What is an RFV?

RFV is the acronym for Risk-Free Value which is held in a separate wallet after being collected in the treasury wallet in Solar’s SAP system. The Solar Risk Free Value plays a critical role in the Solar Autostaking Protocol.

The RFV is an innovation from Solar. It is a wallet that collects funds to support and stabilise the Liquidity pool. This is particularly useful in the event of a sharp sell-off that might drain a liquidity pool. This can cause problems because liquidity is what allows the buying and selling of the Solar token. The RFV provides a liquidity reserve and prevents this from happening during a sharp sell-off.