White Whale Opens Flash Loans For The First Time On Terra
Taking advantage of arbitrage opportunities has always been an exclusive game only accessible for those with robust capital. Having recognized this issue, we decided to create a protocol that must open up this lucrative trading type to everyone who seeks to benefit from it, regardless of background, or available funds — and so White Whale was launched. Read on to find out all you need to know about White Whale, and our newest flash loans proposal that pushes the limits even further.
What is White Whale?
Simply put, White Whale (WHALE) is a Decentralized Finance (DeFi) protocol built on Terra (LUNA) to unlock otherwise inaccessible, lucrative opportunities for users. Essentially, our main goal is to take advantage of arbitrage possibilities with pooled funds, and redistribute the gains to participants in WHALE tokens. Arbitrage in this case refers to reverting the UST stablecoin back to peg — USD 1 — by either buying and burning LUNA tokens, or minting and selling new ones. Investors who normally don’t have access to the volumes needed for such transactions now have the option to delegate their part to a mutual fund that is a sufficiently significant capital for efficient arbitrage.
How does White Whale work?
Until White Whale started, high technical knowledge, large upfront capital, and robust bot infrastructure had been required to take advantage of this low risk form of trading. However, with our protocol, all these are things of the past on an individual level. We not only provide our depositors with specially designed arbitrage bots, but also the technical expertise needed to reach sustainable success. All these combined make White Whale work like no other DeFi protocol out there.
Let’s see how exactly the arbitrage happens. UST is a stablecoin pegged to the U.S. Dollar, meaning that its value should always be really close to USD 1. To keep its price in that territory, there is a protocol involving LUNA that influences UST’s valuation. If UST rises above peg, LUNA tokens can be bought and burnt, which automatically results in a drop in UST’s price. On the other hand, if UST dips below USD 1, LUNA tokens can be minted and sold to bring the stablecoin back up to peg.
With that said, what happens when there are no immediate arbitrage opportunities open? This is when White Whale truly excels and leaves the rest behind. To maximize fund efficiency, during such times, capital is deposited to the Anchor protocol where high yields are earned until new possibilities are detected by our bots.
About White Whale Flash Loans
Now that everyone understands the groundbreaking mechanics of the protocol, let’s take a look at one of our recent, and most important governance proposals, namely Flash Loans. In short, since the community voted in favor, White Whale will start offering capital allocations called Flash Loans to investors who lack the funds to efficiently benefit from arbitrage opportunities. The users primarily targeted by this system are tech-savvy traders with their own bots and knowledge, but with insufficient capital. To illustrate the importance of this proposal, we highlight that this is the very first time such loans are offered on the Terra ecosystem, which makes White Whale the utmost pioneer in expanding access to arbitrage in innovative ways.
At White Whale, we pave the way towards a profitable future, where investors of all backgrounds can benefit from lucrative opportunities, such as peg arbitrage, in a user-friendly way. With our newest Flash Loans, we invite further members of the community to simply maximize their efficiency, and to contribute to the Terra ecosystem’s robustness together. Remember, there has never been a better time to join, so we urge everyone interested to give White Whale a try. As our motto goes: Keep the peg. Be the whale.
To learn more about Flash Loans and how to access them, click here.
