or parameter changes after deployment.
The index is implemented using the Bands protocol and follows a deterministic set of rules governing:
transaction fees,
asset purchases,
automated sell triggers,
and token supply reduction.
What SLI is designed to do
SLI provides a single token that interacts with a fixed set of Solana liquid staking assets through an automated process.
Each interaction with the SLI token applies a transaction fee. A portion of this fee is redirected toward the acquisition of the underlying assets. These assets are then monitored against predefined conditions.
When those conditions are met, the system automatically:
converts asset positions into liquidity,
uses the proceeds to buy back SLI tokens,
permanently removes those tokens from circulation.
This process is executed entirely onchain, without manual intervention.
What SLI is not
Important clarification
SLI does not track the value of its underlying assets.
SLI does not represent a claim on the basket of liquid staked SOL tokens.
SLI is not an ETF, a tracker, a fund, or a price-replicating product.
The price of SLI is determined by market supply and demand. Any relationship with the underlying assets is indirect and occurs exclusively through the protocol’s automated buyback and burn mechanism.
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