RECAP AMA EPID COMMUNITY X SOLV PROTOCOL
🕖AMA Timing : 24th January 12 PM UTC | 7 PM (GMT +7)
🏚Venue For AMA: @EPID_Community
💰Reward Pool : 100$
➡️Part 1: Project Introduction.
Q1. Could you briefly introduce yourselves as well as Solv?
I'm Ryan, co-founder of Solv Protocol and head of Solv’s marketing and research teams.
Solv Protocol is a decentralized platform for creating, managing, and the on-chain transaction of NFTs that broadly represent financial ownerships and rights.
We call such NFTs, Vouchers. As NFT containers for digital assets, the Voucher can significantly enhance liquidity for locked assets and has proved extremely useful in numerous use cases across DeFi. Our token standard, ERC-3525, allows individuals to split or merge Voucher containers in whatever way they see fit.
We recently closed our Series A round led by Blockchain Capital, Sfermion, and Gumi Cryptos, with DeFi Alliance, The Lao, CMT Digital, CMSholdings, Apollo co-investing. We have so far partnered with 25 DeFi projects, all of whom have minted their Vesting Vouchers here at Solv. And to this day, over 7000 addresses have interacted with Solv, and the TVL has reached an all-time high of $260M on January 10, 2022.
These numbers signal the tremendous market potential that comes with utilizing NFTs which express and execute sophisticated financial contracts or financial NFTs. Soon, trillions of dollars of assets will pour into the DeFi space, where customers and institutions can enjoy the leading on-chain, permissionless marketplace for the financial NFTs in DeFi, provided by Solv Protocol.
Q2. What problem is Voucher trying to resolve? What is a Voucher?
The most pressing problem in the emerging field of DeFi right now is the absence of an efficient and flexible tool to express complicated financial contracts.
Vesting Voucher is a splittable NFT structure that represents ownership of locked allocations. For projects and investors, it’s a low-cost and frictionless solution for trading and managing allocations. Solv’s Voucher is a splittable NFT that represents ownership of allocations. An initial Voucher offering (IVO) is a public offering in which allocations of a project’s native tokens are sold in the form of Vouchers, to individual investors. IVOs are an excellent way for projects to reward early users and to form strong project-user relationships.
As NFTs, Vouchers are highly extensible by design to meet a wide array of use cases. Solv’s upcoming product Convertible Voucher is a is a structured financial product that can be converted into a predetermined number of tokens or stablecoins under certain conditions. It would empower DAOs that have listed their tokens to obtain cash in the most efficient way, while it allows voucher investors to receive healthy returns on a token in a relatively unstable climate.
Q3. IVO is a new fundraising model. What's so special about it when compared to IDO and Coinlist?
Vesting Vouchers might seem like a simple concept for token lockup, but as a tool in practice, it’s effective and neat. It plays as a crucial medium through which a crypto project can connect with the users in any real way.
As we all know, these days investors can invest in a project’s token mainly through IDOs. But the downside of IDOs is that they neither bring long-term users base to the project nor are they rewarding users of the project for investing. As an alternative, the IVO offers a rare opportunity for early, retail investors to purchase tokens at a low price point, something they are usually not able to do.
That being said, IVOs and CoinList do share a lot of similarities. For me, it helps think of the IVO as more of a “decentralized” Coinlist, but with additional benefits as follows:
1. More inclusiveness. Anyone can purchase inexpensive, early allocations through the IVO as long as they’re Whitelist.
2. More feasibility. Vouchers are accepted on every exchange, lending, or derivatives platform that supports NFTs, and you can freely send or receive Vouchers as long as you have a crypto wallet.
3. Enhanced security. Vouchers are secured by decentralized infrastructure.
On Dec 13, 2021, we launched our IVO event. Within the first hour, trade volume soars to nearly $2M BUSDs, with the highest floor price being $1500 BUSD - up from the opening $400. The next two days after the launch saw SOLV Voucher rising to the 2nd place in the 7D Hot Series list and first in the 7D Premium Creators List on the Binance NFT platform. Safe to say our IVO was quite a hit.
Q4. Could you introduce more about Convertible Vouchers?
As the second member of Solv’s financial NFT family, Convertible Voucher is a structured product that can be converted into a predetermined number of tokens or stablecoins under certain conditions.
From a technical point of view, the Convertible Voucher is an NFT container for locked token assets, and it revolves around three core parameters: a maturity date, face value, and a predetermined price range, which is called the “bond range.” If the token price falls into the bond range, the Convertible Voucher will execute like a zero-coupon bond, offering full nominal value payout to the investor in stablecoin. On the other hand, if the token falls out of the bond range, the Voucher owner can redeem the tokens whose amount equals the Voucher’s nominal value divided by either limit of the bond range, depending on what the token price is.
For risk-averse investors, the Convertible Voucher is the best way to invest in tokens that have unique risk profiles. It also gives owners of the Convertible Voucher an out before the settlement, by letting them trade those Vouchers on Solv Marketplace.
