Solv Protocol’s Convertible Vouchers Eliminates Crypto Startup Liquidation Risk

The crypto world continues to develop its blockchain to provide its users with the best user experience possible. This time, Solv Protocol stepped up in helping crypto projects raise their funds Convertible Vouchers. In particular, this network feature provides a funding solution to all crypto projects looking to raise their capital without the need to sell tokens directly that are exposed to liquidation risk.

In terms of technology, SOLV Convertible Voucher on Solv Marketplace testnet, DAOs and startups can create an ERC-3525 token. These digital assets contain locked token assets through the Convertible Voucher. Those assets adhere to the maturity date, nominal token value, and bond range. Solv co-founder Ryan Chow comments:

Our working experience with many DeFi projects has made us realize a lack of liquid assets and cost-effective financing solutions remains an unresolved issue for those teams. That’s why our team created Convertible Voucher as a new fundraising tool that leverages the projects’ native token.

He added that for project teams with relatively illiquid treasury, Convertible Vouchers is an optimal fundraising model with zero liquidation risk, low financing cost, and without selling the tokens. As a growing number of DAOs emerge in the market, we believe Convertible Vouchers will fulfill their fundraising needs and thus unlock a potentially trillion-dollar-size market in the DeFi space.”

Meanwhile, any project team can mint and issue Convertible Vouchers through the Solv financial NFT marketplace. Best of all, all vouchers can be split, merged, and traded before maturity.

On January 29,  the first project in the network —  Unslashed Finance- will launch its platform using Convertible Vouchers. It will issue Convertible Vouchers with the equivalent of $1 million as a nominal value. The Vouchers will be available through Solv’s financial NFT marketplace.

On the other hand, Solv continues to push the boundaries of how a crypto startup can raise funds in this modern era. Additionally, the Convertible Voucher is a new way to access funds without selling native tokens, borrowing funds without liquidation risk, and an opportunity for investors to obtain potentially bigger returns with the safety of a bond.