Further Clarification: Warp Finance Reimburses Users with its Portal IOU Token
In order to compensate its users for any losses due to the previous flash loan Exploit on the platform, Warp Finance has distributed a new Portal IOU token. This token will be awarded to users who deposited stablecoin funds that have not been fully recovered, and will be exchangeable for Warp Tokens immediately upon TGE, with additional capacity for receiving a growing amount of Warp tokens depending on the redemption date of the IOU.
Thus, the instrument will allow users to get tokens early, and with a small initial circulating supply, the tokens received can be substantial.
Who Will Receive Portal IOU Tokens, and How Can You Access Them?
Warp’s Portal IOU token will be issued to Warp users who deposited stablecoins into our platform, and then lost their funds due to the flash loan exploit. We will issue Portal IOU tokens to every affected user. While the majority of lost funds have been recovered, the Portal IOU tokens serve as an additional compensation for any losses and inconveniences caused. The total supply of the Portal IOU token will be 7,816,976, so that 1 Portal IOU token represents 0.001449697206 Warp Token. This means that, in total, the supply of Portal IOU tokens will be worth 7.5% of total supply of Warp tokens.
We will airdrop these Portal IOU tokens to users proportional to the amount of W-USDC and W-DAI held at the time of the snapshot. The snapshot will be the same as we used during the LP token distribution, here on GitHub.
How the Portal IOU Tokens Work:
The Portal IOU token will be backed by 7.5% of the total Warp Token supply, with 2.5% being contributed from the Warp Team allocation, 0.5% allocated from the community fund originally for rewarding migration participants, 2.75% from the team competition, and 1.75% baseline rewards.
These tokens will be redeemable for an equivalent amount of Warp Tokens. Redemption of the Portal IOU token will burn the IOU token. Alternatively, users will be able to freely trade the Portal IOU Tokens on Uniswap, where it can maintain its redeemable value. Upon TGE, we will list the Warp Token on Uniswap at the implied Warp token price derivative from the Portal IOU.
The IOU functions in the following mechanism:
1. A user must navigate to the Warp.Finance UI with the wallet that contains their IOU tokens.
2. The user then must “lock” their IOUs for maximum rewards. The IOU becomes locked in the smart contract after this transaction is executed, and can no longer be withdrawn. Meaning, they can no longer sell IOUs that have been locked. At this point, the user has 2 options. Either, they can leave their IOUs locked to make them eligible for the WARP tokens that other users have forfeited by not waiting for full vesting, or they can click “Claim.”
3. The user then clicks Claim to claim their WARP Tokens.
As a result long term supporters will earn a larger share of Warp from this redemption program. For further clarification, if a user wants to be eligible for the shares that users have forfeited they MUST lock their IOU tokens in Warp Finance.
How the Vesting Period Works:
There will be a six-month vesting period for Warp’s IOU Tokens. Upon TGE, users are able to obtain 1/6th of their proportional share of Warp tokens.
From this point onwards, users are able to redeem their Portal IOU tokens for Warp Tokens before the end of this vesting period. If users wait until the vesting period ends to redeem their Portal IOU tokens for Warp Tokens, the users will receive their full proportional share of the tokens allocated to the Portal IOU tokens.
However, if users redeem partway through the vesting period, they will redeem the tokens that have vested thus far, but forfeit their remaining tokens.
As such, users who wait until the end of the vesting period will be eligible to obtain the forfeited share of tokens of early redeemers. Meaning, the remaining users who redeem later obtain the tokens forfeited by other users for vesting early.
Overall, our Portal IOU token is designed to assure users that Warp Finance will always put them first, protecting their money and their best interests above all else.
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