Liquidity Validation Network

The Solv technical architecture revolves around the Liquidity Validation Network (LVN), a pioneering framework designed to provide secure liquidity validation for digital assets, with a primary focus on Liquid Yield Tokens (LYT). The first LYT supported by LVN is SolvBTC, which has already achieved a TVL of 1 billion USD. LVN's application scenarios include:

  • Providing liquidity for yield sources

  • Supplying liquidity to DeFi protocols

  • Facilitating cross-chain liquidity

Core Components of Liquidity Validation Network

1. Solv Guard (Launched Q2 2024): Solv Guard is the foundational security module of LVN, ensuring the integrity and safety of all operations within the network. It employs state-of-the-art security protocols and has been audited by leading security firms.

2. Token Validation System (Launching Q3 2024): Responsible for the admission and exit of LYTs, this system leverages a quasi-PoS mechanism involving LYT holders, SOLV token holders, and security agencies as validators. Validators vote on the security and legitimacy of tokens based on predefined rules and take necessary actions.

3. Yield Validation System (Launching Q4 2024): This system oversees the validation of yield sources, ensuring they meet stringent security standards. Validators, comprising SOLV token holders, utilize a similar quasi-PoS mechanism to vote and enforce security measures.

4. UTXO 3525 (Launching in 2025): UTXO 3525 is a critical module designed to enhance the network's transaction model, providing increased scalability and security. Its integration will further solidify LVN's robustness.

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