Whiteheart Finance Memo

Whiteheart Finance Memo

By jsev | NFT Matrix | 14 Apr 2021


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What: Whiteheart Finance is a decentralized protocol to enable a user to protect their investment in WBTC or ETH over a 14-28 day time period. This happens using a smart-contract paired with a liquidity pool to provide the difference between say an initial amount of $ETH worth $10,000 and the difference if it goes down to $5000. The differential ($5,000)would be payed out to the user + the diminished $ETH, retaining their initial USD value in $ETH (So payout is $5000 USDC, $5000 $ETH after the drop because the initial value of $ETH was $10,000). There is a price for this protection, 9.9% for $WHETH and 6.9% for $WHBTC.

 

Why: To provide tools which enable limited downside in USD terms if used correctly.

 

Product:

 

$WHITE staking. In return the fee described above will go to staked holders.

 

$USDC Fees Distribution

 

  • 30% distributed among the $sWHITE (staked $WHITE aka $sWHITE) holders

 

  • 30% distributed among the $USDC hedging pool liquidity providers

 

  • 20% distributed among the $HEGIC staking lots holders

 

  • 20% distributed among the Hegic pools liquidity providers

 

Token Model

 

Circulating supply: 8,888

Max supply: 8,888

Circulating Market Cap: $24,720,375

Fully Diluted Value: $24,720,375

 

Token Distribution:

 

Token fundraising was completed by a private keybase group of 233 people organized by Molly Wintermute. The initial price of WHITE after the completion of the IBCO was $1,077. 88 WHITE was distributed to private group members who participated in IBCO and held through mainnet launch.

 

Audit and Source Code: https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-Whiteheart-v1.0.pdf

 

Team (pseudonymous):

Analysis:

Pros:

  • The service is useful for folks who trade $ETH and $WBTC.
  • No insane vesting schedules
  • Team is active in discord and twitter. Smart folks are involved in figuring out how to build an ecosystem around $WHITE and finding out how it can integrate with other protocols and platforms.

 

Cons/Risks:

  • Product Market fit is still being validated.
  • Pseudonymous team is difficult for some people to trust.
  • The value prop can be obfuscated by the lack of knowledge around options.

 

Verdict:

Innovation: 8/10

Tokenomics: 10/10

Team: 9/10

Risk: Low Medium High

 

This project is worth staking for the long term. The vision is grand and the potential net effect of the protocol could save lots of money for defi traders and investors.

 

BONUS founder interview (with Molly Wintermute):

 

What happens if WHITE doesn't find product market fit?

 

z toughest thing is 2 help critical mass of DeFi & crypto users 2 understand that they don't know what will happen in markets 2morrow. in z first year of buidlin' Hegic i've witnessed that 80%+ of all put options (protective puts used in hedgin' purposes) r only acquired after z market has already crashed

 

Whiteheart is a way 2 automate this process on users behalf. coz we're all people & emotions won't let 9 of 10 us 2 think abt hedgin' wen market is on z way up. let's don't forget 2013-2015 & 2017-2020 wen crypto markets have crashed -80% & been on its lows during long years. as long as people won't like 2 lose money in markets, Whiteheart will find its place

 

Why are the tokenomics designed the way they are?

 

Whiteheart is a gentle fork of Hegic. that's why 40% of fees gener8ed by Whiteheart will b distributed among z Hegic staking lots holders (20%) & liquidity providers (20%). 30% of fees r distributed among WHITE tokens staked. 30% of fees r distributed among Whiteheart liquidity providers. this is z very first iteration of token economics. we'll see how it works in 2021-2023

 

Do you think long term holders of protocol tokens are any better than scalp traders?

 

i'm not buidlin' anything in order 2 make any1 rich. if some1 naively believes that i'll do anything 2 make numba go up, they can go fuck themselves. usually these r useless people & short-term flippers who want 2 gamble with random shit they buy on a daily basis. buyin' a coin on a DEX doesn't make u a community member. efforts & hard work do

 

Do you think Defi has staying power on the Ethereum blockchain?

 

i do think that if demand side is x100 larger than z supply side on layer one, this problem is understandable & solvable. layer 2 solutions on ethereum might change everything 4 good. blockchain is jst a technology. if ethereum will b worse than anything else in z next 2-4 years, devs will start migratin' 2 other chains. ethereum is OK now

 

Have you had a lot of backlash due to being an anonymous female dev?

 

i’m thinkin’ of it as of holdin’ a global scale experiment on how humanity reacts 2 a solo-female-founded protocol which has nothing else but one person & code behind it. if i needed some1's sympathy, i'd rather open Tinder app than code Hegic & buidl' z protocol. coz protocol's traction should speak 4 itself. i don't care what random twitter heads think abt me, no matter how iNfLueNtiAL they think they're

 

Do you think defi can act as a long-term catalyst to change power dynamics with the US and the rest of the world?

 

DeFi has less than a million users worldwide. it won't change a thing if its products won't become mainstream. and i'm not talkin' abt mainstream apps like Coinbase which is cool app but it doesn't change a thing in z universe coz u can jst buy & sell stuff there as in TradFi. however if one or two truly unimaginable business models will emerge & gain millions of users in z next 5 years, this might b z first "proof of work" of DeFi

 

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