Whale Loans: How Everyone Can Profit With DeFi
There are ways to earn a few percentage points with your crypto, and then there are ways to make Lambo-level gains. Staking and bonding through Whale Loans can take you to the moon on those wheels.
For potential APYs of 40,000%+, Whale Loans has transformed and tweaked crypto innovations such as Protocol-owned Liquidity (POL) into new models of value creation.
What You Need to Know About HUMP
A fork of OlympusDAO’s OHM, HUMP is the token that powers Whale Loans staking and bonding products. Soon, it will augment the Dynamic Hedging Vaults along with the Flash Minting Platform.
Basically, HUMP is a free-floating currency backed by Whale Loans’ treasury supply with a diversified portfolio of assets. Each HUMP is backed by at least 1 BUSD. If HUMP ever trades below 1 BUSD, the protocol buys back and burns HUMP, pushing the price back up to 1 BUSD.
Note that HUMP is backed by BUSD and is not pegged to it. This allows the HUMP token to achieve a stable floating value that never falls below the value of its backed assets. The price of HUMP is designed to equal 1 BUSD + Premium, with “Premium” reflecting market value.
What Whale Loans Is and What it Isn’t
Whale Loans brings a unique opportunity for you to create big earnings — thanks to our treasury-based architecture and our robust ecosystem powered by HUMP. While our platform is a fork of OlympusDAO, the options we provide for staking and bonding provide greater value compared to OlympusDAO. Let’s take a quick look at OlympusDAO staking, its current issues are what Whale Loans can resolve.
OlympusDAO is a profit distribution mechanism with the primary aim of providing rewards to those who buy its OHM tokens. In this way, the protocol can provide profits to all participants. Through sOHM (staked OHM), everyone receives the same percentage profit at each rebase, which allows compounding of yield while only needing to be held. This method is known as “(3,3)” by users.
However, OlympusDAO’s method for both staking and bonding is afflicted with high fees because it requires the Ethereum Network. Whale Loans, on the other hand, runs on the Binance Smart Chain, whose fees are only a tiny fraction of ETH’s. Moreover, OlympusDAO’s APY will inevitably fall as more people stake because there will be less profit gained, as opposed to Whale Loans, where 50% of all protocol fees go to the treasury, consistently increasing the funds backing the token value. Another advantage for Whale Loans is that we have an expanding line of products that generate additional yield for users, that are not available on OlympusDAO, like our Dynamic Hedging Vaults, and flash minting platform.
How Staking and Bonding Work on Whale Loans
Although we have clear instructions on making mad gains through staking and bonding on our platform, it’s a good idea to understand how each of them works first and as always, please DYOR first.
Staking, Simple But Powerful
Users can stake the platform’s HUMP token directly on Whale Loans and earn rebase rewards, generating a handsome passive income. The rebase rewards come from the proceeds of bond sales and it can vary based on the number of HUMP staked in the protocol along with the reward rate set by monetary policy.
An increase in your stake of HUMP translates into a constantly falling cost basis converging on zero. This means that even if the market price of HUMP drops below the initial purchase price, the increase in your staked HUMP balance should eventually outpace the fall in price (given a long enough staking period). When you stake HUMP, you basically lock in HUMP and receive an equal amount of sHUMP. During unstaking, sHUMP gets burned in exchange for an equal amount of HUMP.
Here’s what rebasing is and how it works. First of all, you should know that an equivalent amount of HUMP and sHUMP is consistently maintained, with sHUMP being a kind of temporary marker for the growth of HUMP. As such, the amount of sHUMP is minted and burned to keep the amount of HUMP accurately balanced. When there’s a profit from HUMP, an equal amount of sHUMP is minted, thus “rebasing” the total amount up by the percentage of profit involved.
Bonding, a Deeper DeFi Dive for Even Greater Returns
Simply put, bonds are instruments you can purchase from Whale Loans’s treasury that can provide you with a greatly optimised yield. The treasury is our way of keeping liquidity in-house so that we can afford to sell the bonds at a discounted price.
This treasury model makes our platform self-sustaining, essentially letting us make our own market. As a result, the treasury model makes for greater overall sustainability and security than does the usual free-for-all of liquidity pools and providers.
Bonding is a little more elaborate than staking, but not by much. As a bond purchaser, you are quoted with terms such as the bond price, the number of HUMP tokens entitled to the bonder and the vesting period.
As a nod to our transparency and the confidence in the advantage bonding can create, we even advise you to buy and stake HUMP through PancakeSwap if specific edge factors with bonding don’t prevail.
How Whale Loans Comes Full Circle for Sustainability
With our platform, the treasury is fed by the rewards that it shares 50–50 with our DAO, thus providing mighty inertia with a full half of what’s gained. This provides backing for the treasury to keep the ever-widening circle of rewards growing and providing a potentially infinite, self-sustained liquidity.
Most importantly, as a HUMP bondholder, you gain all the rewards that would typically go to outside liquidity providers because of the treasury’s self-sustaining architecture.
In the end, through its superior staking and bonding offerings, Whale Loans lets you transform what are usually mere trickles of gains into a vast ocean of returns.
Just keep an eye on Whale Loans Twitter and Discord channels and learn how you can do it, too!
