WHALE Buybacks Explained

Trading using digital assets offers traders and investors a lucrative opportunity to build on their portfolios while enjoying the decentralization and high profits offered by the cryptocurrency ecosystem. To make this experience even more profitable for traders and retail investors, we have developed an arbitrage platform on Terra.

White Whale empowers retail investors to maintain their UST peg using L1 seigniorage arbitrage along with participating in various complex automated trading strategies using a user-friendly interface.

One of the most interesting features of the White Whale is the governance, where we aim to become a pioneer in decentralized community-led governance. And so, the team has recently conducted a poll for initiating a buyback.

White Whale Buyback

We recently conducted a poll that proposes to utilize all the protocol fees collected by the White Whale treasury, including vault withdrawal fees of 0.1% and arbitrage profits of 20%, to conduct regular buybacks of Whale Tokens.

Buyback is the process of purchasing the native tokens back from the market to reduce the circulating supply and hence increase the liquidity. We will execute these buybacks at random intervals daily. All the Whale tokens purchased will be stored in the Treasury to reduce the circulating supply. Moreover, as more vaults are added to the platform, the fees collected from them will be used for conducting more buybacks.

This poll was welcomed by the White Whale community and passed with 60.68M tokens being staked for the poll. 30.19% of the DAO voted in approval of the vote leading to the successful initiation of buybacks of WHALE tokens. This buyback mechanism will help the investors by offering more liquidity and possibly better ROIs.