The Warp token / $WARP
The Warp Protocol
The Warp Protocol’s primary objective is to create a novel use case for unused Liquidity Provider (LP) tokens by allowing them to be used as collateral for borrowing.
Users will be able to deposit LP tokens onto the platform and receive stablecoin loans in exchange, while their LP tokens continue to earn from Uniswap’s rewards.
By lending LP tokens compared to other assets, users are able to continue earning trade fees from Uniswap, reducing the effective interest rate paid.
At launch, users seeking loans will be able to deposit the LP tokens generated from the following four Uniswap pairs (WBTC- ETH), (ETH-USDC), (ETH-USDT), (ETH-DAI).
These pairs will be deposited at 150% over-collateralization. In other words, the user deposits at least 1.5 times the value of money they will borrow.
These borrowers then receive a loan of DAI, USDC, or USDT at a specific interest rate, which will fluctuate based on the availability of the respective stablecoin within the liquidity pool. All while still earning the 0.3% from Uniswap per trade made in the respective liquidity pool.
Once the loan has been repaid, users may withdraw their collateral.
Lenders will be able to supply DAI, USDC and USDT on Warp Finance.
In return, suppliers will receive either wDAI, wUSDC or wUSDT, which are interest-earning tokens that indicate a deposit into Warp.
On withdrawal, suppliers will receive back the stablecoin they initially deposited plus the interest earned.
Platform Reserves and Development
The protocol collects 5% of interest accrued and stores the funds in a treasury wallet. At first, these funds will be used as a reserve and for continuous development of the platform. Once governance is live, the community will be able to decide on the usage of these funds.
WARP Fair Launch
No $WARP has been sold to investors. The tokens can only be earned by active participation and use of the Warp platform. To bootstrap the ecosystem, various short-term campaigns were run at launch to encourage active participation.
The Warp token ($WARP) is the governance token of the Warp ecosystem and further used for incentive mechanisms. Once 50% of all the tokens have been distributed governance will be enabled.
Users must have a threshold amount of $WARP to submit a proposal. For instance, in order to provide further utility, token holders could vote to allow for transaction fees to be distributed to themselves.
A user’s wallet address is queried for the number of WARP it contains. One token is equivalent to one vote in the process of approving proposals.
Audited and Verified
Warp Finance maintains a robust and resilient platform, with auditors regularly monitoring its contracts for security and potential attack vectors.
WARP contact information
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The content on this site is for informational and educational purposes only and is not intended as a substitute for professional financial advice. As always, DYOR/Do Your Own Research.