Perpetual Protocol announced this Friday, February 11, through its Twitter account, its new association with Solv Protocol; in addition to the offer of PERP convertible vouchers.
“In conjunction with Solv Protocol, Perpetual Protocol will issue PERP convertible coupons using $PERP tokens as the pledged asset. By selling convertible coupons through an initial coupon offering (IVO), we will provide investors with an exciting new DeFi investment product that is much lower risk than existing alternatives”, he said in an article published on the platform Medium.
What is a Convertible Bond?
This is a new fundraising solution promoted by Solv Protocol that will allow us to raise funds without selling $PERP tokens. Inspired by the convertible bond concept from the world of traditional finance, Convertible Voucher is a structured product that can be converted into stablecoins or otherwise a fixed amount of tokens at maturity, through the platform without permission from Solv.
“To make this idea a reality, Solv Protocol introduced a standard for fractional NFTs: EIP-3525. With this new version of NFT that improves on the ERC-721 standard, it opens financial property tokenization in a way that has not been possible before!”, he added.
The company explained that the convertible bond concept debuted with Unslashed Finance, which had a huge success with the IVO raising $1 million and selling in 100 minutes.
Other benefits of accessing financing with Convertible Vouchers include the absence of liquidation risk and low financing costs. Therefore, offering convertible coupons is an efficient way to use idle tokens in a project’s treasury and raise the necessary funds for future operations.
How will the convertible voucher offer work?
Perpetual Protocol will lock some of your $PERP tokens into a financial NFT, set the expiration date, face value and bond rank (based on the current $PERP token price). Once the IVO is launched, the PERP Convertible Coupon will be issued and listed on Solv’s IVO market for sale, and investors will be able to purchase a fraction of a PERP Convertible Coupon. Convertible coupon holders can freely split, merge, swap or transfer them on the Solv platform before they expire.
How to join the IVO
The company explained that to participate in their IVO, they will have a whitelisting process where you need to complete a few small tasks by February 16 for a chance to be whitelisted. Major asset holders will choose a total of 100 winners, all of whom will be offered the opportunity to purchase convertible PERP vouchers (minimum investment is $10,000).
“We are looking to raise $5 million, making our IVO the largest increase to date facilitated by Solv Protocol. Sign up for the whitelist from February 11 to 15 (23:59 UTC), visit the PERP Convertible Coupons Offer page and complete the tasks for a chance to be chosen as a winner”, he said.