Warp Finance is dedicated to improving the decentralized finance (DeFi) space for its users. We do so via providing a novel use case for liquidity provisioning (LP) tokens, enabling them to be input as collateral for stablecoin loans.
Now that we have actualized this initial vision, we are expanding our reach, striving to bring the most benefit to our users by creating new utilities. With our first functionality up and running, our new focus is to generate second-order liquidity in the DeFi industry.
We will deliver more Warp Protocol use cases through a variety of different steps:
First, we will build support for additional lending activities on the Warp Protocol.
As an example, this will involve the inclusion of interest bearing assets, such as cDAI and aDAI. Warp Protocol participants will be able to both use these assets as collateral and to receive loans in the form of these assets. Thus, our platform will have greater utility.
We will also bridge yield strategies for stablecoins, enabling users to generate Warp Tokens in the process.
Specifically, this will involve the bridging of yield strategies for various stablecoins such as CRV, subsequently allowing users to earn Warp Tokens for making use of these. This will again deliver additional utility to our users, as well as providing another mechanism for earning our native tokens.
A further change coming to Warp is the expansion of its LP token base.
We will begin accepting different forms of LP tokens. This will include LP tokens generated from Balancer, which we have received a grant for, as well as Curve and potentially other protocols. As a result, users will be able to receive stablecoin loans from LP tokens from more platforms than just Uniswap and Sushiswap, unlocking the potential of these other LP tokens.
Finally, the Warp Protocol will allow for cross-chain interoperability and compatibility with layer 2 assets.
Warp Finance believes that cross-chain interoperability and layer 2 functionality are the future of the blockchain and DeFi industries. Cross-chain interoperability, which we will enable through the Polkadot blockchain’s capacity to bridge to other chains, allows the maximum functionality and flexibility for users. We are presently in the process of applying to a Web 3.0 Foundation grant for this new objective.
Layer 2 assets take the burden off base chains, and therefore allow for far better scalability and higher transaction volumes, and thus we will generate the infrastructure for Warp to accept collateral and issue loans in this layer.
Together, these changes to the Warp Protocol will unlock a multitude of new functions and opportunities for our users, helping them to maximally benefit from the DeFi industry.