Table of Contents

White Whale

Keep the Peg.

Be the Whale.
Arbitrage Platform built on Terra
1
Table of Contents

Market Problems 3

Introduction 4

Features and Benefits 5

Architecture 6-7

Mechanics 8

Capital Flows 9

The WHALE Token 10

Governance 11

Tokenomics / Distribution 12

Team 13

Roadmap 14

Risks 15 - 16
Market Problems

Problem 1 Whales Wear Black Hats

The stereotypical whale is the villain of the crypto world. They are unprincipled and
price-agnostic. They will manipulate markets, shake you out, and short your project
to zero if it makes them more profit. We all hate whales, yet we all want to be one.
We resent whales mainly because their capital enables access to the highest margin,
lowest risk opportunities in the game. Early rounds, private sales, discounts, privile-
ges, market making, and arbitrage are all examples of what whales get to do and
little guys don’t.

In the Terra ecosystem, arbitraging UST back to peg is uniquely appealing to loyal
community members because not only does it yield market neutral profit, it also
serves the purpose of stabilizing the peg, making the ecosystem more secure and
robust. However, getting into arbitrage requires capital, technical knowledge, bot in-
frastructure, and market making skill…. in short, as of now, it’s strictly a whale’s game.

Problem 2 Keeping the Peg

Just this year alone, the crypto markets have seen:

Multiple severe corrections, including a 60% crash across the entire altcoin
market in a matter of hours, during which not one stablecoin was able to
perfectly keep peg.

More than one defi stablecoin project outright fail and go from millions and
even billions to zero in a matter of hours because their stablecoin lost peg.

The entire crypto market is acutely aware of the importance of stables keeping peg.
Simply put, if the stable cannot hold peg, the entire ecosystem will fail, and fail hard.
UST, being the most established algo stablecoin as well as having inherent value
as a yield bearing asset, is by far the best chance the crypto world has yet seen of
having a truly decentralized stablecoin. However, it would be naïve to think that it is
completely immune from losing peg. After all, this is crypto, anything can happen.

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Introduction

Just as Terra is not like your other blockchains, White Whale is not like your other
defi platforms. We believe that White Whale is a truly missional project. Our mis-
sion is clear: to decentralize the enforcement of the peg. Our vision is to create a
platform which would decentralize the enforcement of the UST peg and every syn-
thetic asset in the Terra ecosystem by providing the technical tools which allow all
users to participate and connecting them to arbitrage liquidity pools. By opening
up L1 seniorage arbitrage to the Terra community and empowering them to earn
delta-neutral profits while simultaneously keeping the peg we will make the entire
Terra ecosystem more secure, robust, and efficient.

White Whale will launch with 3 initial components: The Arbitrage Vaults, The Com-
munity Fund Vault, and the War Chest. In the beginning, our flagship vault will be the
UST Arb Vault. Users will deposit UST only into the Arb Vault, which arbs UST back
to peg via the level 1 seniorage method. Through governance, the community will
be able to introduce new arbitrage vaults to the platform to increase stability cove-
rage of the ecosystem. To provide some examples, proposals could be introduced
to create new vaults for arbing each of Terra’s 19 other stablecoins back to their res-
pective pegs, or perhaps more interesting, mAssets back to their underlying stock
or collateral. As every asset under the sun will eventually be Mirrored, the potential
for expansion is quite extensive. These strategies all serve the purpose of enhancing
Terra’s ecosystem as they are stabilizing the price of Terra assets across different
exchanges and liquid markets.

Eventually, the War Chest, which also serves as the vault for governance staking,
will become the primary feature of White Whale. A portion of the White Whale IDO
bounty will be used to bootstrap the War Chest as the initial deposit. Operationally,
1% of the yield captured on every arb vault will be sent to the War Chest as a tax.
Users may deposit WHALE tokens into the War Chest, which will arb the entire Ter-
ra ecosystem simultaneously and distribute the rewards to liquidity providers. This
provides an essential economic utility for the WHALE token on the platform as well
as incredible value capture.

More details on the War Chest to come.

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Features and Benefits

1 Immediate Profitability
The first moment of the first day White Whale goes live, the platform is expected to
be profit generating, which allows the distribution of real, consistent, and sustainable
rewards to all active contributors who have performed work in one way or another.

2 Delta Neutral Profits

For the simplest and cleanest possible user experience, depositors need only depo-
sit UST in the arb vault, they will not have to interact with LP tokens on the user end
of the platform, nor worry about impermanent loss.

