Review of phase 1
Phase 1 of Warp Finance was about security: The code was audited by Hacken before deployment and we had a rigorous internal testing process in place. Furthermore, we gave users 24 hours to safely deposit before rewards were counted. This gave users enough time to get familiar with Warp Finance and there was no reason to “FOMO”.
In only 24 hours after Warp Finance’s launch users deposited over $5m worth of stablecoins and LP tokens.
Phase 1 has been a success beyond our expectations, and we thank the community for the unbounded support.
At Warp Finance, we envision the creation of new innovative financial products, starting with stablecoin loans for LP tokens. To meet the ambition of this vision, we are interested in supporting more AMM protocols, whose values are aligned with those of the users, beyond Uniswap. At Warp Finance, we share their vision of community inclusion. For this reason, a short-term goal of ours is the integration of Sushiswap.
Obviously, Sushiswap will not be the only integration in the future and we will continue to track the demand for integrating LP tokens of other protocols.
Upgradability of Smart Contracts
Adding future functionalities like the integration of other LP tokens as collateral requires the smart contracts to be “upgradable”. This is often paired with a “time lock” functionality. A time lock is effectively a delay on new code that is being pushed as an upgrade to an existing smart contract.
After speaking with SushiSwap and other AMM platforms, we decided to add upgradeability, with a time lock of 48 hours.
Thus, upgradability will be part of phase 2, allowing for protocol integration scaling.
This means that we will have to deploy a new set of audited smart contracts. We will do this at the same time of activating the borrowing functionality. Hacken will be releasing another audit report before this and overseeing this migration. We will provide a step by step process so that users can very easily migrate to version 2 (v2).
Here is a sneak peak:
It’s important to note that this is no risk to user funds and totally independent of current deposits. All funds are safe as verified by Hacken.
Borrowing Enabled and V2
To continue participating in the team competition, users must continue to keep their funds on the platform until December 16th at 18:00 UTC. Once this time is met, borrowing functionality is enabled in v2, and users can migrate to v2 to commence borrowing and lending.
As we did with initial deposits, we will also have a grace period during which no rewards will be given out. This means that at 18:00 UTC on December 16th the rewards for the deposit- and withdrawal-only phase will stop for the current set of contracts. A 24-hour period will elapse in which there are no rewards for any deposits, however, borrowing will be enabled. Rewards resume after this grace period, meaning on December 17th at 18:00 UTC, rewards will resume, and the commencement of the second phase of the Team Explorer campaign.
Incentivizing successful migrations
Before the migration deadline we will publish a detailed step-by-step guide. Migrating will be simple on our UI — 1 user flow that allows for migrating to v2. There will be 2 transactions prompted to Metamask — withdraw, and deposit to the new contracts.
As a bonus for this inconvenience we will be rewarding successful migrations from v1 to v2. We will be allocating a fixed amount of tokens to this. These tokens will be taken from the “Community Fund” token allocation. We will allocate 0.5% of the supply so that for the majority of depositors it will definitely be considerably more than the gas costs for the additional smart contract interactions.
If you have any questions, concerns or recommendations please join our social channels.
Move onwards with v2!