This page provides an overview of Solv V3 for Institutions.
Solv Finance is a liquidity program that allows blockchain institutions to build SFT-wrapped financial products for liquidity. It offers bespoke financing solutions, consulting, capital introductions, and underwriting to crypto institutions, especially asset managers, who want to access liquidity quickly and at minimal cost.
Clients onboarded to Solv Finance can use a dApp to create a variety of financing products and distribute the products through Solv or its own distribution channel.
The institution can use the pooled liquidity for various income-maximizing activities on-chain, provided that these activities are securely custodied and managed (usually through a neutral custody solution and multi-sig).
An investor who purchases the issued SFT becomes an LP and is able to redeem the SFT for income generated by the institution later.
The trust crises spawned by the recent event in crypto have laid bare the inherent problems of CeFi and DeFi that need to be solved:
- In CeFi, Bad actors knowingly misused the customer funds and the fallout completely eroded trust in centralized apps that are extremely useful in many ways.
- In DeFi, collateralization can effectively protect investors in the midst of market volatility, but it's bad for capital efficiency, which, in the long run, undermines DeFi’s mission to democratize universal access to liquidity.
Solv Finance allows crypto institutions, such as an asset manager or VC firm, to take money from investors through a customizable SFT issuance, use the money to maximize income, and pay back the money later in an all-in-one dApp.
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