Q5. Convertible Voucher sounds like a great tool for diversifying treasuries. How is the payout calculated?
Take this Voucher for example.
It has a face value of $1,000, Bond Range from $0.5 to $1.5 and a maturity date that arrives in 294 days. In 294 days, the payment will be based on USF’s last 7-day moving average (USF/USD) up to the maturity date.
When the settlement price falls inside the bond range( $0.5 to $1.5), the amount paid to the Voucher holder would just be the Voucher’s face value. As figure shows, #30’s value (the blue curve) keeps a steady $1,000 as the settlement price traverses across the $0.50-$1.50 bond range. Assuming the Voucher was purchased at a discount for $800, in 294 days the holder will be offered a full face value profit of $1,000, generating a ROI of 25%.
If the settlement price ends up anywhere over $1.50 (upper bound), the holder receives a fixed payout 666.67 SOLV, generating a ROI of at least 25%. If the settlement price drops below $0.50 (lower bound), the holder receives a fixed payout of 2000 SOLV and a negative ROI.
Q6. How does it attract retail investors and why should they buy it?
Convertible Voucher is a new digital asset that allows crypto investors to receive healthy returns on a token.
Buying the project token provides immediate upside and downside exposure, whereas buying the Convertible Voucher pays a yield and only provides upside and downside exposure to the project token on significant moves.
Ryan Chow SOLV PROTOCOL, [24/01/2022 7:13 PM]
If that still confuses you, don’t worry–let’s clear it up with some numbers!
Suppose the current price of the token is $0.80 and the total cost of investment is $800, compare two investing strategies:
Strategy A: Buy 1000 SOLV tokens: 1000 SOLV $0.80/SOLV = $800
Strategy B: Buy Convertible Voucher #30 worth $1,000 (face value), with 20% off: $1000 1-20% = $800
Suppose the settlement price drops from $0.80 to $0.20 (lower than the range), strategy A will produce a $200 payout, equivalent to a net profit of $600, or a -75% ROI. The same price would, in strategy B, generate a $400 payout, bringing up the ROI to -50%. (See figure 3.2) When the settlement price is $2.00 ($0.50 over the range), strategy A will pay $2,000 or a 150% ROI, whereas strategy B produces a 67% ROI, a lower return.
This means that from a return/loss viewpoint, buying the Convertible Voucher weakens the gain in the upward price movement but, in exchange, provides a resistance against a downward movement (see figure 3.1). Though strategy A and B (outside the range) both mean taking a position with SOLV, a long period of holding SOLV without a protection mechanism in place exposes the investor to substantial loss.
Q7. Who will be the first to issue Convertible Vouchers and how to participate in this event?
Any project teams who have a treasury (especially DAOs) with very limited liquid assets would be interested to issue their Convertible Vouchers. Unslashed Finance, a decentralized insurance protocol, will be the first project to launch their Convertible Vouchers on Solv’s financial NFT marketplace. On January 29, Unslashed Finance will issue Convertible Vouchers with tokens worth 1 million US dollars.
Unslashed Convertible Voucher Offering Event details:
Users have to get whitelisted to participate in. Solv co-host a gleam whitelist campaign with Unslashed, you could join Solv’s Telegram or Discord to learn more details.
Unslashed($USF) Convertible Voucher Offering Whitelist Campaign on Gleam
👩🏻 Total Winners: 800
👑 Each Winner can purchase: $ 1w - 100w
⏰ Whitelisting Start date: Jan 21st, 2022
⏰ Whitelisting End Date: Jan 28th, 2022
Complete more referrals and tasks to have a better chance of securing a whitelist spot
Any cheating or use of bots will be disqualified immediately
Please note securing a spot on the whitelist means you can participate in the Convertible Voucher Offering but it does not guarantee an allocation - IVO will be first come, first served.
Follow Solv Protocol
Official Website: https://solv.finance
➡️Part 2: Question From Twitter (5 best questions).
As vNFT are upgrade with a ERC-721 extension to fit their financial purpose. What kind of additional characteristics does this change generate when we compare it with the NFT standard? Can't ordinary NFTs be/function as financial without the extension?
Actually, ERC3525 is fully compatible with ERC721, we are working on those lending protocols now and will probably not develop this function on our own. In the lending scenario, we provide liquidity to holders with vested tokens which is impossible in the past. This liquidity will help them perfectly solve the shortage of funds under some circumstances.
Indeed NFTs are not suitable for financial instruments as they need to be traded frequently, and they need to be allowed to trade in pieces like ERC20 could do this. Thus we create our new token standard to solve this problem.
As I mentioned above, we use ERC3525 to solve this problem by making NFTs splittable. Thus the trading frictions are significantly reduced which makes it much easier to trade financial NFTs. Besides, Solv built a marketplace specialized for financial NFT trading. Therefore, it provides investors with great liquidity.
Q2. Linh Hong
Based on my research, I learned that you say IVO (Initial Voucher Offering) is an ideal fundraising method for projects of any developmental stage, nonetheless, why does IVO not necessarily take place before IDO? Moreover, How did you manage to create a pre-IDO financing round?
