Introducing Solv’s 360° risk control: Safeguarding Crypto Assets for All

Solv Protocol Team
4 min readOct 26, 2023

Crypto’s exploding asset types and volumes put asset security front and center. Solv, a decentralized, non-custodial platform for active asset management with over $200M assets under management, just scored a super hot 30% APY for its flagship Blockin GMX Pool . As a pioneer in this space, beyond delivering superior asset management strategies, security remains Solv’s top priority. Solv’s security strategy consists of three aspects: the smart contract vaults with multi-party control, a risk monitoring and warning system, and a comprehensive code auditing process by co-operation with DeFi community.

Multi-Party Controlled Vault

The multi-party controlled vaults aim to prevent fund managers, Solv platforms, PBs etc. from misappropriating funds while ensuring efficient fund operations. This system adds a safeguard smart contract layer to Cobo Argus, acting as a robust protector of user assets to guarantee fund safety.

Multi-Party Controlled Vault

Currently, institutional crypto investors with high asset security standards often opt for multi-sig wallets, dispersing asset control rights among 2+ members. Transactions only go through when a predefined minimum number of signatures are approved, solving single point of failure risks and enhancing validity. However, this compromises operational flexibility. But this cramps flexibility.

Cobo Argus brings flexibility back. Based on Safe’s modularity, Cobo Argus assigns roles with tiered permissions, enabling each member to operate within their scope and authority.

Although multi-signature wallets solve the problem of single point of failure, they are unable to prevent collusion between all members. To better safeguard funds, Solv has added a safeguard on top of the multi-sig wallet by defining allowed transaction types in the smart contract code. Any transactions involving misappropriation of funds are excluded. This means that even if all members sign to authorize a funds transfer, the transaction will not go through if it violates the predefined rules. By writing trust directly into the code, users need not rely on trusting any single party such as the fund manager, Solv or PBs.

Risk Monitoring and Warning

Solv introduced a comprehensive risk monitoring and warning system. The goal is to analyze relevant data, detect any issues early, send alerts, and take measures to minimize trading losses.

Solv’s risk monitoring and warning system can:

  • Monitor strategy performance 24/7:
  1. Real-time tracking of the fund’s Net Asset Value to detect abnormal changes
  2. Ongoing margin monitoring on CEX hedges, guaranteeing ample buffer room to liquidation
  3. Precision delta hedging surveillance, ensuring the fund manager sufficiently minimizes exposure
  • Support multiple alert methods including email, Slack, Telegram, WeChat, SMS, and phone calls. Customizable alert parameters and severity levels ensure timely notifications to relevant personnel through multiple channels.
  • Safely enable automated unwinding bots under preset conditions. Bots can concurrently liquidate positions across protocols proportionally, reducing exposure and drawdowns during unwinding. API controls and contract permission settings restrict bot capabilities to protect fund account security.

Code Audits

Solv v3’s smart contracts have undergone rigorous security audits by leading blockchain security firms Salusto to ensure the highest standards.

The audits analyzed all aspects of Solv’s contracts including architecture, access controls, token interactions, vulnerabilities and more. We have published the full reports openly on GitHub for transparency.

Battle-tested Security

Solv aims for comprehensive risk control. The systems described above have been battle-tested in real-world conditions. For example, the largest pool running on our platform. The largest pool — the GMX V2 fund — has over $20M+ AUM and 30% APY. This success demonstrates the effectiveness of Solv’s secure and profitable strategies.

Since 2021, Solv has navigated bulls and bears to emerge battle-tested. Institutions like Time Research and BingX use the platform. While narratives shift between LSDs, RWAs etc, Solv prepares infrastructure for all seasons, safeguarding user assets come what may.

About Solv V3

Officially launched in 2023, Solv V3 has pioneered the construction of a trustless fund infrastructure based on ERC-3525. It also achieved decentralized collaboration between trusted institutions to offer transparent, non-custodial DeFi risk control. It allows global investors to access varied, trusted crypto investments on one transparent and secure platform, and empowers excellent fund managers to efficiently raise capital and build on-chain credibility.

Join our community

Join our community to follow up on upcoming updates for documentation, dapp, and tutorials.

TwitterDiscordLinkedInTelegram (EN)|Telegram (CN)|RedditNewsletter

--

--

Solv Protocol Team

Decentralized Asset Management. Diverse Assets. Savvy Strategies. Optimal Risk Management.