The Warp V2 Blacksmith Upgrade Test Launch: Element Finance Assets as New Borrowing Collateral

  • crvTricrypto — Element Finance principal token-USDC
  • crvLUSD — Element Finance principal token-USDC
  • crvstETH — Element Finance principal token-USDC
  • crvTricrypto principal token/crvTricrypto Balancer Pool Token — USDC
  • crvLUSD principal token/crvLUSD Balancer Pool token — USDC
  • crvStETH/crvSTETH Balancer Pool token — ETH
  1. Growing Savings: Users are able to purchase PTs on Element Finance at a discount, with a specific underlying asset, term length, and annual percentage rate (APR). The discount is created from selling the PTs, which are locked until maturity, at a discount. PTs then provide users with a fixed rate, and can be redeemed for the initial investment at term length.
  2. Yield Seeking: By selling their PTs, users are, for example, able to free their principal while keeping their yield position. This increases capital efficiency and allows users to even further leverage their yield. Additional earnings can be made by liquidity provisioning on PTs.
  3. Trading: Users can buy and sell PTs through Element Finance pools, which are the markets on Element Finance’s platform, in order to seek a profit.
  • The ability of users to create their own lending pairs
  • The creation of pool-based lending pairs
  • The ability for users to use L2 assets as collateral on L1

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