Warp: Community Update

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

  • 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.

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