Thread by @Ace_da_Book

Finding new DeFi investment opportunities on Ethereum is difficult with the dominance of Blue Chip projects and farming explosion on EVM compatible Layer 1s. @warpfinance, an evolving money market, provides an exceptional risk/reward opportunity.

1/10

Let's start with the problem. Warp Finance has been slow to market with its V2 because they were waiting on a security audit from @trailofbits, and made the decision to shift from purely focusing on Uni V3 NFT compatability to incorporating @element_fi LP tokens as collateral.

2

The audit was completed, however, documentation leaves a lot to be desired. Warp has not updated their website docs, Discord server is dead, and everything is either on Twitter or Telegram 🤮

https://twitter.com/warpfinance/status/1408140248698306562

3

Price has suffered as TVL has struggled to get above $2m thanks to aggressive liquidity mining from @AaveAave, long tail assets from @CreamdotFinance, and the aforementioned side chains/alternative L1s grabbing attention. Market cap is $890k and TVL is $1.26m.

4

Now the good stuff. There are encouraging developments coming with V2 that should build TVL significantly as @element_fi depositors are seeking better capital efficiency, and the Uni V3 compatibility will be a differentiator/first mover.

warpfinance.medium.com/the-warp-v2-bl…

5

In addition, there is an upcoming @SnapshotLabs proposal to extend liquidity mining incentives for another year. This will be great for the project because token holders and liquidity depth leave a lot to be desired.

vote.warp.finance/#/votewarp.eth…

6

It will also have a flywheel effect on price as farmers need to buy WARP tokens to LP on Uni V2 and earn rewards. This is one of the rare Pool 2 opportunities where price and APY both appreciate.

7

In terms of price targets...there is ~$50m TVL on @element_fi and I estimate 10% of depositors utilize @warpfinance meaning an instant 5X TVL. The current ratio of mcap/tvl is 0.7, quite low DeFi, and with the liquidity mining this should jump to ~2.

8

Thus, a $10m market cap is fathomable in very short order, corresponding to a $WARP price between $1,700-2,000. #warpspeed

9

When looking for DeFi gems on Ethereum, one must dig deep, follow along with older projects amongst a sea of shiny new protocols, NFTS, and emergent chains, and perform deeper due diligence that what's available upon first glance.

Fin

$WARP Update - Chart is bullish - breaking out of bull flag, vote to extend pool 2 liquidity mining is trending 'yes.' It's going to fly.

vote.warp.finance/#/votewarp.eth…