White Whale Collaboration & Grant

Comdex Discussion
1

Grant Proposal
We are White Whale and are proposing to be granted 250k CMDX in order to deploy our dApp on Comdex. The deployment will include a smart contract code upload of our Liquidity Hubs: Pool Factory, Pool Router, Vault Factory, Vault Router, and Fee Collector.

Introduction of White Whale
White Whale’s Interchain Liquidity Protocol primarily consists of two components: the Interchain Command and Liquidity Hubs. Liquidity Hubs form the foundation of our protocol. They consist of our plain AMM pools we call Bot First Pools (BFP). BFPs are necessary to create arbitrage opportunities since they provide a reference price to the local decentralized Exchange (DEX) on its associated chain. On the other side, Liquidity Hubs consist of Flash Loan Vaults. Flash Loan Vaults can provide the required capital to equalize price disparities between the BFPs and the local DEX pools. An uncollateralized loan can be taken out of these vaults, which can is used to arbitrage the price disparities and are set to be paid back in the same transaction including the vault fee (0,3% to start and we will probably lower them in the future). Any developer can create their arbitrage bot and make use of our infrastructure.

Benefits for Comdex

  1. Local Arbitrage

We will deploy our Liquidity Hubs consisting of BFPs and Flash Loan Vaults on Comdex. The BFPs serve as a reference price to the primary DEX (cSwap) on Comdex to arb against. When a big trade occurs on cSwap the price of the traded token will deviate from other exchanges. Thanks to White Whale arbitrageurs can take a flash loan with the help of our Flashloan Vaults and arb the token price on cSwap against our BFPs and make a risk-free profit. This will significantly increase volume on cSwap and therefore attract even more liquidity because liquidity providers will earn higher rewards.

  1. Liquidations

This described arbitrage infrastructure will also enable faster and more efficient liquidations on Commodo. Liquidators don’t have to use their capital to do their job. This prevents liquidity from sitting idle on chains not earning yield.

  1. Democratizing Arbitrage, liquidations & market making

Usually, the above-described mechanisms can only be executed by sophisticated and capital-rich whales and institutions. Thanks to White Whale any Defi participant on Comdex can profit from these market-making strategies by simply providing liquidity to our pools.

  1. Liquidity on demand

The next step in the evolution of White Whale will be to link all our Liquidity Hubs including Juno, Terra, Chihuahua, Injective, and Comdex and create a liquidity-on-demand system. If a lot of DeFi activity happens on Comdex, the Liquidity Hub on Comdex will attract further Interchain Liquidity from other Liquidity Hubs and thus satisfy the demand on Comdex.

  1. Broader market coverage for desired tokens, for example stablecoins

Due to its interchain design, White Whale can distribute Comdex tokens that desire broader market coverage. The prime example, in this case, would be CMST, the native stablecoin of the Comdex Ecosystem. We can setup pools wherever our Liquidity Hubs are present.

  1. Keep the peg of the stablecoins

Last but not least, White Whale will enable broader market coverage for CMST and stabilize the stablecoin, with the help of its arbitrage infrastructure.

What we need from Comdex
Provide contracts to enable atomic interactions with orderbooks, lending markets & all other relevant applications on the Comdex Chain.
Provide liquidity into the created pools (at least 20.000$) on Comdex as well as on other chains for market coverage purposes.

Deliverables & Timeline
This year: Deploying on dev net + creating a Comdex Validator.
January 2023: Deployment on Comdex Mainnet

Proposed Long-term Compensation

250.000 CMDX token
25% vested on marketing + successful mainnet launch of at least 2 mirrored pools (ATOM/CMDX + CMDX/CMST) and 2 flash loan vaults (CMST + ATOM) on Cswap dex
25% vested on creation of the 2 stableswap pools (CMST/axlUSDC on Terra & Comdex)
50% vested quarterly for 2 years on providing market coverage for CMST and helping stabilize the stablecoin, with the help of its arbitrage infrastructure beginning with the implementation, but not limited to an ATOM/CMST pool on Terra. Further pools can be requested by the Comdex Community based on their needs.

3 Likes
2

Interesting, but there are some questions which are not clear for me.

