In this Telegram AMA recap you’ll find answers questions about the Solvent Protocol project. In an event hosted by Iris from MEXC Global, you will meet Dhrumil Mehta, Contributor of Solvent Protocol.
Dhrumil: I’m Dhrumil, contributor at Solvent, and work on all things product, tech & engineering at Solvent. Before working at Solvent, I was in the US and worked as a software engineer at eBay on payments software. Have a master’s in computer science majoring in AI and deep learning tech. Did some Ethereum hackathons, built toy projects.
Questions about the Solvent Protocol Project:
Iris: What is Solvent Protocol? Can you share with us more in detail?
Dhrumil: Definitely. Solvent is a platform for providing NFT traders with instant liquidity and is built on the Solana blockchain. Users can instantly sell their NFTs on our platform for floor price liquidity in fungible tokens (called droplets) of that NFT project. It also allows users in the decentralized finance ecosystem to invest in fungible tokens of the NFT projects with extremely low capital and get exposure to those NFT projects. In the near future, we’re going to enable financial applications like collateralized loans, lending, and perpetual swaps to these fungible tokens of NFT projects, and go multi-chain. Hope I answered your question.
Iris: Sure! Thanks for the explanation!
Dhrumil: No problem!
Iris: What triggers you to launch Solvent Protocol? What are some of the real-world problems/ pain points that Solvent Protocol aims to solve?
Dhrumil: Well so there are a bunch of problems we’re trying to solve here. but let’s start with one of the primary problems in our focus. Imagine a scenario where you want to invest some funds into a new project or an IDO, but you don’t have any other assets except for some NFT in your wallet. To invest in that new IDO, you NEED liquidity as soon as possible.
Currently, you can go to marketplaces, list them for a price (most likely a floor price since you want to sell it off instantly), and wait for the buyer. With Solvent, you can do exactly the same thing, without having to wait at all. You get the liquidity instantly and can use it for any other investments or even cash it out to $USDC.
This improves the flexibility of trading with NFT assets and also allows traders to quickly switch their holding positions from one project to another. Instant liquidity, no questions asked.
Iris: That’s exactly what people need right now!
Dhrumil: Yeah! Although would like to highlight that the current platform works best for floor NFTs because we give out the same liquidity to all the NFTs in the project without considering rarities. More things with rarities coming soon.
Iris: Can’t wait to see them!
Iris: What is the role of SVT in Solvent Protocol? Would you tell us more about its tokenomics?
Dhrumil: Super excited for the MEXC M-day! I wish everyone the best. About Solvent Protocol, SVT is the official governance token of the Solvent platform.
With SVT, users can do a bunch of stuff:
1. Participate in the community governance, vote on the proposals for developing the platform and shaping its future.
2. The Solvent team will use a portion of the platform revenue to buy back SVT tokens from the market and distribute it to all the users who stake SVT tokens regularly.
3. Users adding liquidity to the droplet pools of NFT projects on Solvent are given SVT tokens as rewards.
4. Also, in fact, 30% of the tokenomics are allocated primarily to the liquidity rewards for the droplet pools. So that the traders are heavily incentivized to provide liquidity to these pools.
Iris: Are there any exciting news or updates with regards to Solvent Protocol that you would like to share with the users?
Dhrumil: Yeah! Currently, we’re super excited to have our governance token SVT launched. Some of the things that we’re bringing shortly for the users:
1. Releasing the Solvent SDK and open-sourcing the platform for more developers to build projects on top of Solvent. This is in good priority and will be done very soon 🙂
2. Since we’ll be open-sourcing the platform soon, we also have an allocation of SVT tokens for sponsoring projects, bounties and developing the Solvent ecosystem overall
3. And a big priority will also be given to us going multichain as a protocol and onboarding NFT projects on other chains such as on Ethereum, and others. So we’re building on Solana as an infrastructure layer, but our plans are to be on all the chains eventually.
Iris: If you were to summarize your project in ONE word, what would it be? Why?
Dhrumil: Wow that’s a tough one. If I were to summarize Solvent in a word, the word would be –> “Speed”
Dhrumil: Liquidity for NFTs is extremely important and they’re highly illiquid right now. Users can get liquidity from marketplaces but the process kinda is inefficient and slow. Our focus at Solvent is to provide efficient liquidity solutions “instantaneously”. So speed is where our primary focus is.
And the fact that SVT token allows everyone to participate in shaping the future of this platform we have envisioned, is super exciting for us!
Free-asking Session to SVT
Q1. Do you still think that Solana is the right solution following their different network failures?
Dhrumil: That’s a fantastic question. So yes, Solana has gone down a couple times in the past months. But most of the failures have been due to the high traffic that the blockchain received and the failures have been due to network congestion issues. The reason we choose Solana is that it is highly scalable, the programming model it uses is very robust, the transactions costs are low, finality times are sub-second, so it can act as a really good and scalable settlement layer.
So our plan is to keep Solana as the settlement infrastructure while providing services to NFT projects across all the chains
Q2. Too many projects promise magic but never release any working product or prove any revenue, Within a short/long time of release. Is it like this? If not can u tell us, What makes it different from other projects?
Dhrumil: Appreciate the honest concern. Here are some of our numbers: we do have a working product live on Solana Mainnet. Launched on mainnet in early December 2021. NFT projects onboarded: 5. Number of NFTs traded: 300+. Total value locked: $450,000+. We’re here for the long term and not here to scam anyone!
Q3. What is the supply of Solvent Protocol tokens? And Which cex we can this token?
Dhrumil: The supply of the Solvent Protocol token (SVT) is 100 million of fixed supply vested over 5 years. The tokens will be tradable on CEXs: MEXC and Gate, DEXs: Raydium, and Cropper Finance.
Q4. Your project’s mission is interesting it requires a significant amount of user traffic to be long-term sustainable. What marketing plan do you have in place to boost the credibility of your project’s brand? Are you considering forming a strategic alliance to help you advance your project?
Dhrumil: That’s a great one. The core focus that our project is dependent on and we’re trying to solve, is ensuring high depth in the liquidity pools for the NFT projects. We have 30% of the token allocation of SVT as the liquidity rewards, so the users are heavily incentivized to provide liquidity to the pools. We do have good marketing plans too, but we believe that a great product markets itself, so our primary focus right now is to make the product as efficient, and easy to use as possible!
And for the partnerships and integrations, we do have Solvent ecosystem and marketing allocation of SVT tokens to develop an ecosystem of projects around Solvent.
Q5. Do you have AUDIT certificate or are you working to AUDIT your project, so that the security of the project becomes more secure and reliable?
Dhrumil: Yes our smart contract has been audited for security by CertiK. They’re a very popular audit service company. The audit report is available for the users on our website. And yes open-sourcing the code will help us a lot to onboard shadowy super coders who can find minute bugs in our code and contribute towards solving them as well as improving the protocol.
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