An IVO is an Initial Voucher Offering. All users participating in our IVO will enjoy the same rights as private equity investors and will be able to participate directly in Solv’s primary market investment. In this IVO, Solv will publicly sell SOLV Vesting Vouchers, a type of NFT that represents locked-up $SOLV tokens. Solv directly distributes Vouchers to users as an on-chain certificate for locked Tokens.
Vouchers tokenize locked up tokens, which in turn releases asset liquidity. Before the unlocking period, users can transfer Vouchers to meet their funding needs. Solv has established a marketplace specifically for financial NFTs on its platform. Holders can receive a certain number of SOLV tokens on the Solv platform during the unlocking period.
IVO is a completely new type of issuance. What is the distinction between IVO and the previous token initial public offering? Our members want to know if $SOLV's IVO is worthwhile to participate in. Could you please explain the rules of IVO to us and how we can participate?
There are many campaigns, participate in the early stage to get the incentives.
Follow Solv Protocol
Official Website: https://solv.finance
Does Solv have any relation to Dodo Vesting vouchers? What are the alternative ways to get a Solv voucher? Is it possible to transfer it from one user to another? And can please explain the difference of Convertible Voucher to Vesting Voucher?
We worked with DODO to launch Vesting Voucher before and you can buy vouchers on Solv's marketplace. All vouchers are transferrable right now and we are going to have untranferrable function soon.
Convertible Voucher and Vesting Voucher are both based on our token standard 3525
Convertible Vouchers are more resistant to downside risk than Vesting Vouchers and will make your investments safer.
Especially in the current market conditions, choosing Convertible Vouchers is a safer and more secure investment.
Since Solv products are based on the EIP-3525 Token standard, which is original NFT Standard built for Financial NFTs, Would you mind tell us first what is EIP-3525? And how can we distinguish ERC-20 and ERC-721 to EIP-3525? What will be the benefits of EIP-3525?
Solv Protocol is the front runner for financial NFT marketplaces. We designed and created a new ERC token standard known as a versatile non-fungible token (ERC3525) that is flexible like the ERC-20, but also non-fungible like the ERC-721, making it a semi-fungible asset. The first ERC3525 token product was created in the form of a Solv Voucher, designed to be used in the form of allocations to grant broader access to private sales while generating much-needed liquidity for projects or investors.
➡️Part 3: Free asking (5 best questions)
Do You Have AUDIT Certificates Or Are You Working To AUDIT Your Project.? To Make It More Secure And Reliable???
Solv Protocol is designed to protect users’ assets. We work closely with top-notch blockchain security solutions to protect our users’ assets from external and internal risk factors. We are proud to say that our source code has successfully passed the audits by both SlowMist and CertiK, key blockchain security organizations, and is on schedule to be audited by a third security network.
In the pursuit of higher protocol security, Solv has purchased $1million worth of insurance coverage through Tidal Finance and $3 million of insurance coverage through Unslashed. This allows the Solv users to get insured over SC risk. The current plan covers smart contract vulnerabilities deployed on Ethereum and Binance Smart Chain. Needless to say, this is quite momentous as this is the FIRST time Defi insurance is being applied to the NFT sector!
What are your security measures adopted from hacking and bugs in smart contract ? Have you conducted any audit to make your smart contract safe?
Besides, we are offering a $50,000 bug bounty to incentivize developers and white hats to help us secure our protocol by uncovering its vulnerabilities and shortcomings. And we are pleased to be able to launch this undertaking with Immunefi, which is a leading bug bounty platform experienced in the testing and securing of Defi protocols.
Can you share Your opinion about Defi & NFT ? What makes your NFTs rate and special?
We believe that Solv is opening up a totally new path in the DeFi industry which will definitely be a new direction for others.
Solv is a marketplace that focuses on NFT financialization, which will unlock a multi-trillion-dollar financial NFT market—larger than all other NFT markets combined.
Solv’s original token standard introduces NFT use cases to DeFi for the first time and takes the protocol beyond the existing bounds of the DeFi space.
And Solv has built a platform that offers a high-liquidity, low-cost and customizable solution for minting, trading, and transferring financial NFTs.
Now I think we are on the hilltop already and we actually did so much in advance and achieved a lot but we must keep innovating and that is what we are doing now.
Partnership is always an important factor for every project. So who is your partner? What are the benefits you get from thosew relationships?
We connect high-quality investment firms in the crypto world, wealth advisory platforms, and investors. You can see the Current TVL, Partners, and Activities of our program on the Overview page of our website. https://solv.finance/overview
As of now, we have over 6,000 Voucher holders, 30 partner projects, and our Current TVL has exceeded $200 million.
First, Solv will have more strong investors on board in the near future. Second Solv will try to cooperate with the best platform to launch our own IDO. Third, we have built solid relationships with dozens of project teams just like unslashed and will bring our communities more great opportunities to invest in in the coming months.