Weft Finance has secured the $15,000 Babylon Booster Grant. 

What is Weft Finance? 

Weft Finance is a decentralized lending and borrowing platform leveraging the benefits of the Radix tech stack. Weft Finance offers a platform where users can deposit assets and earn interest as well as using these assets as collateral for borrowing. So far, the Weft Finance platform has experienced $1.23m in deposits, $455k in loans, 80m XRD staked, and just over 13m XRD locked in liquidity pools, according to their recent social post. 

But what makes Weft Finance special? 

Weft Finance stands out in the DeFi space with its unique features such as 'Wefties' Delegator-Delegatee Relations and flexible collateral ratios. The so-called ‘Wefties’ are NFTs that represent a user's loans and collateral. Users can create as many Wefties as they want, and they can transfer them, which separates the user’s financial activities from their Weft Finance account. This means that loans and collateral aren't locked to one account but can be represented by Wefties and transferred around independently.

Another feature is Delegator-Delegatee Relations, allowing a user to let another borrow funds on their behalf without needing their collateral. The delegator sets how much the delegatee can borrow. This adds flexibility to borrowing and lending.

Weft Finance also defines collateral requirements per (collateral-loan) assets pair for streamlined risk management. This is a departure from traditional systems that require a fixed collateral ratio only on the collateral side. By allowing for dynamic adjustments, the borrowing power of a user is not limited by the assets they have provided as collateral, but can also be influenced by other factors, such as the assets they wish to borrow.

Recently, the Weft Finance team announced that their validator node ranked in the top 10 nodes within the Radix ecosystem.

As a thanks to their supporters, they launched the Weft Finance incentives program, aimed at rewarding early adopters of their platform with an impressive 20,000,000 $WEFT tokens, with 7 million $WEFT tokens going to stablecoin lenders over the next seven to eight months and 3 million $WEFT to borrowers. 

You can learn more about Weft Finance by visiting Runs on Radix Q&A: Weft Finance.

So, what’s on the horizon? 

Weft Finance focuses on ambitious yet achievable goals. Here's a glimpse into what lies ahead for the project:

Targeted Growth Metrics

TVL Goal: Weft Finance aims to escalate its TVL to an impressive $4 million. This growth in TVL will symbolize increased user trust, traction and the robustness of their platform.

Lending Expansion: Another significant milestone includes reaching $2 million in loans. This increase in borrowed funds will demonstrate the platform's utility and reliability in the DeFi space.

Fundraising for Full-time Transition: The project is on a mission to raise $2 million. Achieving this will enable the Weft Finance team to transition to full-time roles, thereby intensifying their focus and accelerating the project's development.

Roadmap and Upcoming Features

Staking/Security Pool Deployment: In a commitment to enhancing security, Weft Finance is launching a staking/security pool. Users will be able to stake their WEFT tokens in this module, similar to AAVE’s model which secures itself through the Safety Module (SM), where AAVE holders lock tokens to mitigate potential deficits. In a deficit event, locked AAVE is auctioned, with a backstop to control market impact. Participants receive Safety Incentives (SI) for locking AAVE, subject to cooldown. Thus enhancing the overall security of the platform.

User Interface and Functional Enhancements: Weft Finance is focusing not just on aesthetic improvements but also on enhancing functionality. 

Upcoming features include:

Loan and Collateral Swap: Offering users flexibility in managing their loans and collateral.

Repay with Collateral (Self-Liquidation): This innovative feature will enable users to handle their loans more efficiently.

Community Toolkit for Liquidation Bots: Weft Finance is empowering its community by providing toolkits for those interested in running liquidation bots. This initiative is part of a broader goal to engage and enable users to contribute actively to the ecosystem.

The Radix Advantage: A Founder's Perspective

Reflecting on the advancements of Weft Finance, Atoumbre shared:

Building on Radix has been an overall amazing experience. Recently, we delved deeper into other Layer 1 solutions for educational purposes, and it became clear how far ahead Radix is. While the industry is becoming more aware of the need to enhance user experience and how smart contracts can be game-changing, catching up with Radix's clever authorization model—based on resources and virtual actors—and transaction manifest will be a significant challenge.

Another key aspect of building on Radix is the sense of security it provides for both builders and developers, a relatively rare combination in the crypto space.

Recognizing its cutting-edge technology and forward-thinking approach, we are committed to continuing our projects on Radix. Our goal is to leverage its unique features, fantastic user and developer experience, and the robust infrastructure it offers, ensuring that our endeavors remain at the forefront of decentralized ledger innovation.

‍

For more information on the project, head to the website, follow the project’s official Twitter account, or join the Weft Finance Telegram channel.

All information about Weft Finance was provided by the Weft Finance team and has not been verified by Radix Publishing, RDX Works, or their associated companies.

‍

To stay in the loop with the Radix Grants Program and be first to hear about updates on the upcoming cohort 2, join the developer program.