Earlier this year, Solvo raised a $3.5 million seed round from Index Ventures with CoinFund and FJ Labs also participating. Since then, the company has put together a small team of 10 people and started working on its iOS app.
The main thesis behind Solvo is that cryptocurrencies are still too complex. If you want to buy crypto assets, chances are you don’t know where to start because there are thousands of different tokens. While you may have heard about DeFi (decentralized finance) and the ability to generate yield, accessing those products is even more complicated.
When Solvo releases its app in October, users will be able to buy and sell tokens (obviously). But Solvo has picked 10 cryptocurrencies so that you don’t get lost in an endless list. You can also deposit and withdraw tokens from Solvo.
The startup is also taking advantage of staking or DeFi products that generate yield by contributing to liquidity pools. This way, Solvo customers earn interest when they move their crypto assets to what the company calls “Vaults”. For instance, the startup plans to offer Solana and Cardano Vaults.
Hiding the complexity is an interesting strategy as Solvo can take a cut of earnings from Vaults. As long as customers still earn some interest, the product is working as expected.
Finally, Solvo also lets you invest in Bundles. It lets you invest in multiple projects and tokens in a single transaction. Essentially, it works like those popular tokenized baskets, such as the DeFi Pulse Index or the Metaverse Index.
“Investing with Solvo will be simple, easy and understandable – three words not associated with crypto. Solvo is meeting a clear need for investors today, offering products that are focused on high quality assets, that provide diverse exposure and reduced risk as well as an attractive yield. It is for all the investors who want to use crypto to diversify their investments and want an easy way to do that,” co-founder and CEO Ayelen Denovitzer said in a statement.
In many ways, Coinbase originally positioned itself as the easiest way to get started with crypto. But the company has launched many different products over the years, including derivatives and support for 225 cryptocurrencies. Let’s see if Solvo can fill that gap in the market.