Warp Finance is Partnering with Archer DAO for Non-compliant Loan Liquidation

Warp Finance
2 min readFeb 24, 2021

Warp Finance is pleased to announce that it has partnered with Archer DAO (https://www.archerdao.io/). This partnership will facilitate the liquidation of non-compliant loans from the Warp Protocol utilizing the Archer DAO Protocol, ensuring that these loans do not have negative impacts on the overall Warp ecosystem.

Archer DAO is a protocol enabling miners and block producers to earn additional revenue through various means, including loan liquidation.

This Ethereum-based protocol introduces a valuable new revenue stream to these blockchain participants by executing profitable on-chain opportunities in a sustainable manner. While miners have traditionally been able to receive revenue from block rewards, this value is not guaranteed. It was first cut in 2016, and in August 2020, Ethereum community members proposed a 75% reduction in these rewards. In contrast, the transaction fees earned by miners have been increasing, generating more value than block production.

Archer DAO steps in to help resolve this issue by using on-chain incentive mechanisms to boost miner revenue. This protocol hosts various value-generating opportunities including loan liquidations, decentralized exchange (DEX) arbitrage, and other no- to low-risk value-generating processes. By additionally incentivizing miner and block producer participation, Archer DAO strengthens the overall Ethereum ecosystem and provides a platform for other protocols needing loan liquidation, arbitrage, and other services.

Warp has established a partnership with Archer DAO for the liquidation of non-compliant loans on its platform.

The primary objective of the Warp Protocol is to provide stablecoin loans that are collateralized by LP tokens. Like more traditional loans, these loans will involve a repayment process incorporating the additional repayment of interest. When these predetermined, mutually agreed-upon loan terms are not met, the loan becomes non-compliant and will be liquidated from the Warp Protocol to prevent losses and ensure the unencumbered flow of lending on the platform.

Archer DAO will use its platform to liquidate these non-compliant loans for Warp. Through Archer DAO, miners will be able to generate value by liquidating Warp’s non-compliant loans, meaning there is a financial incentive for this process.

As a result of this partnership, non-compliant loans will be liquidated quickly and easily from the Warp Protocol. Thus, Warp will protect against losses due to these non-compliant loans, and will be able to continue to perform its lending process, unhindered.

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