Being a Crypto Whale? (Terra Network)

WhiteWhale which is a new protocol on Terra has come on live recently and now has the UST vault up and running. For those unaware the protocol is focused on using the sum of all investors to arbitrage the crypto token to keep it liquid while earning investors an APR.

The current APR for UST arbitrage is in excess of 20% which is much more than the current 20% APY on Anchor protocol. Once more UST is staked into the WhiteWhale vault I would imagine the APR will drop but we shall see.

The goals of WhiteWhale is to keep UST pegged as close to the $1 dollar while also earning investors a decent % APR. All told this would strengthen the Terra Ecosystem as more liquidity is being transferred around and everyone who stakes in the vaults earning interest.

There will also be a Luna vault coming on live which I will be interested in investing in as it can potentially earn a decent % APR of Luna for just investing in the vault.

Benefits of Arbitrage

The major benefits of arbitrage is the following:

1. A Delta Neutral Strategy - Whether it is a bull market or a bear market performing arbitrage results in gains as it only targets on obtaining price difference between spreads. The end goal is making profits and the risk of picking highs and lows of prices are disregarded.

2. No Impermanent Losses - With one asset staked in each vault the asset can drop in value but that is basically asset value depreciating. It is different from liquidity pools of 2 or more assets where impermanent losses may occur. With single assets investing we avoid any such impermanent loses.

3. The Protocol's Native Token WHALE - The protocol will have a war chest for users who hold and stake WHALE to have the opportunity to vote on what actions to perform in the future to bring more profits and stability on WhiteWhale. This benefit is really built within the protocol rather than being a benefit of arbitrage. Yet knowing there is a chest of savings for the platform to be able to implement in cases where additional liquidity is required is a beneficial for the platform as a whole.

Conclusions

https://app.whitewhale.money/vaults

Why I started this post title as being a crypto whale comes down the main function of WhiteWhale. The protocol will trade its large sum of liquidity to earn a small price difference. The price difference gains and then distributed evenly to the proportion of each investor's stake. The arbitrage can only be perform if the amount being traded is large and that can only happen if one has a ton of liquidity. With WhiteWhale users can combined each others assets together to form the whale and be able to take advantage of the arbitrage. Are you ready to be a whale?

None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!