Warp: Community Update

Warp Finance
6 min readFeb 8, 2022


Warp Finance continues to push forward with its vision to enable new streams of yield for DeFi users. From inception, Warp has set out to think differently by ‘warping’ the concepts of reality through disruptive innovation. The Warp approach lays the groundwork for other DeFi protocols to enable yield generation for users through the concept of borrowing against liquidity provisioning (LP) tokens.

As a fair launch protocol, Warp was entirely funded by the team and contributions of our community through several campaigns and the official launch event. For this reason, Warp relies heavily on our community’s commitment and is not being directed by other entities such as large venture capital funds.

Moving forward, we want to ensure that interactions are transparent in our communication and roadmap developments. Warp Protocol also understands that communication has been a concern in the past, but moving into the new year, additions have been made to the team to alleviate these concerns, specifically regarding unexpected circumstances that have caused the delays in the launch of updates and progression. As an example, the Cream Finance hack at the end of 2021 revealed issues for the entire DeFi landscape which had caused us to delay the launch of WarpV2. We adjusted our code and took extra measures to ensure the security of our protocol and are finalizing our new audit in preparation for Warp V2’s launch next month. The goal is to create an environment where the community can transparently keep up with the amazing work and development that is being put into Warp.

*Update on Warp Vote: Lending and Borrowing of Bonds*

With the recent vote, Warp will be exploring the potential to offer WARP-ETH LP token bonding on Olympus Pro. This does not represent a final proposal for the deployment of contracts but is a starting point for the conversation. This step would allow Warp to boost its liquidity and provide users with an additional means of earning veWARP, which is acquired after users stake their Warp tokens. Holders of the pair that will be announced soon will be able to bond these LP tokens for veWARP at a discounted price. While users can benefit from exchanging their LP tokens, Warp will own this liquidity from the bonded veWARP pair. As more liquidity is accumulated, the liquidity pool can support larger trades, guarantee price stability, and protect against massive liquidity exits leading to healthy price action.

Hence Warp would like to reassure its users that the liquidity will be Warp owned, and the pressure of a massive sell-off will not be present. This is because the bonding mechanism is positioned to benefit Warp and its LPs in the long term, increasing Warp’s protocol-owned liquidity (POL) while making veWARP tokens available to even more people ahead of the release of the strategies in our pipeline. Also, veWarp comes with its own lockup period and users will be incentivized with staking rewards for providing liquidity to the bonding mechanism.

Warp Organization Updates:

Our team is increasing its focus on promoting our community growth as well as building innovative lending solutions. Hence, some crucial community-focused roles have been filled in the team, including Bam, who will now be the Project Lead to guide operations and to collaborate with Jana on the business development side. Warp has, as of this month, gained access to Advanced Blockchain Marketing resources as well, so communications will be renewed and expected weekly. Additionally, we have added two Frontend developers and two backend developers. Our team is growing, and we are excited to increase our efforts in communication and deployment.

Welcome Bam!

“Hi Warp Community, I’m Bam, the new Project Lead for Warp. I join you as a former Management Consultant focused on fintech, banking, and blockchain products, and as a software developer before that. I’ve been very interested in money markets and DeFi for about 3 years now because the many flaws in the traditional financial world leave ample opportunity for the sculpting of a more efficient and fair financial economy. Warp provides a unique opportunity to contribute to that by laying a foundation for a more customizable and higher utility DeFi future. I will help to execute the Warp vision by strengthening its competitive edge in the DeFi space and ensuring best practices are held in our development, V2 launch, and beyond.

Our revamped team will work diligently to alleviate the community concerns and to institute new traditions, marked by increased community engagement and open communication with our strong supporters. I look forward to embarking on this journey with you all — Thank you! ” — Bam, Project Lead — @bam12321 on telegram.

Blacksmith Update, Warp V2:

With the launch of the V2, Warp is once again unlocking and disrupting the space through novel features that are not currently available anywhere else in this space. The frustration of the Warp community members due to the delay of the launch of the Blacksmith update is felt by the team. Warp now aims to launch V2 in early March 2022. Our audit is underway to ensure security is of the highest quality and includes clear timelines for completion. Warp will continue growing as an optimized lending protocol and will further unlock yield farming opportunities.

Refresher on what features V2 brings

The Blacksmith Upgrade is an important step forward in our mission to improve lending in the DeFi space. Warp is also upgrading existing features to give users optimized yields in their interaction with the protocol. Here are some features to expect:

  • Chisel: The Warp TVL vault that will ensure the saturation of liquidity within the ecosystem. Chisel will act as a pool of liquidity powering the lending pairs on Warp and liquidity will be directed to each pair based on voting outcomes using veWarp.
  • Isolated lending pairs solution for assets not currently serviced by other lending protocols: Users will be able to create isolated lending pairs for more niche assets, and Warp will deploy pools that will enable borrowing collateralizing assets. In other words, rather than users having to sell tokens at a discount, they can borrow against it.
  • Integration of Element Finance Principal Tokens: This will enable the utility of PTs from Element Finance, which hold significant yield-bearing potential, yet are underserved by other lending protocols. In the customized pools, users can borrow stablecoins using Element Finance’s assets as collateral. This integration will create a competing market force against selling the principal tokens, which means that users can borrow against the PTs rather than selling at discount prices. This will benefit both the primary and secondary participants who can use veWARP to borrow against their PT, to buy more PT at discount, creating leverage in the ecosystem.
  • Warp is introducing pool-based lending pairs to increase liquidity in pools.
  • With the V2, users will be able to use L2 assets as collateral on L1 when LPing on Warp.

The Future of Warp

Warp is focused on taking steps towards achieving its mission, which is to improve the DeFi lending space. With the launch of Warp V2, the Blacksmith Upgrade, Warp aims to facilitate an optimized crypto lending and borrowing landscape⁠ by releasing our isolated lending pools, vaults, and other strategies in the pipeline. Warp is dedicated to delivering essential governance and profit-sharing capabilities to its community members by innovating the lending space. The ramp-up of our development capabilities and introduction of critical people to the team will help us carry out these goals as effectively as possible. Prepare for Warp V2.

To follow the Warp Protocol as we carry out these new endeavours, check out our socials:

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Warp Finance

DeFi’s first isolated lending protocol that optimizes yield-bearing receipt assets, and much more!