Ryan Chow on Solv Protocol’s financial NFT ecosystem and ERC-3525 standard

0:01i'm ashton addison from block west capital for investment pitch media in the crypto coin show and today on blockchain interviews we have ryan chow co-founder of solve protocol ryan welcome to the show uh great to have you on today thank you so much for taking the time yeah thanks ashton yeah i'm ryan a from seoul protocol let's dive right into the world of nfts

0:24i know solve protocol is pioneering something that's really needed in nfts expanding them out into financial nfts and moving into different industries as we continue to grow uh blockchain seeping into other industries which is which is very exciting um and i would love to hear more about that but first let's start with you know solve protocol at a high level what is your team

0:48focused on and i know it's a it's a whole ecosystem of different things so let's start with that yeah thanks for a question so for so in one sentence we are a financial nft meeting managing and trading platform so a it's quite simple you can just meet a financial entity freely on our protocol and also you can manage it you can split the nft merge the nfp transfer

1:15the nft and also you can list the nfp on our marketplace to change it freely so yep that's it that's a very simple a introduction of our support definitely and i would love to get a better explanation for the viewers around the difference between an nft like a crypto punk or a board ape you know jpeg kind of nft that you see and the kind of financial nfts that you're

1:40seeing on solve protocol and in the industry yeah you know for most of the people when we think of empty a the arts or collectibles or in-game items we come up with our with our mind right so but a what we are really focused on is for solve is financial energies we really believe that nfts could be a very good carrier for equities for kind of financial ownerships so including

2:09you know all the financial positions we can take financial entity to represent that so that's the difference between financial entities on some other infts and we really believe that financial entities because a financial ownership is a there are a different kind of kinds of financial entities out there and the volume in conventional finance we we can

2:34it turns out that it's it has a very high full balloon so we do believe that financial entities can just like a a what it did what it did in conventional finance in the fight a the balloon can surpass like you know erc 20 tokens which represent like equities a or tokens some governance tokens but i can also surpass the volume of the arts collectibles kind

3:01of assets a kind of nfps definitely yeah i'm really excited to see the financial nft ecosystem like solve as well continue to grow because the financial sector and d5 is really the core of the beginning of innovating through all of these different industries is the innovation in the financial industry through cryptocurrencies decentralized trading and financial nfts so i really

3:27do see a lot of promise in this area now i was looking through uh your work and i also saw that you're focused on the solve vouchers uh which is this financial nft ecosystem can you talk about that and what makes that special yes a but before this question can i talk a little bit about why financial enemies because i i think maybe yeah a lot of people might ask oh why

3:54financial entities maybe we can take erc-20 tokens to represent the financial a ownership of position for the for for the users why financially yeah so you know for this for this one a because we found out that a like uni swap they take a erc 721 to just represents the lp position for their a market makers for all of their users right so it found out it it means

4:22that a they want to they want to approve their users to do market making to customize their funds when like when do cut market making like they allow the users to customize a a price range a like for in each pool like for ethereum and and usdc they allowed you to a to do conduct market making from the range from maybe

4:50one thousand dollars to three thousand dollars kind of rich so that's why they take a nft because nft could be a kind of tokenization of such kind of a very diversified a liquidity pool so they allow you to customize right so also not just for unit swap but also for all kind of a financial smart contracts if we want to tokenize

5:18it while we want to diversify it we want to allow the users to customize their financial position then we need to take nft to just represent that kind of to the you know very rich information to describe them so that's why you need to take erc 731 but the point here is that we want if because financial position is fundable it's divisible if we take nfp to represent it

5:45then it's indivisible so it would be a problem that's if you want to split this financial position to sell it to borrow against it so it would cause a lot of trouble so then so that's why solve create a new token standard which called erc3525 so that's new standard combines the divisibility of the rc 20 tokens and the non-fundability of a the the especially

6:14the reach information description capability of the nmt erc 721 so it's compatible with with the rc7201 while it's splittable so yep that's why we believe that's a erc 3525 and financial entities is the future okay that makes a lot more sense thank you for clarifying that ryan and even just an lp token for uh on a dex is a great example but i

6:43feel like that it can be any customized financial product yeah and with the division as well uh with the new standard is very important because um trying to sell you know either having to sell your whole position or or none of it and you're sort of stuck with something that's not as liquid as a division yes yes exactly very cool thank you for that and um i

7:08would you know there's so much to cover uh with solve protocol and obviously that's every aspect is super important i would love to touch on you know how you're working with the dow treasury management and and with the salt vouchers as well yeah so yeah thanks for the question so because soph is already a ecosystem financial energy ecosystem already so

