What is Solvent

Article Summary, Automatically Generated By AI

About Solvent

Features

Converts NFTs to fungible tokens (droplets) for instant liquidity
Droplets are tradeable on Serum orderbooks
Integrates with DeFi protocols for lending, collateralized loans, perpetual swaps, and more

Problem Solvent Solves

Illiquidity in NFT trading, requiring high capital for single trades

How it Works

Instant price discovery
Instant liquidity for NFT depositors

Technology Stack:

Solana blockchain

About Solvent: Empowering a New Era of Decentralized Finance

Distinguishing Characteristics

Solvent is a pioneering platform that converges decentralized finance with NFTs, leveraging Solana’s infrastructure. By facilitating the instant conversion of NFTs into fungible tokens, dubbed “droplets,” users can access immediate liquidity. These droplets are seamlessly tradeable on Serum orderbooks, just like any other fungible tokens. Furthermore, droplets can be effortlessly integrated with existing and emerging DeFi protocols and applications, ultimately enabling a wide range of use cases, including lending, collateralized loans, perpetual swaps, and more, all built upon NFT assets.

Introduction to the Pinnacle of Cryptocurrency Trading

Solvent is a pioneering platform that enables the seamless conversion of non-fungible tokens (NFTs) into fungible tokens, dubbed “droplets,” thereby providing users with instant liquidity. This innovative solution empowers users to trade NFTs at unprecedented speeds. The droplets can be effortlessly traded on Automated Market Makers (AMMs) and Serum order books on the Solana blockchain. Users have the flexibility to redeem their droplets for the underlying NFTs stored in Solvent’s buckets or swap them directly for $USDC from within the platform. Furthermore, users can stake their droplet liquidity in designated pools to earn attractive rewards. The platform is poised to introduce a plethora of exciting features in the near future, including lending, loans, NFT derivatives, and more.

Problem Solvers at Your Service

Liquidity is paramount for facilitating seamless transactions in any tradable asset. However, NFTs currently suffer from a severe lack of liquidity. The prevailing methods of trading NFTs involve sale-based or auction-based mechanisms, where sellers list their NFT assets on marketplaces. In the sale-based approach, sellers set a fixed price for their items, allowing buyers to purchase the NFT asset at that price, thereby facilitating a trade. Conversely, the auction-based mechanism enables sellers to list their items for bidding, with the NFT asset ultimately being awarded to the highest bidder. Notably, both mechanisms require a substantial amount of capital to execute a single NFT trade, resulting in low capital efficiency.

The Operational Framework

The benefits of selecting Solvent for liquidity are multifaceted and far-reaching, offering users a multitude of advantages, including:

Seamless price discovery – With Solvent, users can effortlessly determine the optimal listing price for their NFT, eliminating the need for manual price negotiations and ensuring a fair market value.
Instant access to liquidity – By depositing their NFTs with Solvent, users can tap into instant liquidity, bypassing the traditional waiting period associated with finding a buyer and receiving payment, thereby ensuring swift and efficient transactions.

Seamless price discovery – By leveraging Solvent’s capabilities, users can effortlessly obtain an instant quote for their NFT, eliminating the need to manually determine a listing price on marketplaces.

Instant Liquidity – Solvent offers immediate liquidity to NFT depositors, providing them with instant access to funds upon depositing their NFTs. In contrast, traditional marketplaces require sellers to wait for buyers to complete their purchases, thereby delaying the receipt of liquidity.

Technical Infrastructure:

The Solvent Protocol’s smart contract, crafted on the Solana blockchain, is meticulously written in Rust programming language. To ensure the utmost security and code integrity, the contract has undergone a rigorous audit by Certik, with the comprehensive report available at: https://www.certik.com/projects/solvent-protocol.

The web application’s front end is built utilizing React, a cutting-edge JavaScript framework. Our NFT indexing process leverages Postgres tables hosted on Supabase, an open-source cloud service provider, ensuring swift loads from Solvent’s buckets. We employ Vercel for seamless CI/CD integration. Logflare and Sentry are utilized for logging, monitoring, and error monitoring, respectively. Furthermore, Checkly dashboards provide us with valuable insights into JavaScript page loads and related key performance metrics.

We authenticate the ownership and integrity of NFT assets and projects by conducting rigorous checks on the NFT token metadata, ensuring compliance with the Metaplex standard, which defines the metadata requirements for NFT projects listed on our platform.

Development Roadmap

Seamless Integration with Oracle for Real-Time NFT Floor Price Index Feeds

Each droplet, representing a hundredth of an NFT asset in any NFT project, enables the computation of the floor price of an NFT project on Solvent in USDC terms at any given time. This is achieved by multiplying the real-time price of the droplet for that project. Furthermore, integrating with on-chain oracles facilitates the creation of real-time feeds and quotes that reflect the dynamic price changes of these droplets.

By tapping into the oracle’s real-time feeds, developers and other web3 protocols can create innovative protocols and applications that integrate a stable Automated Market Maker (AMM)-based floor price feed, all built upon the Solvent ecosystem.

Introducing the Solvent SDK: Unlocking Boundless Possibilities

We are pleased to announce the public release of the Solvent JavaScript SDK, empowering developers and protocols to seamlessly query Solvent buckets data and integrate Solvent’s innovative functionality of tokenizing NFTs into droplets directly within their applications.

Synergistic Collaboration with Ethereum-Based NFT Initiatives

Our plan encompasses the seamless integration of Ethereum NFTs into the Solana ecosystem through the strategic deployment of cross-chain bridges, thereby empowering these digital assets with the robust features of the Solvent platform.

Synergy with Perpetual Swaps Protocol on Solana: Unlocking Limitless Trading Opportunities

The pricing feed of the droplets, as facilitated by the oracles, can be harnessed to trade floor perpetual swaps of the floor price of NFT projects, as inspired by the concept of floor perpetuals proposed by Dave White from Paradigm Research.## Features

Solvent is a pioneering platform that is revolutionizing the realm of decentralized finance by seamlessly integrating it with NFTs, leveraging the robust infrastructure of Solana.

Users can instantly unlock liquidity for their NFTs by converting them into fungible tokens, known as droplets, thereby facilitating seamless transactions.
These droplets are fully tradeable on Serum order books, just like any other fungible token, offering unparalleled flexibility.
Furthermore, droplets can be seamlessly integrated with existing and emerging DeFi protocols and applications, paving the way for a wide range of use cases, including lending, collateralized loans, perpetual swaps, and more, all leveraging NFT assets.

It enables users to instantly unlock liquidity for their NFTs by converting them into fungible tokens, known as droplets, thereby providing immediate access to capital.

Droplets are freely tradable on Serum order books, akin to any other fungible tokens, enjoying unhindered market liquidity.

Droplets can seamlessly integrate with a wide range of existing and emerging DeFi protocols and applications, thereby unlocking a plethora of use cases, including lending, collateralized loans, perpetual swaps, and many more, all leveraging NFT assets.