How to Buy Bond Vouchers: Step-by-Step Instructions for Investors
In this article we’ll give you a step-by-step guide to buying the Bond Voucher, on the Solv dApp.
Laying the groundwork
Buying a Bond Voucher is easy. Let’s start off with the part most of you probably already know: launching the Solv dApp and locating the “IVO — Bond Voucher” page.
1. Launch the Solv dApp
2. Connect your wallet
3. Choose a Network (Strips IVO will be on Arbitrum)
4. Click on IVO tab
5. Click on Bond
On STRP Bond Voucher’s specs window, you’ll find a set of numbers, each under a label: Total, Remaining, Progress and APR. Here’s what they mean:
Total: The total value of the Bond Voucher (in USDT)
Remaining: The amount purchasable (in USDT)
Progress: The percentage sold for this Bond Voucher
Conversion Price: The price at which the Voucher will convert to $STRP at maturity.
APR: Expected annual percentage rate when the token’s market price at maturity is below the conversion price.
Example: With an 5% APR and hypothetical $2,000,000 USDT investment, in 3 months you’ll receive $2,025,000 in USDT.
Now, let’s go over a few more terms you’ll see on “detail” page when you open your Voucher.
Participating Condition will tell you whether a whitelisting rule applies to this sale
Maturity Date is the date on which the Bond Voucher will mature and on which the face value can be redeemed or the embedded call option can be exercised.
Face Value is the amount the Bond Voucher can be redeemed for at maturity, denominated in stablecoin.
Total Collateral is amount of tokens the issuing DAO has collateralized to back this Bond Voucher.
Conversion price is the specified unit price where the underlying asset can be purchased at maturity. Note that this means investors can only exercise the option if the price of the underlying asset is greater than or equal to the conversion price at maturity.
Collateral Ratio compares the value of the collateral to the bond value.
Promise To Repay is the repayment and redemption statement signed by the issue promising the repayment of the Voucher.
How to buy, inspect, add your Voucher to the wallet, and claim your payment!
- Buy it!
After making sure you are qualified (check “Participating Condition” for this), enter the amount of USDT you want to invest in the “Purchase Value” bar, and then click on “Buy”. Make sure the amount you entered adheres to the Purchase Limit for this particular Bond Voucher.
Congratulations, you’re officially an owner of the Bond Voucher!
2. Inspect your Bond Voucher
If the purchase is successful, click on “Check” to inspect the recently purchased Bond Voucher on My Asset page.
Alternatively, you can view your newly purchased Bond Voucher by clicking on “Account” on the top of the page — My Asset — Bond Vouchers.
3. Add the Voucher to the Metamask wallet
Adding a Bond Voucher to the Metamask wallet is easy. First locate your Bond Voucher, and then click on “Add to Metamask”
The Bond Voucher you have added to the wallet should be visible in the list of your assets.
4. Claiming your fixed income
When the Bond Voucher is due, claim your fixed income in USDT or in native tokens by clicking on “Claim” on the Voucher’s detail page.
Note: the “trading” feature for the Bond Voucher will be available soon.
We hope this guide was helpful for you! Investing with Bond Voucher is rewarding as it is fun to use, and that’s why we’re doing our best to make sure this terrific tool is accessible to you :)
About Solv Protocol
Solv Protocol is a decentralized marketplace for minting, trading and managing NFTs that represent financial rights. Solv has offered Vesting Voucher, an allocation management fundraising tool, Convertible Voucher, a structured product allowing DAOs to leverage native tokens, and Bond Voucher, the first market-tested debt instrument in DeFi that helps DAOs tap into the debt capital markets.
About Strips Finance
Strips Finance is an interest rate derivatives platform. Strips’s aim is to build an open platform to trade, create and invest in fixed interest products. The first product is Strips Exchange, an interest rate derivatives exchange.