The asymmetry
The senior side wants regulated rails and a low rate. The junior side wants a high
rate and is willing to underwrite an originator to get it. These are not the same
people and they are not in the same place.
What this does not change
The position in the waterfall is set by the pool on Arc, not by the chain a note was sold on. A junior tranche funded from Solana is the same second-loss position with the same attachment point as one funded anywhere else. Distribution is about reaching the buyer, not about changing the instrument.Current state
Solana distribution is the last milestone, not the first. Today three tranches run
on Solana devnet as a mechanics test. Funding a junior tranche from Solana and
settling it to an Arc pool in a single transfer is
M5.