7:32we have different levels just like i mentioned the erca 3525 token standard is is the underlying a layer the infrastructure of soul and then a is so vultures so we build a we call all the financial entities we build soul vouchers that's why this is where these words come from and so for for some vouchers what we have built a a is one is investing vulture so it's entity which can

8:01represent allocation fasting token you can wrap the erc20 tokens a deposit erc20 tokens inside of the nft and then set up the vesting schedule then you create the vesting investing voucher and then you can transfer the voucher to you know just anyone else and also you can listen to before the token are unvested so that's the that's the best involved sure

8:28yeah and the second one is convertible voucher so it says financial structure products it's a combination of a corruption and a min and a put option and a you know and and a zero coupon bond so for this one a we allow the dows or the users to sell their tokens in a much more maybe some some some customizable and customize the weight so that's the

8:54second a product and the third product is bound vulture it's a it's a it's a bond or a convertible bonds so you can take this a voucher to create a bonds for yourself help create a convertible box it may bounce plus a call option for your for yourself so that's three main a product lines three main financial energies we have built so what's the relationship between them and what's the

9:20what why we create those of the solutions so if we combine them together now we position them as a a dow church in management two sets because we found out that a lot of doubts they are just they just want to raise capital they don't want to if they want to sell the tokens but they don't want to bring such kind of negative impacts on the second secondary markets but they have no way

9:47they if they can just sell the tokens and everyone would find out that oh they are selling the tokens it seems they don't want to yeah keep keep going so kind of a things right so if we sell the vesting tokens if we sell the investing vouchers then maybe we can just find out a better way a decent way to just a to raise money while people can accept that that's that's how

10:12fasting voucher can can work right so the second like also you can take convertible voucher because it's it's it's a corruption and a good option the the combination of such kind of a a financial products then you you sell it it's it it won't impact the a secondary market directly as well so that's convertible vulture and also for bonds voucher yeah of course you are you

10:40are taking on debt so you are not selling the tokens you raise the money and then you you use it and finally a maturity you you just pay back repay the principles and the interest and that's it so actually those of a solution are be designed for you know for the dolls to risk capital for financing and while we can get rid of the impacts on the secondary market

11:09incredible ryan it's great to see these products solving so many inefficiencies of dows of investing private uh access to funds liquidity um i'm really excited to see this actually move into the market um and and with that said thanks are there already taos or ecosystems that are already utilizing us or or what stage is it at yeah yes a so different is a different

11:39program line has different a section now so for basting voucher we have those over 30 project partners so they are taking this solution to you know to manage the lock up allocation for the investors or distribute vesting tokens to their communities or just a conduct ibo like so ibo is a new fundraising way just similar with coin list so we we can see colonies are

12:06helping the helping dogs sell their investing tokens to the public so for our ibo is the same you just mean the nft it's a divisible financial entity divisible basic vulture and distribution to like thousands of users you don't have to sign this up to agreement with them then yeah so that's that's that's a that's in voucher so we have got around 60 million a

12:34a total value locked in this a voucher so over 60 million dollars worth of the native tokens are being deposited into this investing voucher for for for you know distributing the investing token so that's this one but convertible vouchers like way we also it is more suitable for like some mature a dolls or projects like perpetual protocol like on slash they took this solution to raise a

13:03over a 3 million and one billion dollars separately for for their own projects and for bunk vouchers yeah we are we would a unleash it we would just roll out it a in the next week so it's it's still a new one but we got a lot of commitments on this one because taking on that is is a wonderful thing for most of the dolls yeah that's incredible to hear ryan that

13:31there's already traction and speaking of partnerships i know you you mentioned you have a lot of partners who are already working with i recently saw my dance labs was getting involved with solve protocol maybe you can talk about that relationship and how that's going to help grow yeah yeah that's a very good question so we can see like finance ecosystem

13:55including like finance a finance chain kind of a ecosystem is is growing very fast so they are looking for they also like finance team they they really believe in financial entities as well they do believe that that's the future so that's why they finally decided to support seoul protocol and what what's the exact collaboration a between a sofa and bonus one is to issue financial

14:23energy together so if if we we just a cooperated with finance nft platform one of their a you know nft kind of arm a together to issue a to to launch some you know do do investing voucher or something like like some other projects investing vouchers on their nfd platform so that's one thing a that's we we co-issue some financial entities secondly like we can

14:50see finance a finance chain has a lot of a projects they also need to take on that so that's why a they think yeah like one voucher could be a very suitable a solution for most of their you know project especially some top projects which has a very healthy a cash flow has a very decent uh uh a very how very decent investors true kind of

