This proposal provides a financing solution, Bond Voucher, for Paraswap with the purpose of capital diversification under the impact of the market downtrends.
This is a temperature check proposal, the objective is to confirm the Paraswap DAO is interested in a collaboration with Solv on the Bond Voucher.
What is Solv and the Bond Voucher
Solv Protocol is the first and largest bond issuing and trading marketplace backed by top-tier institutions including Blockchain Capital, Binance Labs, Sfermion, Spartan, IOSG and so forth.
The Bond Voucher is Solv’s premier debt NFT to bridge TradFi with DeFi. Bond issuers can issue debt capital through a Bond Voucher, customizing key financial terms in a no-code front end. The issued Bond Voucher is a NFT which represents the lender’s financial claims on the underlying bond.
Since its February launch, Bond Voucher has successfully raised $1MM for Unslashed Finance, $6MM for Perpetual Protocol and $2MM for Strips Finance and $11MM for iZUMi Finance and $4MM for Solv.
For more information, please taking aim at:
Solv bond voucher overview : Solv Bond Voucher Overview - Google Docs
Amid increased market volatility, we are seeking to use Bond Voucher to help Paraswap diversify capital resources without the need of selling any assets. Our team will manage the entire process and key execution steps, including bond voucher design, smart contract development, incentives, sourcing lenders and repayments.
Paraswap is one of the most recognised Web3 brands with a great track record and supported by many Tier 1 investors. This provides a solid foundation for trust amongst the lenders. After thorough discussion internally, we are proposing a bond issuance for Paraswap.
Aside from capital diversification, the advantages of this bond issuance are summarized below:
- Low-cost and low-risk funding resource
- Solv has robust relationships with top investors and lenders to help close the bond sale in a short period of time
- Additional $SOLV tokens as incentive rewards
Following are the proposed bond issuance details：
Issued Amount: $2-4MM
Duration: 180 Days
Borrow APR: 8%-10%
Payment Currency: TBD (USDC ideally)
Repayment frequency: Principal and Interest Payable at Maturity
Type of Bond: Collateral Bond
Collateral: 2-3x of Issued Amount
Custody: Not Required
Conversion terms: TBD (example; current market price +50%)
A number of partners and investors have already reached out to Solv and expressed strong desire to purchase a bond issued by Paraswap.
Official Doc：Solv Protocol - Solv Documentation