  • Are there fees involved? In other words, what does White Whale earn by offering these services?
  • Your request for liquidity on all sorts of pools is for me not something Comdex should do. Comdex offers a platform and such, but should they go around spending money to provide liquidity? Would be not the way to go for me…
  • If you will start a validator on Comdex, you will earn commission. Then why is there 250k Comdex needed if you will earn commission as payment for potentially offering the service? I guess you also would expect team delegations?
  • What will you do with the earnings on the 250k CMDX vested? Because they will earn yield, also making money.

For me this feels like something where your service (possibly in combination with a validator) should already be enough to cover (development) costs and such. An initial funding via the community pool is overkill if you would ask me.

3 Likes
3

Hey,

thanks for engaging in the discussion! Let me respond to your questions:

  1. Yes White Whale will collect fees like any other AMM (0.3% per swap). In addition using our Flash Loans will generate fees as well (0.3%).

  2. We are asking to fund the pools to bootstrap their initial use, since we are in a bear market it is very difficult to attract external capital. We are in close talks with the Comdex Team, it won’t be obligatory to fund the pools but we feel it would make sense, since it will make our dApp more useful to Comdex users. There might also be other solutions, like incentivising pools etc.

  3. In regards to point 2. we are planning to walk the talk and use the CMDX of our grant and our validator rewards to provide more liquidity into our (mirrored) pools so that Comdex and White Whale will have an aligned incentive structure.

I hope that makes sense to you, let me know if anything is unclear.

4

For me the proposal would be way better if the risk and obligations of the Comdex team were way smaller; meaning no need for providing liquidity in all sorts of pools (not their core business, so probably not the best thing to do) and the fund would be more like a loan.

I mean; if WhiteWhale becomes successful then you would earn way more than these 250k CMDX, meaning it can also be repaid and the funds can be used again to bootstrap another project.

What makes me also wonder; what is the skin in the game you guys put in? You are running on a couple of chains already. How did it go there? And what does the protocol earn on the other chains?
And can those earnings not be used to bootstrap WhiteWhale on Comdex?

1 Like
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Like mentioned in the last post, it is not obligatory for the Comdex Team to provide liquidity into any pools.

The main question is: why do you consider providing liquidity into White Whale pools as a risk?
We see this as an opportunity for the Comdex Community to export CMST to new, untapped markets (like the axlUSDC/CMST Pool on Terra) and therefore drive further adoption of their stablecoin.
If the Comdex community sees this as an opportunity as well and wants to drive further adoption of CMST through broader market exposure, what sense does it make, if someone from Terra wants to get exposure to CMST but they can’t execute the swap because there is no liquidity in the pool?

Same goes for the pools on Comdex itself. Sure you could say just launch on Comdex but we will deny you the grant and will not put liquidity into White Whale pools, but then the value add would be minimal to zero because liquidity has to come from somewhere.

Regarding our skin in the game: we are putting in a lot of human capital to provide services to Layer 1s like Comdex that enable flashloans & arbitrage infrastructure, which will drive higher trading volume on cSwap, generating higher APRs for LPs, which will further attract more liquidity and more on-chain activity, giving a huge value add to CMDX stakers. As mentioned above we also provide the opportunity for broader market coverage to drive adoption for CMST. If Comdex succeeds White Whale succeeds as well.

The fees earned by White Whale pools and vaults will go to White Whale LPs (a further benefit for Comdex if they were to put liquidity into White Whale pools) and $WHALE stakers (once the token comes out), so they are not intended to fund any operational/expansion costs.

At the end of the day White Whale can be considered a tool, like a car. A car needs fuel in order to get from A to B, otherwise it just sits in the garage doing nothing. The above mentioned points are just suggestions on how to maximise the value of that tool for Comdex, it is fully up to the Comdex community if and how to use White Whale as a tool.

1 Like
6

I don’t understand why the team would take a step back and provide liquidity to terra chains now

terra is dead for most of the market, we have to look for new chains for expansion that no one is talking about yet, e.g. shade protocol

I think shade will be a 10x better investment

7

comdex has just started the premiere of its products, now it has to fight for its place on the market. This is not the time to support a project that has absolutely no liquidity

8

Thanks for your answers :slight_smile:

Reading this makes me wonder; where is the money WhiteWhale makes? Because if the fees earned by the pools and the vaults go back into the LPs, where do you earn money? What is in it for you?

