The First Bond Voucher Financing in DeFi: Strips & Solv
Strips is launching the STRP Bond Voucher IVO on Solv Protocol on 12th April at 1PM UTC. Link to the sale here. This is the first case of debt financing in the DeFi world. The capital raised will be used to provide liquidity to our platform, which facilitates increased volume, trading revenue, and returns to STRP token stakers (see our STRP LP flywheel breakdown here).
Similar to how a factory uses debt financing to buy equipment to expand operations, we’re using this capital to add trading capacity (what liquidity facilitates) that will allow us to continue to scale operations.
The Bond Voucher is a convertible fixed yield bond with an embedded call option. This debt financing allows investors to receive fixed returns while also participating in price appreciation of STRP token.
We’re excited to announce the following terms for the offering:
Investors in the offering will receive a 13% annualised return in USDC, STRP, and Solv Vouchers over 90 days on their capital if the price of STRP is below $3.
If STRP token is higher than $3 then the embedded call is auto-exercised and investors receive 8% fixed return (per the payouts in the above table that are paid out immediately) and reap the returns from buying STRP at $3, no matter how high the token price goes.
The Bond Voucher is not subject to any liquidation in the interim, and return of principle and capital returns are backed by Strips treasury.
The debt offering will be live on Solv IVO platform (https://app.solv.finance/ivo/convertible) on April 12th 2022 at 1PM UTC! Please join our Discord and reach out with any questions.
The information presented here is meant for educational purposes, and is not investment advice. Any past performance, projection, forecast or simulation of results does not necessarily indicate any investment’s future or likely performance. The information and publications are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by STRIPS Finance.