Solv IC Market: New direction of NFT to reconstruct the primary Market with NFT

Understanding Solv IC Market in Five Minutes and Restructuring Primary Market with NFT

Original article by Solv Finance

Solv IC Market is the first innovative application launched by the Solv team based on the original asset standard VNFT.

Solv IC Market -- A New Market for Share Trading

Solv IC Market is a Defi application based on the innovative VNFT bill token protocol. Its purpose is to use VNFT to express the contractual relationship of investment in the primary Market, reduce the execution cost and trust cost of signing contracts between project parties and investors, and promote the circulation of project lockup shares in the Market.

What problem is Solv IC Market solving?

In the primary market, what the investor buys from the project party is usually not the spot, but the futures with a certain lockup period. That is to say, what the investor trades with the project is a right to withdraw tokens in the future. This raises two core questions:

The first, the share of lock warehouse of investor lacks fluidity. When investing in the primary market, a large number of Token shares in the hands of investors are locked up. Faced with the rapidly changing market, they cannot respond in time, and it is easy to miss the market opportunity. In a bull market, they cannot transfer and circulate, and when they finally understand the lock, they often rush to break the market, causing a lose-lose situation.

Second, investors and investors, investors and friction appear easily in the project in investment transactions between the parties, when investors try to share transfer lock storehouse, generally difficult to find a family, even find the counterparty, transfer process also is full of all sorts of risks, red tape, high cost of trust where share trading in the OTC market is difficult to develop. At the same time, for investors, most of the release of project lockup shares is managed in a centralized way, or even carried out manually, which brings a lot of risk of default, and also increases the transaction friction between investors and projects.

Third, once a breach occurs, the implementation cost of SAFT agreement is too high, which often requires recourse to legal means and costs are too high.

In conclusion, the primary market is still stuck in the "CEFI era", while we have seen that the DEFI protocol helps people solve the trust problem and facilitate financial transactions at a very low cost in the secondary market trading, lending, insurance and other markets.

A one-stop solution based on investment certificate bill tokens (IC)

Solv IC Market uses an investment certificate instrument token (IC) to represent the contractual relationship between the investor and the project party. The transfer of IC represents the transfer of investment share. And IC can support split and merger, so that share trading is full of flexibility.

The project party will first put Token into the Solv protocol, stipulate the unlock form (linear unlock, phase unlock, one-time unlock), unlock time, unlock mode, and generate a VNFT bill with the agreed conditions, which is the process of creating IC. Thereafter, whoever owns the IC has the right to withdraw the released Token from the SOLV protocol as agreed, and the release and withdrawal will be completely executed automatically based on the smart contract supervision.

Create the bill

VNFT is a new token protocol created by the SOLV team specifically to describe ticket tokens. IC was the first VNFT to be introduced.

Why invent a new token protocol? You can't use what you have?

Obviously, in order to accurately express and execute warehouse conditions, ICs need stronger information description capabilities, and ERC20 is clearly not competent. ERC721 does not support quantitative splitting at the protocol level, nor does it meet the requirements of IC. ERC1155 does not support splitting of non-homogeneous assets at the protocol level, and while it can partially simulate this feature through its ability to describe the number of tokens, the shares after this simulated splitting are homogeneous by default. However, in the context of share trading, the most important capability is that each share can be differentiated by the pace of extraction. So we had to drop ERC1155 as well.

Therefore, Solv had to create an entirely new asset protocol, the VNFT. VNFT is compatible with ERC721 and can therefore be considered an upgrade and enhancement to ERC721. VNFT has a very strong information description ability, expressing complex warehouse locking conditions and release patterns. It also supports free splitting and merging, sharing assets, and each share can support further actions and state changes. (Currently VNFT has not submitted EIP proposal)

Note details and operation screen

VNFT is a combination of financial and playful collectibles. In addition to describing Token unlock information, each IC will also link to a beautiful ticket design and its corresponding commemorative significance. When the rights of an IC are fully fulfilled (the user has withdrawn all the tokens), is it possible that this exquisite note, which once represented the right to invest, will become a collector's item for some people?

The first IC created by Solv

The first project to use the Solv IC Market application is the Solv Project itself, which will put a certain amount of $Solv into an agreement, generate notes to be delivered to early private investors, and open up free trading between primary Market investors.

Solv IC Market will integrate & NBSP; OpenSEA, to build the market around IC creation, split, merger, display and trading. By default, OpenSea supports a variety of trading modes, including limit sale, auction, bundle sale, Dutch auction, whitelist sale, and more.

The investment interests under contract supervision, the rich and transparent trading experience, and the free flow of the global trading Market will be the panoramic view of the primary Market in the DEFI era. Solv IC Market is committed to creating a new primary Market infrastructure.

Solv IC Market application scenarios

Scenario 1

Solv IC Market supports all projects to deposit tokens on our platform, set lock-in conditions, and issue appropriate investment notes to thousands of investors. Compared with IDO, this mode is easier to form a long-term interest binding with users. Compared to CoinList, this model supports free transactions between private users, which releases the activity of transactions.

Ivo (Initial VNFT Offerings)

Scenario 2

Discount market for bills. When spot and lockout notes for tokens appear on the market, people can exchange the lockout notes for spot at a certain discount rate, which will open up an emerging market that is still empty in the DEFI world. In particular, the discount market will help produce discount rate curves of different maturities, and this important market information can lead to a series of new trading activities, such as interest rate swaps.

Discount market for bills

Scenario 3

Establish a market for investment notes (forward contracts) where investors can sell ICs directly to obtain highly liquid assets such as dollar stablecoins. The relationship between the price of the forward bill and the spot price of the underlying Token asset can reflect the market's medium - and long-term confidence in the asset, which is also one of the indicative information of the market.

The bill (forward contract) market

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