Solvent Protocol - Financializing NFTs on Solana

Solvent is a protocol to convert the NFTs into a fixed number of fungible tokens of that collection.

• These fungible tokens a.k.a. droplets, are tradable on Serum orderbooks and AMMs across Solana
• 1 NFT --> 100 droplets --> 1 NFT
• Droplets are unique to each collection, and every NFT mints the same number of droplets of that collection.
• Droplets enables instant liquidity, and DeFi applications such as LPing, lending, and long/shorts to illiquid NFTs.
• Read our litepaper here.
• NFT lockers is a functionality to mint depositor some droplets as a debt but locking that NFT so that it is not available in the open bucket. User can claim their locked NFTs by unlocking them and paying back the droplets debt + some interest within a duration. Failure to unlock the NFT within the duration specified results in locked NFT getting liquidated.

Solvent Protocol smart contracts are audited by the amazing team at Otter Sec. Check out the audit report here.

Solvent contracts are also using Sec3's premium auto-auditor for vulnerability checks and scans. Check out the report here.

Protocol functionality

These are the following functionality that the users can perform with the protocol:

• Create a bucket on Solvent for an NFT collection
• Mint 100 droplets by depositing the NFT into its suitable bucket
• Burn 100 droplets to claim an NFT from the bucket

NFT Lockers

NFT lockers are vaults that users can use to lock their NFT for a certain duration D into Solvent and unlock instant liquidity for them. Within that duration, the users can pay back the debt and interest and can claim their NFT back. Users can select any duration up to a certain duration limit Dmax. The duration can be mentioned in the number of hours. If the users default to make the payment of debt and interest, they’re liquidated. If a user unlocks the NFT before they’re about to be liquidated, they only pay interest for the duration for which the NFT was locked. The interest that is paid is accumulated in an interest vault account.

The formula for droplets minted for an NFT that gets locked is shown as below:

The formula for the interest that the user ends up paying for unlocking the NFT is shown as below:

Function calls

Function	Description
create_bucket	Create a bucket for an NFT collection on Solvent
deposit_nft	Deposit an NFT into a bucket to mint 100 droplets
redeem_nft	Burn 100 droplets to claim the NFT from the bucket
lock_nft	Lock an NFT for a duration to mint droplets as a debt
unlock_nft	Unlock a locked NFT by paying back the droplets debt + interest
liquidate_locker	Liquidate a locked NFT that is overdue unlocking by the depositor

State structs

BucketStates

BucketStateV3

PDA to store the details of an NFT collection details on-chain. Represents a unique bucket for an NFT collection. What's new:

• The verification details such as NFT symbol in the metadata + list of verified creators is now stored in a separate enum named CollectionInfo. CollectionInfo also accounts for cases where the NFT collection can be represented using a unique collectionMint as per Metaplex v1.1 metadata standard.
• Additional variables required for NFT lockers

Fields	Description	Type
bump	The canonical bump for the BucketStateV3 PDA	u8
droplet_mint	The public key address of the droplet token for the NFT collection	Pubkey
collection_info	The enum value representing verification details of the NFT collection	CollectionInfo
is_lockers_enabled	A boolean variable representing whether NFT lockers feature is enabled for a bucket of an NFT collection. False by default. Can only be updated by Solvent team. Decentralized in the future.	bool
max_locker_duration	The max duration in seconds for which an NFT can be locked into the locker of this bucket	u64
num_nfts_in_bucket	The number of NFTs deposited into the bucket	u16
num_nfts_in_locker	The number of NFTs locked into a locker of the bucket	u16
interest_scaler	The % value multiplier to scale the interest payable for NFT lockers functionality. Range: (0,100]	u8

DepositState

PDA to store the details of an NFT that is deposited into a bucket. Every NFT deposited into Solvent will now have its own on-chain state representing the deposit transaction.

Fields	Description	Type
bump	The canonical bump for the DepositState PDA	u8
droplet_mint	The public key address of the droplet token for the NFT collection	Pubkey
nft_mint	The public key address of the NFT asset deposited into the bucket	String

LockerState

PDA to store the details of an NFT that is locked into a locker of the bucket. Every NFT locked into lockers of the bucket will have its own on-chain state representing the locked transaction.

Fields	Description	Type
droplet_mint	The public key address of the droplet token for the NFT collection	Pubkey
depositor	The public key address of the original user who has locked the NFT asset	Pubkey
nft_mint	The public key address of the NFT asset deposited into the bucket	String
creation_timestamp	The unix timestamp when the NFT got locked into the locker	u64
duration	The duration in seconds for which the NFT is locked into the locker	u64
principal_amount	The amount of droplets minted to the user as a debt for locking the NFT	u64
max_interest_payable	The maximum interest payable by the depositor while unlocking the NFT	u64

Queries

Thank you for your interest in Solvent smart-contracts! Please email us at: mmdhrumil@solventprotocol.com for queries and more.

Thanks ❤️