Warp has Integrated Synthetix’s sUSD as a Lending Asset

The Warp Protocol has now successfully integrated Synthetix’s sUSD stablecoin as a lending asset. Warp users will be able to receive loans in the form of sUSD using liquidity provisioning (LP) tokens as collateral. The addition of this stablecoin provides more flexibility to Warp users, offering another option for loans from the Warp Platform.

sUSD is an increasingly popular stablecoin with a multitude of strengths and utilities.

Synthetix (https://synthetix.io/) is a decentralized synthetic asset issuance protocol built on Ethereum with over 1.7 billion in total value locked (TVL). This company collateralizes synthetic assets (Synths) with their Synthetix Token Network (SNX). When SNX is staked as collateral (at a 750% overcollateralization) using Mintr, a decentralized application for interacting with the Synthetix smart contracts, Synths are minted. sUSD is a type of Synth that can be created in this manner.

sUSD offers increased utility over many other stablecoins. These tokens will have a native use case in the Synthetix system, including that traders can sell sUSD for ETH or any of the dozens of Synths currently available. These traders will have greater leverage opportunities in these trades via Synthetix than they would on other protocols. Furthermore, while sUSD is price-pegged in a similar manner to other stablecoins, it is better equipped than most to absorb the large issuance resulting from traders generating leverage; when a trader converts from sUSD to ETH or another Synth, the sUSD is burned, helping the price peg to grow stronger, instead of weakening it.

The addition of sUSD as a lending asset on Warp thus provides our users with increased functionality and value from our loans.

sUSD joins the existing offering of stablecoins that Warp users can receive loans in, using LP tokens as collateral. We have incorporated this stablecoin into our protocol as it is highly promising, and provides our users with additional options and opportunities for utilizing our loans.

As it has been since the project’s inception, the primary objective of Warp is to optimally serve and benefit its users, and the strategic addition of new stablecoins to our platform like sUSD helps us uphold this goal.

To keep up-to-date with the Warp Protocol, make sure to follow our socials:
Twitter | Telegram | Discord | Website| Reddit| Github

An optimized lending solution powering a liquidity engine.