Paves the Way for Wider Institutional Adoption: Solv’s Permissioned Funds Release

Solv Protocol Team
3 min readOct 30, 2023

Solv Funds (Solv V3) is a decentralized, non-custodial platform for active asset management, focused on constructing LP-centric funds to generate diverse yield opportunities. It unlocks amplified opportunities through alpha strategies designed and managed by seasoned professionals, and provides sophisticated risk control services tailored to each LP fund, ensuring safety at the capital and strategy levels.

To better serve institutional investors and further drive the mass adoption of DeFi, Solv has officially introduced Permissioned Funds in addition to the widely supported Permissionless Funds. Permissioned Funds will have stricter qualification requirements and Solv provides rich customization for institutional investors.

Interacting with a KYC/AML compliant infrastructure is critical for financial institutions seeking to enter DeFi. It also appeals to fund managers preferring full visibility into their investor base. For Permissioned Funds on Solv, both fund managers and investors must undergo a vetting process. Investors first need to request access and complete Solv’s onboarding procedures including KYC/AML checks per fund manager requirements. Permissioned Funds typically have higher minimum investment amounts.

The key differences between Permissioned and Permissionless Funds on Solv are outlined below:

Solv’s infrastructure is also specially designed to meet the diverse needs of institutional investors. Its platform provides:

1. Diversified Investment Choices

Solv supports diversified investment through various digital assets and customized product structures. For example, in Solv’s flagship GMX V2 Delta Neutral Funds, investors can choose to invest with BTC, ETH or USDC based on their needs. Solv also offers senior tranche funds designed to provide fixed yields with lower risk. This appeals particularly to institutions seeking greater certainty. Solv will supply at least 15% of junior capital to protect the senior tranche.

2. Risk Control Mechanism

Regardless of CeFi or DeFi strategies, the funds raised by Solv’s fund products will be transferred to a designated MPC solution through the Solv Funds smart contract, fully isolating the transfer rights, clearing rights, and operation rights of the funds. This eliminates the possibility of fund managers moving the funds without prior consent.

3. Clearing Mechanism

Solv deploys a sophisticated risk management engine that monitors strategy performance 24/7 in real-time. Multiple alert triggers are set at varying risk levels. Depending on market conditions, the process is done automatically or manually. All strategies will have a predefined forced liquidation level. Depending on market conditions, the process is done automatically or manually by the team.

By delivering institutional-grade infrastructure and tailored solutions, Solv aims to bring more traditional financial institutions onto DeFi. As DeFi space continues its rapid evolution, Solv is well-equipped to lead the expansion through ongoing service and product innovation. It envisions building an transparent, yet secure financial system that benefits experienced and new participants alike.

If you’re interested in learning more about permissioned funds or have any questions, please don’t hesitate to reach out to us at bd@solv.finance.

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.

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Solv Protocol Team

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