[Solv Protocol] [FINAL] [STIP - Round 1]

DAO Grant Programs Incentive Framework (Round 1)
1

SECTION 1: APPLICANT INFORMATION

Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.

Applicant Name:

Ray Wang, BD Lead

Project Name:

Solv Protocol

Project Description:

Founded in 2020, Solv Protocol is dedicated to becoming the architect for the next generation of finance, and the critical infrastructure bridging liquidity across DeFi, CeFi, and TradFi. It has introduced innovative products including Vesting Vouchers, Bond Vouchers, and our Fund SFT for on-chain funds.

Solv V3 allows global institutions and retail investors to access varied, trusted crypto investments on one transparent and secure platform. It also empowers excellent fund managers to efficiently raise capital and build on-chain credibility. With these capabilities, Solv facilitates the discovery, creation, and realization of real yields, advancing crypto finance maturity.

  • On-chain Fund Platform Powered by ERC-3525
    • Non-custodial
    • Product Diversity
    • Pioneering User Experiences and Composability
  • Institutional-Grade Risk Management Engine
    • Institutional-Grade Fund Screening
    • Multi-party Controlled Vault
    • Coordinated Settlement Procedures
Team Members and Qualifications:

Below are the core team members

  • Meng Yan: Co-founder
  • Will Wang: Co-founder and CTO
  • Ryan Chow: Co-founder and CEO
  • Ethan Y. Tsai: Lead Developer
  • Eva: Marketing Lead
  • Jing Xiong: CBO
  • Ray Wang: BD Lead
  • Serena: HR Lead
  • Summer: Design Lead
  • Zhang Ming: Product lead
Project Links:
solv-finance · GitHub
https://twitter.com/SolvProtocol
Solv Protocol | LinkedIn

Contact Information:

TG: @raywl
Twitter: @SolvProtocol
Email: bd-all@solv.finance
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes

SECTION 2: GRANT INFORMATION

Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size:

150k ARB

Grant Matching:

Yes we will do grant matching. Our Solv token is not live yet and we will issue future tokens ($fvSolv) packaged in the self-developed ERC3525 token(SFT, Semi-fungible token).

Grant Breakdown:

100% ARB(150k ARB) will be added as extra incentives for the fund products issued on Solv Arbitrum over 4 months, ideally bringing $15m in volume to the Arbitrum ecosystem.

Funding Address:

0x04dd7cF38a249a371a8e589bC1C44485BC791d3F

Funding Address Characteristics:

â…— multisig

Distribution Contract Address:

It will be provided when the $fvSolv incentive plan starts in coming weeks.

Incentivized Contract Addresses:

It will be provided when the $fvSolv incentive plan starts in coming weeks.

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.

Objectives:
  • User/Business growth
  • Bootstrapping new liquidity pools for Solv V3
  • Driving TVL and volume growth by variety of funds issuance such as RWA and delta neutral DEFI funds on the Arbitrum ecosystem
Key Performance Indicators (KPIs):
  • TVL (Product side)
  • New fund issuance volume
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?

Solv Protocol is going to issue multiple DEFI market making funds to allow the users to earn consistent and appealing returns within a controlled environment characterized by relatively low risk, such as the ongoing open-end GMX with total $20,000,000 capacity: https://app.solv.finance/earn/open-fund/detail/2

We have a plan of token emission to make our yield returns more attractive, as well as to bootstrapping the Token Governance; Adding the $ARB will help to consolidate this plan by attracting high value existing Arbitrum users to join us.

Additionally, by Q4 2023, we will deploy a liquidity pool starting from $10,000,000 AUM for the Solv FOF(Fund of Funds), we’re also looking forward to add some $ARB as part of incentives and ideally in 1 year we want to be the best player in this DEFI category on Arbitrum.

Justification for the size of the grant:

Currently we’re rebooting the activities on Arbitrum, and have issued over $3million funds to run DEFI Delta Neutral strategies on top of the native Arbitrum DEFI protocols.

Solv is confident to bring a variety of low risk yield strategies including DEFI and RWA to the Arbitrum ecosystem, with the $150k grant we can drive the product growth by making the yield strategies on Solv more attractive and reaching a new high AUM($30m ~ $60m) by end of March 2024.

940Ă—438 122 KB

Source: https://app.solv.finance/earn

GMX V1 Delta Neutral Pool Address：0xec56e3894e2352a03492c0d91538e9dda2206c76

GMX V2 Delta Neutral Pool Address：0x9f6478a876d7765f44bda712573820eb3ae389fb

Execution Strategy: [Describe the plan for executing including resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]
  • 100% ARB(150k ARB) will be added as extra incentives for the fund products issued on Solv Arbitrum
    • 75k ARB for Offchain/RWA funds
    • 75k ARB for Onchain Delta Neutral Strategy funds
Grant Timeline:

2023 October - 37.5k ARB

2023 November- 37.5k ARB

2023 December - 37.5k ARB

2024 January - 37.5k ARB

Fund Streaming: [Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your streamed at their discretion at any time?]

Yes

SECTION 4: PROTOCOL DETAILS

Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the Protocol Native to Arbitrum?:

No. Solv V3 supports a number of chains and growing our presence in the Arbiturm ecosystem is one of our key goals

On what other networks is the protocol deployed?:

Ethereum Mainnet, Mantle, Binance Smart Chain, Polygon, ZkSync

What date did you deploy on Arbitrum?:

Apr-11-2022 - Solv V2 convertible bond issuance for Strip Finance

Protocol Performance:

Since deploying on Arbitrum, Solv has completed a total of $5.5m fundraising, with current AUM of around $3.3 million. The number of independent investors is 240.