And who is managing these WhiteWhale LPs? Iaw, how are they secured to stay in the LPs? (I like security measures, seen too many rugs in the last years >> not saying that you guys do that, but I like precautions).

Regarding the liquidity; I don’t see it directly as a risk, but I stated that providing liquidity is not core-business of Comdex. Just like MicroSoft will not be laptops. Related to their product, but not their core-business. One thing worries me though; “WhiteWhale pools”? I am hoping you guys work with the pools on cSwap and not your own pools?

Further, regarding the untapped markets; what are the big plusses from what we see on other chains? What can we expect? What is the before and after picture of your tool on those chains?

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For Comdex, it helps in creating a flash loan and arbitrage infrastructure. There will be mirrored pools and flash loan vaults which will help maintain the peg of our assets on our Dex and lending/borrowing platform Commodo which is essential for us… We also have plans to expand into different ecosystems for which the chains that whitewhale offer include Terra, INJ, Huahua, Juno. With whitewhale integrating all the liquidity into a single one through an upgrade which will happen in near future, it will be beneficial for users to have liquidity at just one place. Also as mentioned above, Comdex wont be obligatory to fund some of the pools. Comdex wants to attract more users from different chains and increase it users.

10

Yeah, but how would these pools work?

People deposit on WhiteWhale in an LP and the WhiteWhale protocol distributes over various chains? That would not have my preference, because in fact we place 1 party as middleman having access to a large amount of liquidity… and crypto is started to cut out the middleman + having 1 party being able to shift liquidity left and right… sounds scary to me.

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Im also keen to hear a reply on this

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Yes, people will deposit their LP into the protocol, which in turn distributes it over chains (note, that this is not live yet).

Important to note here is that White Whale is not a “party”. It is, like you said in you first sentence, an open-source protocol where anybody can verify how these funds will be distributed. When someone deposits funds into White Whale, it is like depositing funds into Uniswap, AAVE, Maker or any other (set of) smart contract(s) for that matter. You will always take custody over your assets, you can always withdraw at will.

There won’t be “1 party being able to shift liquidity left and right”
The distribution of the liquidity will be decided via a decentralized governance mechanism through $WHALE stakers. Every chain where White Whale is deployed, will have a gauge where WHALE stakers can allocate as much percentage of their voting power as they wish. The Liquidity will flow accordingly.

13

If Comdex were to add an aggregator on chain would comdex users be able to swap through more liquid pools (Juno or huahua for ex) on white whale and still pay a CMDX fee? If so it could have some interesting synergy with skip once it’s launched on comdex mainnet as well. Or would an aggregator be limited to whatever pools are on the comdex side?

14

Thanks for the reply!!

Will the LP distribution be live in the MVP?
I am still a bit wary about having 1 protocol (albeit open-source) managing funds on multiple chains. For me that still leaves one big attack vector for the ecosystem: being the protocol itself. Having multiple DEXxes adds to resilience of the ecosystem. If a large portion if the liquidity is managed by 1 protocol, then that resilience is compromised.

I understand the benefits, but I also see risks. Are there safety measures in place? Limiters on withdrawals, etc etc?

15

Voted “No” on the proposals for now, due to the concerns raised but not answered yet.

Has the protocol been tested on testnet?
Has the protocol been tested on security when being live on multiple testnets at once as we would see in mainnets?

16

the team has most of the coins anyway so our votes don’t matter.
Plus, they still sell from that address

17

Oh wow @CMDX_GOD you’re back again with this. Please refer to my replies in your own discussion thread regarding selling. Big disappointment and a huge minus for the team - #2 by CMDX_GOD

You have conveniently chosen to ignore my question there and now you’re spreading this FUD in other forums also. So let me ask you again

Realistically how is a team supposed to build out 3 whole apps and get them audited and tested without having any $. They didnt do a fundraise. If they don’t sell tokens, no one works for free. Not even you. So where is the money supposed to come from?

if you dont have a good answer for that, don’t come around spreading negativity towards a project that is actually shipping working products. I request @admins to block this guy for have no productive contribution but simply spreading FUD

1 Like