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
- 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.
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.
- 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.
- 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.
- 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.
- 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.