15:20projects so that's the second thing and also for the third thing is that's know a4 for kind of a minus ecosystem there has a day they have a lot of a money to to you know deposit into different liquidity pools or money and we can see a like vulture such kind of a investment vehicles could has a good fit ao like asset management because

15:47you for for all the bonds a issued by dows the interest rate could range from like eight percent to ten percent and with the corruption so it's a very attractive you know investment targets right so that's why also they can they they are taking a look at those kind of a vehicles to invest that's incredible ryan thank you for touching on all of these different parts

16:14of the financial nft ecosystem that solve protocol is running and i would love to get you know your vision on how quickly the mainstream of defy is going to see financial nfts and we're already seeing it from a lot of partners but how quickly do you think it's going to spread to all of blockchain yes i think a it take maybe around half to one year to

16:42to see maybe some you know a much more adoption a compared to now because a we start at this we started these projects from october 2018 2020 so at that time no one no one no one talked about a financial aid piece and we just say oh financial enemies is the future and people are just arguing yeah what we're arguing yeah why so but for now we can see a lot of

17:10projects are taking elc3525 to build their device protocols they are they just if you take this erc 3525 then your assets could be you know traded also marketplace you can enjoy the traffics a yeah that way effects we have been we have built already or on our protocol and also a they can make their and make their own defined smart contracts be transferable

17:37they tokenize the smart contract into these financialities right so yeah i we can see more and more traction not just a from soap team but also some other projects team like fuji dao they're they're building some very cool stuff based on elc 3525 so and and yes what i really think is that yeah uh we will really start to see

18:05maybe yeah one year is enough to see a mass adoption of financial aid very cool and i guess that will also be good for the solved protocol financial nft marketplace where people can you know actively trade can you talk about that and what stage the marketplace is at right now in terms of growth yes yes so we have talked about er3525 and so vouchers and now is a

18:34it's a higher level of our ecosystem it's application level so once you use some vouchers based on elc3525 and then you need to take the soap vouchers to somewhere to be shaded right so on application layer we have three modules now one is a dashboard is a place where you can manage yourself vouchers and second is the ibo market so it's a primary market it's all free market for

19:03some vouchers so you can offer the a sole vulture's own ibo and thirdly is the soft marketplace you can cheat the soap vouchers freely so on the application level we have three modules here so for the so marketplace yeah you can just list your vouchers and then it's an odc market it's quite similar with openc but it it supports a fractional trading so

19:32like if if if at least an order a vesting voucher which has like 10 000 soap tokens inside of it then you list an order on the marketplace right and then someone come to here to buy your voucher they can just they don't have to buy all you know all of the voucher like 10 000 tokens they can just buy maybe 10 tokens or even 0.1 token so that's how a yeah they can enjoy a very frictionless

20:01a trading experience than the you know also collectibles no one will force you to buy hold of it it's the best soft marketplace amazing sounds incredible and uh i gotta go check it out for the viewers that want to learn more about the marketplace and just more about financial nfts and and how sol protocol is growing and applications that want to start using this for their

20:26smart contracts and for their ideos what is the best way for them to get involved yes a yeah from a retail investors or from a uses a perspective i really believe that's yeah like all that when all the dows issue their bonds issue their vastness vouchers also protocol then you can just come to our a marketplace to participate to just a select some very high quality some some

20:56very high class a assets investment targets like a now we have a lot of cooperative projects and they just choose a ivo kind of a you know kind of offering to distribute their investing tokens at a lower a valuation then you know then they're ideal on like some other ideal platform so if you come to our protocol just open

21:24the ipo page or just open the like soft marketplace and you can find out a lot of different kind of vouchers but you but before that you need to understand what's the exact what exactly the vouchers mean because different vouchers there and then you you can just pick up something if you are quite a aggressive uh aggressive on our investment um then maybe you can take a look at investing

21:51voucher because it's it's just a lot of tokens it's a passing token but if you are quite passive then you can just take a look at bank vulture because it's a bond and you can earn a very you know a promising well very fixed a income interest rate while enjoying some upsides if the corruption can be executed yeah awesome something for everybody uh

22:18yes i really do appreciate you coming on ryan to speak about financial nfts and educate us all and just about how this is going to be integrated into almost every smart contract and application and and probably will be the basis of defy to make it easier and more liquid so yes thank you so much for taking the time all the best with everything that we've

22:41spoken about moving forward in the growth of so solve protocol and let's follow up in the near future yeah thanks for a wonderful hosting and yeah have a good day you