Weft Finance is a decentralized lending and borrowing platform built on Radix. At the heart of Weft lies the creation and management of collateralized debt positions (CDPs) represented by NFTs, known as "Wefties."
- Core Concepts
- Deposit Units
- Loan Units
- Representing Units
- Loan Collateralization
- Liquidation Threshold
- Interest Option and Strategy
- Development and Launch
- Core Blueprints:
- Lending Pool
- Lending Market
- Wefty Features:
- The $WEFT Token:
- Token Circulation Strategy:
- Weft Tokenomics and Vesting:
- Borrowing Power Delegation
- User Position Operations
- External Components Integration
- Yetinin Coulibaly
- Atoumbré Kouassi
Weft was founded by two Ivory Coast engineers, Yetinin Coulibaly and Atoumbré Kouassi. Living in different continents, with Coulibaly in Paris and Kouassi in Abidjan, they came together with a shared vision for financial innovation and economic development in Africa. Their collaboration began in 2021 when both became active members of the Radix Community. Despite having never met, the two engineers discovered a shared vision for the future and a strong alignment in values.
After meeting in person in Abidjan in fall 2022, they decided to form a partnership and build their first decentralized application (dApp) for lending and borrowing financial services. This led to the creation of Weft, aiming to harness the transformative potential of RadixDLT for the future of DeFi.
The platform is now developed by a team of eight individuals, collectively known as Weft'ers.
- Lending and Borrowing Protocol: Enables users to lend and borrow assets with ease and transparency.
- Scalability: Built on Radix DLT, the platform is capable of handling over one million transactions per second.
- Security: Focus on minimizing security breaches, hacks, and poor user experience that have plagued other DeFi platforms.
Similar to Radix's Pool Units, Weft uses "Deposit Units" to track shares of pooled liquidity. This mechanism allows users to determine their share of the pool, and by extension, the interest accrued from borrowers.
Borrowed amounts are represented using "Loan Units," which reflect a borrower's debt obligation. The total borrowed amount, loan units for each borrower, and the corresponding total loan units are meticulously tracked.
Deposit and Loan Units have different representations. Deposit Units use fungible assets in equal amount, whereas Loan Units utilize NFT metadata, providing detailed specifics of each loan and collateral.
Weft's uniqueness is also evident in its loan collateralization method. Collaterals are equivalent to deposit units. This system ensures that users earn interest even on locked collateral.
Weft employs a multi-tiered liquidation threshold, ensuring the ratio between the value of a loan and its corresponding collateral is maintained. This system offers granular risk management and borrowing power flexibility.
Interest Option and Strategy
Weft's interest strategy calculates interest rates based on the state of a listed asset. Users can also choose between stable and variable interest rates, with each asset having mapped interest strategies.
Development and Launch
The decentralized finance application is slated to go live at the launch of Radix’s Babylon release in September 2023.
- Acts as a reserve, holding assets deposited by lenders.
- Each pool caters to a specific asset type.
- Uses a "Deposit Unit asset" to represent a contributor's share.
- Incorporates flash loans.
- Central hub for interactions between lenders and borrowers.
- Facilitates borrowing, repaying loans, and other activities through the lending pools.
- Wefty (NFT): Represents collateral and loan positions of users.
- WEFT Token: Acts as an insurance mechanism, enhancing platform security.
- Collateral Positions: Organized based on lending pool component addresses.
- Loan Positions: Organized similarly but introduce a secondary level of grouping for different interest options.
The $WEFT Token:
- Serves as a safety net against market volatility.
- Token holders can stake their tokens, helping stabilize the platform during turbulent times. They receive a portion of collected fees for their commitment.
- Utilized in governance proposals as a fee.
Token Circulation Strategy:
- Total supply: 100,000,000 Tokens.
- 65% airdropped to the community: validator node stakers (20%), liquidity providers (20%), and early adopters (25%).
- 35% for development, partnerships, and promotions.
Weft Tokenomics and Vesting:
- Tokens for development and promotion are vested over 12 months with a 6-month cliff.
- Tokens for listing have no vesting, ensuring liquidity.
- Community-allocated tokens are accessible upon distribution.
Users contribute to lending pools and receive deposit units.
- Validation Phase: Validates user's Wefty.
- User Order Execution Phase: Matches user’s method with Wefty methods.
- Health Check and Wefty Update Phase: Ensures loans are over-collateralized.
Borrowing Power Delegation
Users can delegate their borrowing power to others.
User Position Operations
Offers swap functionality and self-liquidation.
- Loans can be liquidated if the loan-to-value ratio surpasses a certain threshold.
- External Liquidation: Third parties can step in to liquidate loans.
- Internal Liquidation: The platform sells collateral assets to cover the loan.
External Components Integration
- Price Oracle: Provides real-time asset prices.
- DEX Aggregator: Finds the best prices for asset liquidation.
- The platform follows a reputation-based system. the WEFT token could be involve in governance model.
A master in Embedded Electronics and Industrial Computing, Coulibaly is a lead developer based in Paris. He has a strong entrepreneurial spirit, having instigated a Senegal-based startup that provided digital ticketing solutions for transportation and event sectors. Coulibaly's drive and interest in blockchain technology eventually led him to join the Radix Community and embark on the journey of co-founding Weft.
With a Master's degree in Applied Statistics and Economy, Kouassi has had a successful career in support service management in Abidjan. A dedicated professional, Kouassi has been following and experimenting with blockchain technology since 2013. His search for an efficient distributed ledger technology led him to discover Radix DLT, which would become the foundation for Weft.