Weft Recap

Hello everyone and welcome to another AMA session

Hello, SatoshiClubbers! No time no-see you all. Always a pleasure to moderate AMAs for you. Let’s give a warm welcome to @yetinin and @atoumbre_weft. Thanks for joining us for this interesting AMA session, welcome to your new home 😊

@yetinin @atoumbre_weft welcome to Satoshi Club

🙏

Many Thanks, happy to be here

Thanks happy to be here

How are you guys? How's going on?

Hope you guys are doing fine and that you have your fingers ready :p

We are fine and ready

Let's begin with a short introduction about Weft Project

In a nut shell, Weft is a lending dApp deployed on Radix. With 5 lending pools and 20+ asset that can be used as collateral

Being deployed on Radix offer advantages that none other L1 offer. But you need to experience the Wallet and the dApp to truly feel the difference.

What kind of assets can we use?

Radix native token XRD plus Bridged USDC, USDT, BTC and ETH can be lend and borrow. Weft make a difference between lending assets and Collaterals. So in addition to assets that can be lent out, you can use any Radix liquid staked Unit as collateral , plus 10 BLUESHIP PROJECT TOKEN AND 2 BLUESHIP MEME COINS 🙂

As well, let us know a little bit about you and your experience with crypto @yetinin @atoumbre_weft

We also want to know you :)

Than you for the information, interesting and innovative tools

I'm from an electronic engineering and statistics background and @yetinin as 15+ experience in backend development. We started our building on radix since Early 2023 with V1 of Weft lending dApp. We just release the version 2.

Great background, congratulations on that 👏🏼

Thanks 🙂

Are you guys ready to jump into community questions?

Yes we are !

Q1 from Telegram user @Vicsion01 I read from the Weft’s document that NFTs can be listed as collateral. Given the unique and volatile nature of NFTs, how does Weft assess the value of NFTs used as collateral, and what measures are in place to ensure the stability and security of loans backed by these non-fungible assets?

We are glad to know you guys

Interesting Question. Listed NFT are only not that wrapped underlying fungible resource. NFT like Staking Receipt, Concentrated liquidity pool LP Token ... and so on. So assessing the value involve valuator component that provide amount of fungible resources that can be redeemed with the given NFT.

Also Supported NFT are the one that wrapped asset already listed as Collateral. An example could be a LP Token from a pool XRD/BTC on CaviarNine (a sliding hex of Radix)

How can we acquire those NFTs?

In many places. The most common will be Radix unstaking Claim NFT. These NFT are given on an uptake action. Unstake involve cooldown of 7 days, so the validator component mint an NFT that can be redeem later for XRD. This Unstaking NFT as the face value in XRD of the redeemable value and can be used as collateral on Weft v2. May be a first in the crypto industry 🙂

Amazing, I think this complex technology could give us a new evolution for NFTs

And it's an example. Any component that can provide a NFT that check boxes mentioned above can be eligible

Fully agree

Thanks a lot for the clear explanation, would you like to add something else before the next question?

Ready for the next question

Let’s go then!

Q2 from Telegram user @StepO72 Weft interest rate are dependent of the market dynamics as read for both scare and abundant capital. As a new lender, what are the categories of assets suitable for high abundant interests? For assets recovery, what are the procedures to unlock an asset? Also, your partnership with Radix, does Weft have a backup partnership to Radix.

Based on our experience, Lending of Stablecoins yield more than other assets. Surely due to current market conditions.

Non assets are lock. At any point a lenders can withdraw his fund. But the asset could have been let out. In that case, interest rate dynamic is design to create a repay incentive if liquidity stated drying out

Radix had been very supportive along they. Radix provide a fantastic dev experience and the Team actively participate in ecosystem projects success

Could you tell us about other important partnerships that you got at the moment?

Sounds great

We are part of the RunsOnRadix initiative

Interesting

And we got a grant allocation during the development phase of the V1, we also have technical support from the Dev advocates team

That makes the platform more attractive

But there a key plus available to Radix builders: The community is just second to none when it comes to mutal support. So overall a great place for builder 🙂

Impressive :)

Do you want to add anything else before we jump into the next question?

Congratulations for this impressive collaboration 👏

We can jump to the next question

Q3 from Telegram user @Mukszin3874 I see Weft Finance introduced the concept of Flash Loans and Flash Collateral Operations, which sound both innovative and potentially complex. Can you break down how these features work for someone who’s never used them before? What are some practical use cases where these features could really benefit users, and what are the risks involved that users should be aware of?

