Solv Protocol

Solv Protocol is a decentralized infrastructure for creating and trading financial NFTs. Solv has developed a powerful new token standard called Universal NFT (vNFT for short) to express financial NFTs.

Solv Voucher Marketplace is a decentralized protocol that allows you to create and conduct investment distribution transactions. Solv Voucher (SV) is a custom-designed vNFT through which the Solv Voucher Marketplace converts locked allocations into shared, composable Solv Vouchers (SVs).

Solv Protocol is the decentralized platform for creating, managing and trading Financial NFTs. As our first Financial NFT product, Vesting Vouchers are fractionalized NFTs representing lock-up vesting tokens, thus releasing their liquidity and enabling financial scenarios such as fundraising, community building, and token liquidity management for crypto projects.

Solv IC Market is a DeFi protocol based on an innovative vNFT bill skipping convention. Its purpose is to use vNFT to express the contractual relationship of investments in the primary market, reduce the cost of execution and the cost of trust when signing a contract between the team and investors, and facilitate the circulation of the project's locked share in the market. allow all people to access the early allocation of project resources.

In the primary market, investors often buy from the team not spot, but futures with a certain fixation period. That is, the deal between investors and the team is the right to withdraw tokens in the future. From this, two main questions arose.

First, the investor's locked-in stock lacks liquidity. When investing in the primary market, a large number of shares of Tokens in the hands of investors are blocked. Faced with an ever-changing market, they are unable to respond in a timely manner. Good opportunities are easy to miss. The bull market cannot be transferred and distributed. When it finally unlocks, they often attack Plate, resulting in a hopeless situation.

Secondly, it is very subject to friction between investors and investors, investors and all parties to the project in investment transactions. When investors try to transfer blocked positions, it is usually difficult to find a counterparty. Even if a counterparty is found, the transfer process will be difficult. Full of various risks, cumbersome procedures and high trust costs make it difficult to develop an over-the-counter stock trading market. At the same time, for investors, the release of locked positions in most projects is currently done centrally or even manually, which involves many risks of default and increases friction between investors and projects.

Third, in the event of a breach of contract, the cost of implementing the SAFT agreement is too high, often requiring the use of traditional legal means, and the cost is too high.

So while we have seen the DeFi protocol use extremely low costs to help people solve trust issues and facilitate financial transactions in various markets such as secondary market transactions, lending and insurance, the blockchain primary market is still stuck in "predicament".

Solv IC Market uses IC to represent the contractual relationship between investors and project parties. The transfer of IC represents the transfer of investment units. And IC can support split and merge, so that sharing transactions have full flexibility.

First, the projects add a token to the Solv protocol, agree on the form of the lock (linear unlock, phase unlock, single unlock), lock start time, lock end. time and generate NFTs with agreed terms. This is the process of creating an IC. After that, whoever owns this NFT will have the right to withdraw tokens from the Solv protocol in accordance with the agreement. The issuance of the token will be entirely based on the control and execution of smart contracts.

vNFT is a new token protocol created by the Solv team, specifically used to describe account tokens. IC is the first vNFT released.

Why do we need to invent a new token protocol? Is it possible to use existing ones?

It is obvious that IC needs stronger information description abilities to accurately express and fulfill blocking conditions, and ERC20 is clearly incompetent. However, ERC721 cannot support quantitative separation at the protocol level and cannot meet the needs of the IC. ERC1155 does not support the separation of heterogeneous assets at the protocol level. Although it can partially mimic this feature due to its ability to describe the number of tokens, shares after such a simulated split are homogenized by default. However, in the stock trading scenario, the most important possibility is that each stock can be differentiated due to the different withdrawal process. Therefore, we must abandon the ERC1155 standard.

Therefore, Solv needs to create a new asset agreement, which is vNFT. vNFT is compatible with ERC721, so it can be considered as an updated and improved version of ERC721. vNFT has very strong information description capabilities, expressing complex lock conditions and release patterns. It can also support free splitting and joining, resource sharing, and each shared resource can support further operations and state changes. (Currently, vNFT has not submitted an EIP proposal yet)

vNFT comes with both financial trappings and fun collectible trappings. In addition to describing the lock information of the token, each chip will also be associated with the banknote's exquisite design and its corresponding commemorative value. When the IC rights are fully exercised (the user withdrew all the tokens), is it possible that this exquisite bill that once represented investment rights has become someone's collection?

Solv itself is the first project to implement the Solv IC Market application. The official will enter a certain amount of $ SOLV into the protocol, generate IC and give it to seed investors to open free transactions in the primary market.

Solv IC Market will integrate OpenSea to create a marketplace based on IC creation, splitting, merging, displaying and trading. OpenSea supports various trading modes by default, including cap selling, batch selling, Dutch auctions, whitelist selling, etc.

Contractual investment rights, a rich and transparent trading experience, and freely tradable global trading markets will be the panorama of the primary market in the DeFi era. Solv IC Market aims to create a new primary market infrastructure.

Application examples of SOLV IC Market:

Example 1

Solv IC Market supports all projects for placing tokens on our platform, setting blocking conditions and issuing corresponding investment notes for thousands of investors. Compared to IDO, this model makes it easier to form a long-term connection of interests with users. Compared to Coinlist, this model supports free transactions between private equity users and frees up transaction activity.

Example 2

Directed to the discount market of bills. When spot and locked Token accounts hit the market, people can convert locked accounts into spot orders at a specific discount rate, which will open up an emerging market that remains empty in the DeFi world. In particular, the discount market will help generate discount rate curves with different maturities, and this important market information can lead to a series of new transactions such as interest rate swaps.

Example 3

Create a market for IC (Forward Contracts) where investors can directly sell IC for highly liquid assets such as USDC. The relationship between the price of forward contracts and spot may reflect medium and long-term market confidence, which is also indicative information for the market.