The Solv Protocol, which integrates voucher-based instruments into the decentralized finance segment, has introduced a new type of voucher to help decentralized applications and decentralized autonomous organizations streamline their fundraising processes.
According to Solve Protocol’s official announcement, the company has added one more next-generation product to its portfolio. Solv Convertible Vouchers are designed to protect DAOs and their investors from the risk of liquidation.
Every Convertible Voucher leverages a token from a specific DAO with no risk of liquidation. On the Solv Protocol’s testnet, a Convertible Voucher for SOLV token is already available. It adheres to the ERC-3525 Ethereum-based token standard and functions similarly to non-fungible tokens.
Issuers can customize the maturity date, nominal token value, and bond range to ensure safe and profitable fundraising for any crypto or Web3 early-stage product.
When the voucher’s settlement date arrives, it’s treated as a bond, with holders receiving a payout from DAOs based on the voucher’s nominal value.
Ryan Chow, the co-founder of Solv, is confident that his new product has the potential to change the fundraising narrative for all emerging DAOs and DeFis:
“For project teams with relatively illiquid treasury, Convertible Vouchers is an optimal fundraising model with zero liquidation risk, low financing cost, and without having to sell 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.”