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Daniele Sesta deployed his newest venture, WAGMI, on Metis. WAGMI will receive a $2 million grant, the first disbursement of the 4,600,000 METIS ecosystem development fund, currently valued at around $375 million.
The DeFi magnate announced plans for long-term collaborations with Metis, saying in a recent Space with Metis that he has never seen so much potential in a blockchain network. WAGMI will greatly enhance composability on the Metis ecosystem, and its team has already started conversations with numerous Metis ecosystem DeFi protocols regarding potential collaborations.
Daniele Sesta’s protocol, WAGMI, plans to offer a comprehensive DeFi solution to Metis users. Upon launch, it will offer users:
The DEX component will allow permissionless pool creation. It will enable highly efficient trades, as liquidity will be strategically managed by GMI strategies.
The arbitrage bots will be a way for market inefficiencies to become users' returns. Users will be able to directly interact with these bots and obtain revenue that would've been left on the table otherwise.
Finally, the GMI strategies are the USP of WAGMI, allowing users to seamlessly interact with concentrated liquidity pools. If you've provided liquidity on Concentrated liquidity AMMs, you know how much of a pain it is, and WAGMI will solve it.
Shortly after the deployment, the crypto innovator plans to launch a perpetual contracts trading product, allowing users to trade major tokens and ecosystem tokens with leverage, and eliminating the risk of users being liquidated because of price manipulation.
The WAGMI mechanics have a very positive impact on the ecosystem’s liquidity and health. When creating positions on WAGMI, all of this liquidity is essentially locked forever, allowing for more efficient strategies, the long-term sustainability of the protocol, and deep liquidity, which is a significant factor for an ecosystem’s success.
This also carries a positive impact for ecosystem protocols. The main reason why the supply caps of pools on Aave haven’t been raised is because of lack of liquidity. With WAGMI’s launch, the ecosystem will have deep ETH, METIS and USDC liquidity, allowing for supply caps to be raised. This will also be beneficial for perpetual contracts traders, as they will have deeper liquidity for seamlessly opening positions.
Additionally, once WAGMI deploys its perpetual contracts trading platform, it will allow for permissionless creation of liquidity pools for leverage trading. Pools can be created for users to leverage trade the native tokens of ecosystem projects like Revenant, Hummus, Netswap, Athena, Tethys, and more.
