Proposal: Convertible Voucher Offering on Solv

Hi guys,

Ryan here from Solv Protocol!

About 2 weeks ago, we had 2 AMAs both in Unslashed’s Discord and Solv’s Telegram. Today, I would like to submit this proposal to have Unslashed be the first protocol to issue a Convertible Voucher.

As the second member of Solv’s financial NFT family, Convertible Voucher is a structured product that can be converted into a predetermined number of tokens or stablecoins under certain conditions.

Essentially, it features a flexible payout mechanism based on multiple release parameters including the future trading price of the underlying asset and a bond range. Detailed information can be viewed here.

As an asset class, Convertible Voucher allows voucher issuers to borrow money with its own tokens as collaterals with no liquidation risk. For investors, they can get a higher APR than Aave and Compound. Meanwhile, as long as the token price doesn’t drop below the lower range, investors will enjoy a buffer protection of their money. When the token price breaks through the upper range, investors could enjoy a certain upside.

The goal of Unslashed Convertible Voucher is to avoid conversion at maturity. Unslashed will eventually return stablecoins and investors could receive higher APR than Aave and Compound under the same condition. Unslashed can use the borrowed money to expand business.

Learn more about the Convertible Voucher

You can also view the AMA at Unslashed Discord AMA session: #solv-convertible-voucher-ama

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Thank you @Ryan for taking the lead on this one!

I would like to add a few points:

  • The idea for the USF convertible is to have a short maturity and up to $1m in notional
  • The objective is to be the first protocol to experiment with this product (thus the start with the Foundation’s tokens) and eventually collaborate on a second one with a longer maturity + for example use it as an alternative funding mechanism with the DAO instead of the Foundation
  • The principle is also to avoid having a conversion event (the upper limit is there for that)
  • We are also exploring some insurance products that could come with the convertible voucher and there are probably additional synergies

As said previously, I am super excited about this product!

Anyone interested in trying it out can drop me a line on Discord :slight_smile:

I will be submitting this for a governance vote!

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Snapshot vote happening here: Snapshot