The highly anticipated Terra (Luna) Network arbitrage project White Whale has officially launched securing a hefty $US27 Million in funding from a process the project team is calling BOOTSWAP source. This achievement makes White Whale one of the most successfully launched projects on the Terra Network and their preferred method of fund raising will hopefully ensure the Liquidity Pool remains full.
What is BOOTSWAP?
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According to the project team the method of Bootswap was developed by Balancer whom launch tokens with Project funds setting the price high and as the token price increases selling the project tokens and adding more Liquidity. Eventually once enough capital has been raised and the project reaches it's desired LP position they retire and allow the community to take further control source.
In relation to White Whale I believe this is where the additional $6 Million of UST has come from that is currently in the treasury and not paired with their native token.
It is important to note that White Whale is not removing LP to spend on their project they state that they have matched the LP to a 50/50 ratio and it will remain as the community pool.
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A quick assessment and from the outset it appears that White Whale has remained true to their word and the LP is quite strong.
What is White Whale and why is it so popular?
White Whale is effectively going to be a community arbitrage service that will enable retail investors to engage in stabilising the Terra UST peg through Terra's Arbitrage model called Seniorage.
The way Seniorage works is swapping UST to Luna or Luna to Terra for profit in times of volatility to maintain the peg. A form of arbitrage which traditionally block chain investors may develop to undertake arbitrage across multiple Liquidity Pools.
White Whale is undertaking the trading through the development of a Bot and in a recent medium blog where they explain their project they go into detail on why they don't just create the bot for themselves and profit. You can read it and learn more about the project here
Strategic Investment Round
The project also went on to be awarded $US35Million worth of funding from the Terra Labs, Terra Ecosystem Development Fund. Further Whale will be provided to Star Terra for staking rewards and a Pylon Pool will be developed where investors can lock UST in a vault for a time period and earn a APY% source
Is White Whale a good project?
Speaking specifically to the project objective of providing investors the ability to participate in arbitrage with many people on the Cryptoshpere don't particularly currently do and is left to bots, yes. As a Terra (Luna) investor myself with the ability to participate in arbitrage I do not because it is a fair bit of work and unless you have a lot of funds which I don't it isn't particularly worth it.
However, if you are pooling funds with a large number of other investors than the rewards become lucrative especially if someone else is undertaking all the work for you. The arbitrage strategy is also quite profitable for the project so we can expect to see price growth.
You can follow the project on their official Twitter account here to stay up to date and engaged with the project.
Image sources provided supplemented by canva pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services