Lending · Review
ActiveWeft V2 Review 2026: Lending and Borrowing on Radix
Weft V2 is a lending and borrowing market on the Radix network with Efficiency Mode, Isolation Mode and support for liquid staked units. Its tracked TVL is very small and no audits are listed, so it suits cautious experimenters rather than large deposits.
By the DappsAtlas editorial team · Updated
DappsAtlas score
4.8/10
Weak
Our verdict on Weft V2
4.8/10Weft V2 is a small lending and borrowing market on Radix. Its main strength is the V2 risk design, with Efficiency Mode for correlated collateral, Isolation Mode for riskier assets and support for liquid staked units. The main caveat is scale and assurance: tracked TVL is only a few thousand dollars and no audits are listed. It suits Radix users who want to try on-chain lending with small amounts and who accept smart-contract and liquidity risk. Larger depositors should look for audits and deeper liquidity first.
Score breakdown
How Weft V2 scores
- Security
- 3.5/10
- Ease of use
- 6.0/10
- Fees
- n/a
- Features
- 6.0/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Weft V2?
Weft V2 is the second version of Weft Finance, a decentralized lending and borrowing application on the Radix network. It has been tracked as a lending protocol since late 2024 and has its own token, WEFT.
The app lets users supply assets to earn interest and borrow against collateral. According to descriptions of the protocol, it handles XRD, liquid staked units, xUSDC, WEFT and other Radix ecosystem assets, and it also refers to NFT collateral.
V2 introduced Efficiency Mode and Isolation Mode to manage collateral and risk. The project has also run a lenders incentive program.
Scale is the main limitation. Tracked TVL is only a few thousand dollars, so the market is small, and no audits are listed.
How Weft V2 works
Weft V2 is a pooled lending market. Lenders deposit assets into a shared pool and earn interest paid by borrowers. Borrowers post collateral, such as XRD or liquid staked units, and draw other assets from the pool up to a limit tied to the collateral value.
If the collateral value falls too far relative to the loan, the position can be liquidated to repay the debt. Rates are set by market conditions in the pool, typically rising as more of the supplied assets are borrowed.
V2 adds two risk tools. Efficiency Mode allows higher borrowing against correlated assets, and Isolation Mode places riskier assets in a separate category with tighter treatment. All actions are signed through the Radix Wallet.
7 features
Key features
01
Lending and borrowing
Lets users supply assets to a pool to earn interest, or deposit collateral and borrow other Radix assets against it.
02
Efficiency Mode
Reduces collateral requirements when the assets involved are closely correlated, which raises borrowing capacity for those pairs.
03
Isolation Mode
Keeps riskier assets in a separate category so that problems with them are less likely to spread to the rest of the market.
04
Liquid staked units
Supports Radix liquid staked units, so staked XRD positions can be used within the lending market.
05
NFT collateral
The borrowing interface refers to NFT collaterals alongside fungible collateral, expanding what can back a loan.
06
Lender incentives
The project has announced an incentive program for V2 lenders, paid in addition to base interest.
07
Radix Wallet access
Users connect through the Radix Wallet to supply, borrow and manage loans.
Pros and cons
What we like
- Native Radix lending market with wallet-based access and no custody of user keys by the app.
- Efficiency Mode can lower collateral needs for correlated assets.
- Isolation Mode separates riskier assets from the main pool.
- Supports liquid staked units, giving staked XRD holders a way to use their positions.
- Open-source code is referenced in project materials, and the app shows markets and rates directly.
Watch out for
- Tracked TVL is only a few thousand dollars, so liquidity for borrowing and withdrawals is thin.
- No audits are listed for the protocol, and the project does not publish audit reports on its homepage.
- Radix has a much smaller DeFi ecosystem than major chains, which limits assets, integrations and exit options.
- The team, governance setup and risk parameters are not described on the homepage.
- Incentive programs can inflate yields temporarily, and rewards may fall once they end.
- The WEFT token adds price exposure for anyone who holds it or receives it as rewards.
Weft V2 fees
Weft does not publish a fee schedule on its homepage. Supply and borrow rates are variable and are shown per asset in the app's market pages.
Network transaction fees on Radix apply to each action. Any protocol fee on interest or liquidations, if one exists, is not stated, so check the app's market details before borrowing.
Is Weft V2 safe?
No audits are listed for Weft V2, and the homepage does not publish audit reports, team details or a bug bounty. Treat the smart contracts as unaudited unless the project shows otherwise.
The app is non-custodial: funds stay in on-chain contracts and actions are signed in the Radix Wallet. Risks include contract bugs, oracle problems, liquidation when collateral falls, and low liquidity that can make withdrawals or exits harder. With very low TVL, a single large position can affect rates and available liquidity.
No incidents are recorded in the information available, but a short track record and small size mean limited proof of resilience. Check local rules on borrowing and token use before participating.
6 steps
How to get started with Weft V2
- 1
Set up a Radix Wallet and fund it with XRD or another supported Radix asset.
- 2
Open the Weft V2 app and connect the wallet.
- 3
Review the markets page to compare supply rates, borrow rates and which assets are accepted as collateral.
- 4
Start with a small deposit to learn how the interface and wallet approvals work.
- 5
If borrowing, keep the loan well below the maximum so a price drop does not trigger liquidation.
- 6
Monitor your positions and rates regularly, and withdraw or repay when conditions change.
Who Weft V2 is for
Weft V2 is for Radix users who already hold XRD or related assets and want to earn interest or borrow against them. It suits experienced DeFi users comfortable with unaudited protocols, small pools and liquidation risk. It is a poor fit for people who need deep liquidity or audited contracts.
Weft V2 FAQs
What is Weft V2?
Weft V2 is a decentralized lending and borrowing application on Radix. Users supply assets to earn interest or post collateral and borrow other assets against it.
How do I use Weft V2?
Supply, borrowing and collateral all happen through the Radix Wallet connected to the Weft app. You approve each transaction from the wallet, so the app does not hold your keys.
What is special about Weft V2?
Weft V2 introduces Efficiency Mode, which lowers collateral needs for closely related assets, and Isolation Mode, which keeps riskier assets separate. It also supports liquid staked units and NFT collateral.
Is Weft V2 safe?
No audits are listed for the protocol, and the tracked TVL is only a few thousand dollars. Smart-contract risk, liquidation risk and thin liquidity all apply, so only use money you can afford to lose.
Does Weft have a token?
WEFT is the protocol's own token and appears as one of the lendable assets. One of the project's posts also announced a lenders incentive program for V2.
Which assets can I lend or borrow?
The app shows live markets and rates for assets such as XRD, xUSDC, WEFT and liquid staking units. Supply and borrow rates change with market conditions, and the project does not publish fixed figures elsewhere.
Compare
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How we checked
Sources
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