The main activities of Solv on Arbitrum include:

  1. On April 2022, SOLV V2 has issued a onchain bond for Strip Finance and had raised $2,000,000 on Arbitrum:

Fund receiving and market making address: Token Transfer | Arbiscan

The Bond Issuance address: Solv Protocol: STRP Bond Voucher | Address 0x32126ae067ec31974180f79b6313ae986a375faa | Arbiscan

  1. Blockin GMX Delta Neutral Pool is our biggest Arbitrum pool at the moment. This pool currently holds $2.7 million in assets(https://app.solv.finance/earn/open-fund/detail/2). We have also launched the GMX V2 Delta Neutral Pool, which currently holds $0.3 million in assets(https://app.solv.finance/earn/open-fund/detail/5 ). Through these pools, we provide stablecoin yields that are not affected by market price fluctuations for everyone.

Officially launched in 2023, Solv V3 has pioneered the construction of a trustless fund infrastructure based on ERC-3525, and has served over 25,000 investors, with over $150 million raised for funds since the launch. On Arbitrum, we’re confident to reach over $15m AUM in Q3 for the recent open-end GMX fund https://app.solv.finance/earn/open-fund/detail/2 , which will drive the growth of both Solv and Arbitrum in users and TVL.

In the future, Solv V3 is not limited to issuing DEFI marketing making products, but also more LSD, CEFI, TradeFi assets, RWAs, etc.

We believe onchain asset management will be a long term game and we want to expand it with strategic partners such as Aritrum, to build a “BlackRock” of DEFI.

Protocol Roadmap:

Q3 2023 - Originate LSD funds and RWA funds on Solv’s platform, expanding asset classes.

Q4 2023 - Roll out a robust risk management system to monitor strategies in real-time and optimize returns versus risks.

Q1 2024 - Introduce a secondary market for trading fund tokens before maturity, powered by our ERC-3525 standard.

Audit History:

The Solv V3 smart contract has been audited by Coinstep, Salus, Secbit, Slowmist, Certik and Hexens, and has handled over $150 million in funds.

Audit Reports: GitHub - solv-finance/Audit: Audit reports of SOLV Protocol

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?:

Yes, a new Dune dashboard will be created to track the KPIs no later than the middle of October.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?:

Yes, we’ll provide updates according to the new Dune dashboard.

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:

Yes

2 Likes
2

This needs to be expanded, its too vague. Also how can can claim “ideally bringing $15m in volume to the Arbitrum ecosystem.”?? How? What sort of volume?

2 Likes
3

Hey ArbUSER,

Thanks for asking!

For details of grant distribution, please see the “Execution Strategy”.

And the estimated new volume in KPI includes new tokens to purchase the funds on Solv crossing chain to Arbitrum, and of course we welcome the existing Arbitrum users to join us.

Based on 150k ARB rewards in 4 months, it makes $32k rewards per month, which can be 2.56% extra APR for a fund with $15m size for eaxample. The return of the funds on Solv now are 4~15%(most are Delta Neutral/Low risk assets), plus the matching grant of $fvSOLV, which will make the ROI pretty juicy for our users.

If anything else for a better understanding of Solv’s product, you’re always welcome!

2 Likes
4

Thank you for the reply, can you still explain though how do you get $15m of new volume for Arbitrum? How does that work?

5

Hey ArbUSER,

Good question.

Why are we so confident with the KPI of over $15m new volume? Since the GMX delta neutral open-ended fund launched on July 31st, this fund has raised $3.3 million in total over 2 months, with all native yield returned to investors. Except a very small portion hedging in the CEX, most of the fund remain in the Arbitrum ecosystem as the chain TVL.

As the proposal mentioned, there will be more onchain yield strategy fund as well as some offchain trading strategy fund going to be issued in coming weeks, plus the Grant & matching Grant incentives, yes we’re very confident to reach over $15m new volume in few months for Solv Arbitrum and bringing brand new “Actively Managed Yield Assets” to all Arbitrum users!

1 Like
6

Solv has all of its TVL on Arbitrum through GMX vaults.

This amount requested is too high compared to Solv’s TVL, and considering that the protocol it is building on top of is also requesting 14m ARB.

Therefore, I am not sure how additional Solv incentives would increase and grow the Arbitrum ecosystem.

Solv should therefore focus on reducing the amount and providing more value to other ecosystem protocols.

1 Like
7

Hello @Ray thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.

1 Like
8

Hello meyaf320219,

Thanks for your comment.

The GMX Delta Neutral fund is just a new start for Solv on Arbitrum, as mentioned beside the onchain yield strategy fund(not limited to GMX only), we will provide much more including offchain trading strategy funds or even RWA funds on Arbitrum.

For the Solv’s own $fvSolv incentive plan, we’ll sync to Arbitrum community at the very first time once the it’s live. You’re welcome to stay in tune with us for this!

1 Like
9

Can you elaborate on how you will apply the incentives to RWAs, and can you also provide the contracts?

10

Hello @Ray ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

11

Not bad, I use Solv and have been following the team for almost 2 years, it would be cool if the arbitrum supported them.

12

@Ray Friendly reminder to complete the following:

13

Hey @ stonecoldpat @ cliffton.eth @ eli_defi,

We’re ready, please help to move this proposal to “FINAL”, thanks a ton!

14

Just did it and many thanks, Matt.

15

@cliffton.eth Could you please help Solv move to Final?

1 Like
16

Post has been marked FINAL and locked.

1 Like
17

We appreciate Solv’s intentions of bringing more users to Arbitrum and increasing TVL. However, we think the proposal has some uncertainties on how the protocol will reach its objectives through the grant. A more definitive roadmap is required before granting $ARB. Therefore we vote against this proposal.