Warp Finance’s Upcoming Use Cases

The Future of Warp

Warp Finance is about to release its V2, the Blacksmith update, which will enable user-creation of isolated lending pairs, which Warp will optimize to support the lending and borrowing between niche assets and more traditional assets. This will provide the holders of niche assets with previously unavailable opportunities to leverage these tokens.

Introducing Warp V2: Blacksmith

The Warp development team has continued to innovate with the goal of freeing the potential of other illiquid yield generating assets. Most recently, we accomplished this by introducing Warp V2, the Blacksmith update: an isolated lending pair solution for assets not currently serviced by other lending protocols.

  • Yield Token (YT) = future yield expectation (accruing value over time)
  • $LUSD — $112 million
  • $stETH — $4.8 billion

Future Milestones

The Warp team has several plans and is working to develop a number of additional utilities and expansions. The ultimate aim of Warp V2 is to pioneer the unlocking of capital efficiency.

  • The creation of pool-based lending pairs
  • The ability for users to use L2 assets as collateral on L1

Key Takeaways

Warp V2 will instantly join the Element Finance ecosystem with $163M TVL. The market balancing and leverage capabilities of Warp V2 could quickly bolster that TVL to absorb more of the $13 billion-plus TAM. Collected fees will be distributed to veWARP stakers and should have a positive impact on Warp token holders. This is not to even mention the additional value that can flow through our protocol thanks to the creation of further user-generated lending pairs on Warp. Overall, we believe the Blacksmith update will drive significant value into the Warp protocol while also providing enhanced utility and new lending opportunities for niche asset holders.



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