White Whale was founded with the mission to empower small market participants and democratize arbitrage opportunities for everybody. Originally from Terra (Classic), White Whale has pivoted its focus from a single smart contract blockchain to become the first Interchain Protocols in the Cosmos Ecosystem.
Since the liquidity in decentralized finance (DeFi) is fractured and price movements don’t propagate to other exchanges, either on the same chain or on other chains, price disparities exist. So-called arbitrageurs can realize these market opportunities by buying a certain token on one market and selling it on a different market as soon as possible for an ideally higher price.
Arbitrageurs provide market stability by taking advantage of price inefficiencies and making simultaneous trades that offset each other to capture profits. To become an arbitrageur one needs sufficient capital to realize the full arbitrage opportunity. Further, arbitrage requires deep technical understanding, since it is typically necessary to create competitive automated trading bots. Since the barrier to entry for this yield-generating strategy is very high, large institutions and already resourceful entities are profiting the most, retail investors are left out of this opportunity.
White Whale’s Interchain Liquidity Protocol primarily consists of two components:
In addition, the Interchain Command collects protocol fees which are redistributed to Whale stakers through $WHALE buybacks. Selective Tokens, i.e. $ATOM can be chosen via governance to be distributed directly to Whale stakers.
Due to its interchain design, White Whale can offer market coverage to other projects, which want to export their token to tap into new markets and ecosystems. Two examples of this are Stable Coin and Liquid Staking Derivatives issuers. White Whale can deploy regular (IST/ATOM) and stable swap (IST/CMST) pools across the interchain wherever market coverage is desired. White Whale’s flash loan vaults further help assets to keep their peg/ conversion rate.