Warp V2 Market Positioning & Test Launch: Introducing Novel DeFi Lending Cases

Warp Finance
4 min readJul 19, 2021

With V2, Warp will become a unique lending platform for assets with limited options for collateralization. Warp V2 will create new opportunities for users and protocols alike, expanding the crypto-lending space.

At Warp Finance, optimizing DeFi lending is our paramount concern. With V2, we will implement a variety of new tools to make borrowing and lending digital assets more valuable, flexible, and useful than ever before.

Warp V2’s Unique Market Niche:

In its effort to improve the space, Warp V2 has come to the realization that DeFi doesn’t need more of the same use cases deployed in slightly different iterations over new platforms; instead, what the market really requires is products that resolve unmet needs.

Warp V2 aims to accomplish precisely this. We are not attempting to compete head-to-head with existing crypto lending platforms — rather, we are working to facilitate new utility in the crypto lending space.

For instance, our V2 test launch introduces isolated lending pools that provide previously unavailable token pairings for users to borrow and lend between. This creates a borrowing market for digital assets that do not have other options available. We provide a benefit to the up-and-coming DeFi platforms that these tokens belong to, as well as their users, by creating essential crypto lending use cases where they did not previously exist.

Our Upcoming Test Launch of These Features:

After months of intensive market research and thorough rigorous development work, we are eager to announce the upcoming test launch of Warp V2, which we aim to deliver in a few weeks.

With this test launch, we will deploy initial V2 platform features. We are kicking off our isolated lending pools with a carefully selected pair of digital assets that have no pre-existing lending options.

These isolated lending pools involve risk isolation from the broader platform in which they will be available, unlike most other crypto lending options. Users do not take on the overall risk of the protocol when they choose to participate in a pool and can take on just the level of risk they are comfortable with. This means that more risk-tolerant users can seek out higher-risk, higher-reward opportunities, whereas more risk-averse users can opt-in favor of stability.

Moreover, a crucial feature of our isolated lending pools is that we will create an opportunity for the lending on digital asset pairings that otherwise would not have this option for collateralization available. This includes receipt tokens, tokens of up-and-coming protocols, and other unique token pairs. All parties involved will be able to experience benefits from this novel offering. First, DeFi users will have a new means of generating yield through capital efficiency optimisation, and token holders will experience improved transactability for their digital assets. Further, the protocols these tokens are native to will benefit from this increased utility of their tokens to users. Our isolated lending pools will also open up new opportunities to DeFi strategy creators. For instance, these individuals can benefit from using receipt tokens in vaults and other methodologies, and would no longer need to be participating in a given platform to get its receipt tokens, simply obtaining them in a loan through Warp.

In our test launch, we are deploying our first isolated lending pool for unique digital asset pairings — so stay tuned for more updates on the details of this pair.

Opening Our Platform to Other Protocols & Their Tokens to Reward Users:

As we expand upon our V2 offering, we will invite other protocols to apply to whitelist their receipt tokens as collateral for Warp’s stablecoin loans, designating their own native tokens to be used as rewards.

If a platform’s receipt token is accepted as collateral on Warp, users can now leverage it by receiving a stablecoin loan from it. This enables them to derive additional value from the token from use cases such as yield farming. In this manner, Warp creates another utility for projects’ receipt tokens, incentivizing users to participate in their platforms. Users similarly benefit and will experience both improved capital efficiency as well as additional earnings in the form of native token rewards.

We hope you are as excited as we are about these and the many other benefits that Warp V2 aims to bring to the DeFi lending space. In the coming days and weeks, we will continue to announce more details of our novel offerings, helping us resolve existing limitations in the field and deliver improved value and experiences to users.

We will be announcing our first integration partner soon — to keep up-to-date with the Warp Protocol, make sure to follow our socials:

Twitter | Telegram | Discord | Website| Reddit| Github



Warp Finance

DeFi’s first isolated lending protocol that optimizes yield-bearing receipt assets, and much more!