Solv Protocol Newsletter#17 2022 Annual Recap

In 2023, Solv Protocol continues to be committed to further innovations to enable anyone to create and trade the next-generation of digital assets, SFTs.

6 min readDec 31, 2022

Going into the new year, we should acknowledge the continuous, ever-changing nature of the global economic landscape. We should also acknowledge that despite uncertainties, there will always be opportunities for growth and innovation. In 2023, Solv Protocol continues to be committed to further innovations to enable anyone to create and trade the next-generation of digital assets, SFTs.

In this issue, we wanted to reflect with our community on the progress and accomplishments we’ve made over the past year as well as share some exciting plans we have for the coming year.

Business: Revenue and Growth of SFT Adoption

It’s important to note that our marketplace experienced significant growth in 2022, with trading volume reaching $88,292,189, a 29-fold increase compared to the previous year. Despite facing challenges in the market, our team and the broader Solv and SFT community continues to drive development and progress forward.

SFT-Powered Bond

The demand for money saw an increase due to fast economic growth, leading to a higher likelihood of DAOs borrowing money to finance their projects. Solv’s debt financing solution, the Bond SFT, leverages the high level of transparency offered by blockchain to quickly build trust between lenders and borrowers, potentially making DeFi a more efficient debt financing market than traditional (TradFi) debt capital markets.

6 issuers raised liquidity on Solv, issuing a total of $2,590,6000. This includes Perpetual Protocol, Izumi Finance, and Unslashed Finance.

Want to raise liquidity? Contact ray@solv.finance

2. SFT-Powered Vesting

Solv’s Vesting Voucher is an SFT solution that helps manage and distribute allocations. It can lock and vest any crypto assets according to a predetermined schedule.

More than 60 projects have utilized Solv’s Vesting SFT solution to manage and distribute token allocations.

Want to leverage your allocations? Contact ray@solv.finance

3. Dream Voucher

Solv’s Dream Voucher is a lightweight SFT solution that enables early, tokenless blockchain projects to boost community growth by rewarding community members with the promise of future tokens.

15 projects have used Dream Voucher to boost community growth by rewarding future tokens to community members.

Want to leverage your tokens? Contact ray@solv.finance

Development: Product Updates and Enhancements

Multichain expansion

Our development team is deep in the lab, working tirelessly, to expand our operations to multiple chains. This includes Ethereum, Polygon, Fantom, Binance Chain, and Arbitrum. Having our solutions support different chains allows a deeper interconnection and development with the growing DeFi ecosystem.

2. Technical architecture upgrade

Solv’s dApp technical architecture was upgraded to a hybrid architecture which provides a better user experience in terms of page response speed and ease of use. This work helped to lay a solid foundation for faster product iteration and business expansion.

3. Diverse product support

Based on the products developed in 2021 year, we added a variety of business models, including Vesting with an uncertain date, general points, convertible bonds with a price range, credit bonds with call options, and pure credit bonds. We also developed a variety of SFT solutions including Flexing Vesting Voucher, Dream Voucher, Convertible Voucher, Bond Voucher, and Credit Bond Voucher.

4. SFT marketplace upgrade

Further expansion and optimisation of the secondary market was completed to provide support for newly launched products. This work also helped to further develop the primary market, bringing a new primary market issuance model to all Solv solutions.

Community: Community Building and Engagement

Strategic partners +++

In the DeFi world, it’s important to collaborate with other partners in order to unlock Solv’s full potential. This year, we’ve formed strategic partnerships (i.e. Binance, OKX and Cobo ) and are designing in-depth collaboration plans to develop solutions that the market is missing.

2. Community Boost — 108K+ followers, 107k+ community members

Our community has grown significantly this year, with Solvians from around the globe joining us on Twitter (108K+ followers), Telegram (40K+ members) and Disord (67K+ members). We are grateful for your support and contributions.

3. New investors, including Binance

As an early-stage startup, we rely on the support of investors to help us grow. This year, we welcome four investors that have joined Solv’s mission: Binance Labs, Blockchain Capital, Sfermion, and Gumi Cryptos Capital. For our existing investors, we thank you for your continued support and we remain focused to build a strong business in 2023: IOSG Ventures, Defi Alliance, The Spartan Group, Axia8 Ventures, CMT Digital, The LAO, Shima Capital, Apollo Capital, CMSholdings, Kronos research, Krypital Group, Hashed, SNZ Holding, Maple Leaf Capital, HASH Capital, and Zonff Partners.

SFT Ecosystem Expansion

ERC-3525 was accepted as a final ERC for SFTs

The Ethereum Foundation approved ERC-3525 Semi-Fungible Token as its 35th ERC token standard on September 5, 2022, putting semi-fungible tokens(SFT) on par with fungible tokens (ERC-20) and non-fungible tokens(ERC-721).

To learn more about SFTs and ERC-3525, watch this video: https://twitter.com/SolvProtocol/status/1607577383904907264

2. Launched SFT Labs as the ultimate hub for ERC-3525 builders

We’re excited to see the continued adoption of ERC-3525 and the innovations it enables. By open sourcing our code and providing a reference implementation and developer guide, we hope to encourage more teams to build on this powerful standard.

In addition to Solv Protocol, there are over 60 external teams already using ERC-3525 to develop their own products, such as Buffer, fujidao, and invar finance. ERC-3525 allows for a wide range of assets to be represented, including simple instruments like gift cards and loyalty cards. It is also possible to create more complex assets like bonds, futures or option contracts, ETFs, ABSs, and land titles. We’re excited to see the potential of ERC-3525 continue to be realized further in 2023.

Want to Solv？Contact ming@solv.finance

Intrigued? You can find more resources here: https://sftlabs.io/

A telegram group for EIP-3525 builders: https://t.me/EIP3525_DEV

Future Plan: An integrated infra

We’re currently working on a major upgrade: an integrated infrastructure that will allow us to tap into a new framework that will revolutionize the DeFi industry.

After engaging with numerous crypto-focused organizations, we’ve recognized the need for a comprehensive upgrade to the financial services landscape in the crypto sphere. Our goal is to enable crypto participants to have the ability to issue, settle, and trade financial instruments as SFT at a lower cost. Solv Protocol will focus on building this infrastructure to include several key elements:

An “asset-layer front end,” where financial instruments can be tokenized and easily traded among market participants using ERC-3525.
A “risk-managing back end,” which allows asset issuers to integrate costly legal documents and credit-enhancing measures with the front end, creating a seamless on-chain experience without sacrificing security and compliance favored by asset issuers and purchasers who are hesitant to take their deals on-chain.

Thank you to everyone who has supported us on this journey as we continue to develop and grow. The competition in 2023 will be more intense than ever before. However, competition leads to success, and Solv has been dedicated to development for the past three years and is now ready to put that work into action.