Solv’s risk management team combines a traditional financial risk management framework with blockchain technology to monitor issuers’ performance. Before any Bond Vouchers are issued, Solv will conduct thorough due diligence into the issuer’s financial health and uses of the funds.
The proceeds of the Bond Voucher will be sent to a neutral, third-party protocol to manage the use of funds. At maturity, funds will be automatically withdrawn from the protocol to repay the investors.
Blockchain offers transparent and immutable transaction records, providing lenders with clear insights into the historical transactions of the issuer to identify the creditworthiness of the borrower and monitor loan capital uses.
Solv offers excellent optionality, such as flexibly collateralizing the Bond Voucher or issuing IOU statements on-chain, for borrowers who wish to enhance the credit profile of their issuances.