Proposed Force Strategy Using Warp

Hey everyone,

I thought I’d propose a potential liquidity strategy that could be implemented into the Force App.

(Right click and open image in a new tab if it’s too difficult to read :eyes: )

So the idea is, deposit LP tokens (be them SLP or UNIv2) into Warp Finance for a collateralized loan of 66% in stablecoin. Use the stablecoin in a Curve pool (yearn or 3CRV, whichever makes more sense) and autocompound interest into the position. While the loan is taken out through Warp, Warp sends the LP tokens being collateralized to another protocol such as Sushi so it can earn xSushi tokens while staking. Warp pays borrowers and lenders in $WARP tokens for the time being, which could be liquidated and reinserted back into the LP position.

If Warp runs out of stablecoin liquidity, we could potentially use Aave instead (which would result in less yield, but hey, it’s a backup plan.)

But in the end you’re earning yield off of LP tokens fees, Curve LP token fees, CRV, xSushi, WARP and xForce tokens given there’s enough stablecoin liquidity.

This is my first foray into ideating things like this. Feel free to give feedback. Rip my idea up or add to it. Open to all sentiments :slight_smile:

Regards,

Ingalandia

3 Likes

Really cool! Thanks for the image. Helps to visualize the strategy.

2 Likes

Ability to earn from LP token is lucrative…

What about the tokens I bought before?