Solvent is a platform that is bringing decentralized finance to NFTs using Solana as its infrastructure. - It allows users to get instant liquidity on their NFTs via converting them into fungible tokens known as droplets. - Droplets are tradeable on Serum orderbooks like any other fungible tokens. - Droplets can also be integrated with all the existing and emerging DeFi protocols and applications, to eventually enable use-cases such as lending, collateralized loans, perpetual swaps, and more, on top of NFT assets.
Solvent is a platform to convert NFTs to fungible tokens known as droplets, giving the user instant liquidity. The instant liquidity for NFTs can provide users a platform to trade NFTs faster than they can today. Droplets can be traded on AMMs and Serum orderbooks on Solana. Users can trade the droplets owned by them to redeem NFTs in the Solvent buckets or swap droplets for $USDC directly from the platform. They can also stake their liquidity of the droplets into liquidity pools and earn liquidity rewards. Features like lending, loans, NFT derivatives, and more exciting integrations are to be released soon.
Problem Solvent solves
Liquidity is essential for enabling smoother transactions on any tradable asset. NFTs are highly illiquid today. One of the most common ways of trading NFTs today is via a sale-based or auction-based mechanism where the sellers list their NFT assets on the marketplaces. In the sale-based mechanism, the sellers list their items at a fixed price, and buyers can pay that amount to receive the NFT asset to make a trade possible. In the auction-based mechanism, the sellers list their items for an auction and receive bids from the interested buyers, with the NFT asset going to the highest bidder. In both cases, the amount of capital that has to come into play just for executing one single NFT trade is high, and therefore the capital efficiency in both cases is low.
How it works
The advantages for the user to choose Solvent for liquidity are:
Instant price discovery - If the users choose to list their NFT on marketplaces, they will have to come up with a price for which they can list the asset, whereas Solvent can provide an instant quote on the price they’ll receive in exchange for depositing their NFT.
Instant liquidity - Solvent can provide instant liquidity to the NFT depositors once they deposit their NFTs whereas, in the case of other marketplaces, the seller has to wait for the buyer to actually pay the amount and buy it from them, for the seller to receive the liquidity.
The smart contract of the platform is developed on the Solana blockchain and written in Rust programming language, The smart contract is audited for security and code analysis by Certik and the audit report is available here: https://www.certik.com/projects/solvent-protocol
We verify the ownership and integrity of the NFT assets and projects by making checks on the NFT token metadata. Our platform requires the NFT projects to have metadata as defined by the Metaplex standard.
Integrating with oracle for NFT floor price index feeds
Since each droplet represents a hundredth of an NFT asset in any NFT project, we can compute the floor price of an NFT project on Solvent in terms of USDC at any given time by multiplying the real-time price of the droplet for that project. Real-time feeds and quotes for the changes in the price of these droplets can be created by integrating with oracles on-chain.
Developers and other web3 protocols can leverage the real-time feeds from the oracle for building protocols and applications that utilize a stable AMM-based floor price feed on top of Solvent.
Releasing the Solvent SDK
Integration with Ethereum NFT projects
Our plan includes onboarding Ethereum NFTs to Solana programmatically via cross-chain bridges and enabling the features of the Solvent platform to them as well.
Integration with perpetual swaps protocol on Solana
The pricing feed of the droplets via the oracles can be leveraged to trade floor perpetual swaps of the floor price of the NFT projects. Ref: Floor perpetuals as proposed by Dave White from Paradigm Research.## Features
Solvent is a platform that is bringing decentralized finance to NFTs using Solana as its infrastructure.
It allows users to get instant liquidity on their NFTs via converting them into fungible tokens known as droplets.
Droplets are tradeable on Serum orderbooks like any other fungible tokens.
Droplets can also be integrated with all the existing and emerging DeFi protocols and applications, to eventually enable use-cases such as lending, collateralized loans, perpetual swaps, and more, on top of NFT assets.