Propose $10M Bond Issuance for Lido

[seichris]

Solv Bond Voucher for Lido

Background

This proposal provides a financing solution for Lido based on the recent proposal, “Prepare For Bear Market 2” from the internal team through the issuance of the Bond Voucher powered by Solv Protocol. We believe this solution can address the challenges experienced by Lido around treasury diversification in the following ways:

Low-cost financing to cover expenses and ops
Solv’s robust relationships with top investors to help close the sale fast
Additional $SOLV tokens as LP rewards
What is Solv and the Bond Voucher

Solv Protocol is the first and largest financial NFT marketplace backed by top-tier institutions including Blockchain Capital, Binance Labs, Sfermion, Spartan, IOSG. Its flagship product, Bond Voucher, is Solv’s featured product, which is the first low-cost, one-stop, non-liquidatable solution for DeFi projects to raise funds. Since its February launch, Bond Voucher has successfully raised $1M for Unslashed Finance, $3MM for Perpetual Protocol and $2MM for Strips Finance and $11MM for iZUMi Finance.

How it works: a DAO issues Bond Vouchers (collateralized by its native token) for stablecoins. When the Voucher matures, the DAO then pays back the principal and interest and gets back the collateral.

The Bond Voucher has an embedded European-style call option (convertibility), where on the maturity date, if the underlying asset (usually the native token) rises above a predefined strike price, the holders of the Vouchers can exercise the embedded call option by burning the Bond Voucher for the underlying.

###Proposal

We are seeking to use Bond Voucher to help Lido raise funds for the next 2 years without the need of selling a huge amount of assets. Our team will be in charge of most executive works, including Bond Voucher design, smart contract development, LP incentives, bond-buyers pitching, etc.