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Types of Bonds

At Solv, a borrower can issue two types of bonds: Bond Voucher and Convertible Bond. They each serve a distinct role in the financing of a given entity. Such an entity could be a crypto market maker, VC, asset management protocol, or DAO.
While both the Bond Voucher and the Convertible Bond enable flexible credit enhancement optionality, the biggest difference between the two is that the Convertible Bond provides embedded convertibility which allows lenders to convert their fixed-income assets into the borrower's native token in order to enjoy the upside. This would mean an issuer of a Convertible Bond is required to back the issuance with sufficient amounts of assets (native token or other assets) to ensure the convertibility can be implemented if needed.
Borrowers that wish to issue pure debt instead (that is, a Convertible Bond with removed convertibility) may issue a Bond Voucher.