Overview
SNP500 — Sock & Pussy 500 — is an actively managed on-chain index of Solana memecoins and tokenized stocks. It is a single SPL token whose backing is a basket of assets held in token accounts owned by an on-chain program. The basket is rebuilt from a published rule set every day: the 50 leading Solana-native memecoins and 450 tokenized stocks, filtered by a liquidity test and a token-standard test, weighted by market cap with a 20% cap and a 1% floor. At the time of writing 37 memecoins and 16 tokenized stocks pass every test, so the index holds 53 positions. One SNP500 is a pro rata claim on all of them.
The ETF framing
This is an exchange-traded fund design, implemented as a program instead of a trust company.
An ETF share is not a synthetic price feed and not a promise. It is a claim on a basket of assets held by the fund. The fund publishes exactly what it holds. Divide the value of those holdings by the number of shares outstanding and you get net asset value per share — what one share is actually worth, independent of what anyone is willing to pay for it on an exchange.
Shares come into existence and go out of existence through creation and redemption. An authorised participant hands the fund the underlying basket in kind and receives newly issued shares; or hands back shares and receives the underlying basket. No cash leg, no sale of holdings, no pricing decision by the fund.
That mechanism is what keeps the share near the value of what it holds. If the share trades above the basket, it is profitable to buy the basket, create shares and sell them. If it trades below, it is profitable to buy shares, redeem them and sell the basket. Both trades push the price back. The link between a share and its holdings is enforced by arbitrage, not by a market maker's goodwill.
SNP500 does the same thing with no gatekeeper. Creation and redemption are in kind and pro rata, and they are open to anyone who can send a transaction. To create, you deposit every constituent in the exact ratio the vault currently holds; the program mints against the smallest complete basket your deposit covers. To redeem, you burn index tokens and receive your share of every position. There is no application, no approval, no authorised-participant list.
One consequence is worth stating up front: no step in that process converts anything to dollars, so the program needs no price oracle. Net asset value is a number the site computes for display. The program itself never reads a price, so there is nothing in the system to manipulate, stale out or halt.
Secondary trading happens in a liquidity pool, where price is set by whoever is buying and selling at that moment. It can sit above or below net asset value. Arbitrage, open to anyone, is what closes the gap, and a keeper runs the same trade automatically when the gap is wider than the cost of closing it. The pool is small, so a large trade moves the price well away from net asset value before arbitrage catches up. Section 3 covers the mechanics, Section 7 shows you how to check the backing yourself.