Flash operation are operation that move assets out from their location and have too move them back in a single transaction.

What are the benefits and use cases of that operations?

Flash loan are loan that are taken without collateral and has to be paid back in the same transaction otherwise the transaction will fail. A common use case is arbitrage. Meaning taking advantage of price difference from 2 market. An arbitrageur with zero liquidity upfront can take a flash loan, buy assets on the cheapest market sell them for profit in the most expensive market and repay the flash loan while keeping the profit

I have never seen something like this

In lending dApp, flash loan can be use for liquidation of unhealthy position without capital mobilized by the liquidator.

You guys are pioneers on it, right?

It sounds profitable for traders

No, it's an advanced feature around for quite some time, but Radix Transaction model make it incredibly easy to implement and use

Yeah, they seem to be the target of that product :)

In fact price stability across refi should thanks flash loans

Thanks for clarifying

What are the risks?

The main risk is smart contract bugs which is the main risk of any DeFi application. Other risks involve attacks that can be set up on top of flash loan.

Related to this. Have you guys been audited?

I mean smart contracts and so on. Users trust more on that kind of projects :)

Very clear, users shall take measurements

Always 🫡

Worked with Pessimistic, and we also use formal verification from security expert.

Nice. Thank you for your answer

You're welcome

Always !

Ready for the next one? 🙃

Yes

Q4 from Telegram User @Deyriennn1 What tokens are currently supported by the Weft Finance protocol for lending and borrowing activities? Besides $XRD, does Weft accept other types of tokens, and if so, what are the criteria for token inclusion? How does this diversity of tokens impact platform liquidity and user engagement?

There you are! A question about tokens and XRD

Radix has bridged ETH, BTC USDC and USDC. We support them for lending and borrowing activities. Weft is over collateralized so borrowers need to lock collaterals. We support 4 type of collaterals: Asset from lending pools, XRD derivatives (LSU, LSULP, ...), Ecosystem project tokens : OCI, CAVIAR, SRG, ... and Bluechip Ecosystem meme coins EARLY and HUG. The impact had been amazing. We reach 1.4M in TVL in 17 days and the third is LSU locked as collateral.

Other Type will be add in the future like LP and project staking receipts

Wow, that's massive

Talking about it, could you share us your roadmap to check what is coming?

Great numbers!

The next big milestone is the migration to a DAO. Staking of WEFT token is live and stockholders are already getting share of lending fees. But we need to enable voting power and protocol governance on top

Can you please also share your tokenomics? 👀

Giving more use cases to the token. Well done 👏🏼

For current Weft 2, we are working on Lending/Borrowing mix that we call strategies. One could boost his staking yield 5 time with a well crafted strategy

Great effort, we are glad to know that big things are coming for Weft, that's what we need in crypto ecosystem 👏

Yes there is 🙂

Would you like to add something else?

Not for this question.

Q5 from Telegram User @JaviSuBs™ Hello team Weft The incentive program for lenders, how it works and how to know what the deadline is to be available and which countries and users are compatible to participate in the Weft project, how to obtain benefits from the XRD token and what is the advantage of being a large holder?

We would like to incentivize asset lending, so we allocated 6M WEFT Token for 13 months to rewards lenders. For now lender need to provide liquidity on XRD xUSDC and xUSDT pools with a minimum value of $50 in value. We could expend eligible lending pool in the near future

Current resulting yield are pretty cool so it's could be an opportunity to stack some WEFT Token before the DAO

SatoshiClubbers, go and check it. Maybe you are interested on it

Amazing, thank you so much for the information shared in this first part of the AMA

Thanks for inviting us 🙏

We are glad to having you. Now, it's time to proceed with the second part of the AMA

We will open the chat for community questions and you should answer your 5 favorite questions

Okay.

Good luck everyone!

Can community suggest submit proposals for changes for Weft Governance?

Yes, we listen to the community and any matter rises by the community to improve the protocol is considered. Just jump in our telegram group and raise your concern

Can you share social media links ? So we can keep ourselves updated?

We have a linktree: https://linktr.ee/weft

What is your strongest advantage that you think will make your team leading the market?

Our strongest advantage is the extensive list of asset that can be use as collateral and model that attract liquidity with advance features

NFTs like Radix Unstaking Claim NFTs are innovative collateral options on Weft. How do you see this influencing the broader DeFi landscape?

This is key in our stratigies gearing toward LSU and yield derivative. Without LSU and unstake NFT as collateral, strategies like Fast Unstake and LSU Yield boost would have been impossible from a lending app