What is Solv
This page provides an overview of Solv.
Solv is an infrastructure for creating, issuing, and trading Semi-Fungible Tokens (or SFTs) for a wide range of purposes.
- Solv runs on code. Solv is powered entirely by smart contracts. This means all meaningful operations on Solv--from asset creation, trading, clearing, and settling--are automated.
- Solv puts investors first with protocol-level integration of the best asset management solutions. Solv integrates the world's leading asset management and custody solutions (e.g. Ceffu, OKX Custody, and Cobo) in order to minimize counterparty risks and enable maximal transparency and trackability for user funds.
- Solv enables transparency with on-chain history blockchain institutions and asset managers can build out. On-chain entities seeking liquidity can build out their own on-chain performance history in order to be marketable to a broad community of investors.
Blockchain institutions can access on-chain liquidity through the Solv by creating and issuing SFTs representing financing products such as investment funds, debt/equity instruments, and other complex financial instruments and vehicles.
If you are a crypto institution seeking liquidity through Solv, explore Solv Finance for Institutions.
Crypto investors can invest the SFT-wrapped financial products with the aim to earn a yield over time. Much like investing in a DeFi yield product, investors can go on Solv's dApp, browse, and purchase an SFT which represents a right to redeem a yield later. For investors, an SFT functions like a share or bond certificate (which are usually represented by ERC-20 tokens on many protocols), depending on what type of financing product the issuer of an SFT has built.
If you are a DeFi investor who wishes to understand how earning yields on Solv works, explore Solv Finance for Investors.
Solv offers three key benefits to developers looking to build tools that allow institutions to create and issue financial instruments:
- 1.Diversity in asset functionality and business logic: This includes the option to allow or disallow SFT transferability and the ability to send or receive assets directly from the SFT.
- 2.More operations in SFT issuance: This includes, but is not limited to, the ability to enable eligible buyers (through an allowlist) and the ability to delist unsold portions of an SFT.
- 3.Support for multiparty operations: This includes the ability to allow underwriters to underwrite SFT assets for a premium.
Solv translates the complex life of a traditional financial instrument—from origination to settlement—into nifty processes of creating, managing, and settling SFTs all in one stop.
Solv enables blockchain institutions and developers to build out complex financial assets for various liquidity objectives:
Options and futures: An SFTized options or futures contract that stipulates the promise to deliver a number of tokens to the SFT holder. Allowing transferability for options and futures SFTs would enable a scalable allocation market.
Bonds: Credit capital SFTs issued by, for example, a market maker to receive liquidity, who will repay the liquidity plus interest back to the holders through the SFTs.
Funds: Professional money manager pools money from investors through an SFT sale and invests the money in different types of assets. When the fund matures, the manager repays the money and additional earnings back to the fund SFT’s shareholders.
Exotic Derivatives: Create SFTized complex derivatives and/or allow investors and business entities to trade SFTs in bet-on agreements.
RWA tokenization: Represent physical and traditional financial assets as SFTs on the blockchain. RWA (Real-World Assets) SFTs can be bought and sold just like securities.
- 1.The over-centralization problem of DeFi: Bad actors of DeFi knowingly misuse customer funds, eroding trust in centralized apps that would’ve otherwise been useful in many ways.
- 2.The cost of developing and deploying bespoke financial products on the blockchain is too high: No one in the blockchain economy has built low-cost, customizable financing apps that enable niche capital seekers to access crypto capital efficiently and transparently.
- 3.No hub-like platform to support network effects around using and investing in bespoke financial products. This causes liquidity across the crypto markets to be too fragmented.
To solve these problems, Solv thinks holistically about the procedure by which crypto capital seekers raise funds, custody assets, clear and settle payments, and about a solution for investors to grow their idle assets with radical transparency. If Solv succeeds, DeFi will be a big step toward mainstream adoption.
Solv provides an all-in-one platform for creating, custodying, managing, clearing, and settling on-chain financial instruments powered by ERC-3525 Semi-Fungible Tokens. With easy-to-use tool kits, blockchain institutions and developers can build a wide range of financial instruments and investment products at a minimal cost, such as bonds, investment funds, derivatives, futures and options contracts, tokenized real-world assets (RWAs), and so on.
An ERC-3525 Semi-Fungible Token (SFT) is a type of composable blockchain token developed by the Solv team that combines some of the best characteristics of ERC-20 fungible tokens and ERC-721 non-fungible tokens. These characteristics include ultra expressivity (of NFTs), liquidity (of ERC-20s), asset-container feature and token-to-token payment feature, and so on.
SFTs enable on-chain entities, investors, and blockchain developers to onboard, invest, or build any complex financial instruments or investment vehicles to the blockchain with ease and at a minimal cost.
ERC-3525 is the underlying token standard powering all digital assets originated and traded on Solv.
SFT Labs is the global resource and community hub and ERC-3525 digital assets and developers. To learn more about ERC-3525, explore this section.
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