Trustless Fund infrastructure Powered by ERC-3525
The key to DeFi's mass adoption is creating more high-quality on-chain assets and establishing permissionless infrastructure for the composability and interoperability of these assets. Solv has pioneered the design of ERC-3525 and built an integrated platform for on-chain fund issuance, trading, and settlement based on it. This aims to leverage DeFi composability while comprehensively enhancing the on-chain financial asset expression capabilities, referencing the trillion-dollar traditional fund market to establish a decentralized fund infrastructure. After 2 years of iteration, Solv V3 already supports diversified asset categories, yield strategies, and fund structures, bringing fund managers with quality strategies and investors with diverse demands a new paradigm for asset management experiences.
Non-custodial, product diversity, brand-new user experiences and composability are the three major characteristics of the Solv V3 fund platform:
- Non-custodial*:*Solv V3 utilizes smart contracts to fully automate fund operations in a non-custodial way. All fund issuance, administration, and settlement is handled by smart contracts. Backend capital permissions are also automated via smart contracts. Fund NAVs and historical performance are transparently recorded on-chain using trusted oracles, achieving complete lifecycle transparency. This eliminates centralized black box risks.
- Product Diversity:Solv V3 supports diversified asset classes and return strategies, enabling investors to complete one-stop asset allocation on Solv V3 based on their risk preferences and capital plans. Thanks to the powerful asset representation capabilities of ERC-3525, Solv V3 allows fund managers to highly customize their own fund products. Similar to customizing NFTs, they can visualize and customize the subscription rules, fee structures, and return strategies governed by smart contracts for the funds. This enables Solv V3 to offer:
- Abundant Underlying Assets:
- DeFi: Richer management strategies built on DEXs, derivatives, liquidity staking, NFTFi, etc. provide diversified yield sources.
- CeFi: Quantitative funds, arbitrage strategy funds, and CeFi market making funds will be introduced.
- TradFi: More real-world assets are tokenized, matched with yield strategies, continuously bringing ample and steady yield sources to crypto.
- Abundant Yield Strategies:
- Active Management Funds: Aims to outperform benchmark indexes through active management and security selection.
- Yield Enhancement funds: Uses strategies like liquidity staking to amplify returns.
- Copy Trading: Allows investors to follow and automatically replicate the trading strategies.
- Structured Funds: Packaged products with defined risk-return.
- Abundant Fund Structures:
- Subordinated Fund: Solv supports fund managers in decomposing the returns or net assets of funds to form two types of fund shares with differentiated risk-return profiles: preferred funds and subordinated funds.
- First Loss Capital Protected Fund: First Loss Capital Protection Fund: The First Loss Capital serves as a buffer to protect other investors from initial losses in the investment portfolio. This downside protection offered by the fund manager can give investors more confidence to invest in the fund.
- Diversified trading currencies:Solv supports investing in a variety of cryptocurrencies, such as BTC, ETH, Stablecoins, and also Altcoins like BNB, ARB, FIL, etc.
- Pioneering User Experiences and ComposabilitySolv uses SFTs (Semi-Fungible Tokens) to provide a visualized DeFi user experience and composability.Each fund SFT is equivalent to a tokenized liquidity pool (Vault), providing users with a similar experience when investing in funds. Users can purchase and redeem fund SFTs at any time, and access real-time metadata and comprehensive data of fund SFTs on a fully visualized dashboard, reducing friction and costs associated with investing in and monitoring funds. Fund SFTs have strong composability and interoperability with the entire DeFi and NFT infrastructure because they are ERC721 compatible and self-split. SFT holders can freely trade across exchanges (along with Opensea and Blur, Solv intends to enable trading on Uniswap), and use SFTs as collateral for lending on multiple NFT lending platforms.