3 Economic Utility
The WHALE token will have one of the most unique and essential utilities in all of
defi, acting as an over-arching utility token providing ecosystem stabilization fea-
tures. Users may deposit WHALE to the War Chest which will enable them to parti-
cipate in ensuring ecosystem stability in the entire Terra ecosystem simultaneously
via arbitrage.

4 Demand Pool for UST

As it is contemplated that large reserves of UST will be locked in our vaults, White
Whale will increase the overall macro demand of UST.

5 Secure the Terra Ecosystem

Not only will the capital in the UST arb vault serve the useful function as a barrier of
protection around the peg, but future arb vaults will have several other mechanisms
that support and stabilize Terra’s ecosystem, ultimately making it more efficient.

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Architecture

White Whale will launch with 3 initial components: The Arb Vaults, The Community
Fund, and The War Chest. All 3 components will leverage Anchor Protocol to op-
timize capital efficiency, and all 3 components will utilize WHALE tokens in some
manner to act as the dampener for volatility across the ecosystem.

Arb Vaults

White Whale War Chest

Community Fund

The Arb Vaults

The Arb Vaults are the main feature of the platform, the function of the Arb Vaults
is to allocated deposits to arbitrage UST and other Terra assets back to peg utilizing
the L1 seniorage method, thereby ensuring system stability.

The optimal amount of capital necessary for efficient arbitrage will not always be
equal to the amount of UST on deposit, especially during stable markets. Any capital
not being immediately utilized in arbitrage will be deposited into Anchor Protocol
and the aUST will be deployed to an optimized delta neutral yield farm, in order
maximize capital efficiency. The total rewards distributed to depositors of the Arb
Vault will be:

R = .99(Arbitrage Profits + Anchor Yield + aUST Optimized Yield Farm)

The Community Fund

The White Whale Protocol will assess small fees for transactions (deposits, wit-
hdrawals, etc…) Users will have the option to pay fees with UST or they can choose
to pay with WHALE tokens at a discounted rate. All of the protocol fees will be sent
to a vault which will act as the community fund. These funds can be drawn down by
the community through on-chain voting and can be used for the development and
enhancement of the platform as the community best sees fit.

The War Chest

The final component is the War Chest. The War Chest receives 1% of the yield from
each individual arb vault on the platform, and will be bootstrapped with initial sale
proceeds from the project WHALE token Pre-Sale.
Architecture
The Capital in the War Chest will be diversified among several Terra Assets. Users
will be able to deposit WHALE tokens into the War Chest to participate in maintai-
ning ecosystem stability, which entitles depositors to their respective portion of the
arbitrage yield of the vault. The War Chest will run arb bots that monitor all of the
assets in the Terra ecosystem simultaneously. When an opportunity is detected, ca-
pital is immediately deployed to that asset to execute the arbitrage. Therefore, the
WHALE token is the only asset that allows you to arbitrage the entire Terra Ecosys-
tem simultaneously from one vault.

The amount of WHALE tokens deposited in the War Chest will also determine the
amount of voting power each user has. The assets can be thought of almost like a
community-led stabilization fund, which is initially setup to enforce stability across
several assets simultaneously by arbitrage backed by deep liquidity pools. If the
community feels the War Chest is overfunded, they could submit a governance pro-
posal to draw down some of the funds for certain development or enhancement
purposes.

It is important to reiterate that the Vaults, Community Fund, and War Chest simply comprises an au-
tonomous smart contract deployed on the relevant blockchain network, operated directly by users
calling functions on it (which allows them to interact with other users and/or pool their own selected
assets in a peer-to-peer manner), and with no further control by or interaction with the original entity
which had deployed the smart contract.

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Mechanics

Users will deposit UST into the Arb Vault, the deposits will be used as liquidity re-
serves for bots to arb:

The bots in the arb vault will be programmed to execute 2 functions, 1 for
each of 2 scenarios.

The following assumes slippage of 0%. Each operation can take up to 6

seconds (the block time).

Depending on UST trading below or above 1 USD the sequential operations are:

1 UST trading below the peg:

Burn 1 UST to mint LUNA worth (1-spread-tax)$

Swap (1-spread-tax)$ worth of LUNA for (1-fee)*(1-spread-tax)/k UST

The trade is profitable if k is small enough to compensate for spread, tax and fee for
the liquidity providers, i.e. if k < (1-fee)*(1-spread-tax).

Risks

i. The price of UST can increase before the swap operations

ii. The price of LUNA can decrease before the swap operation

2 UST trading above the peg:

Mechanics
Swap 1 UST for (1-fee)*k$ worth of LUNA

Burn (1-fee)*k$ LUNA to mint (1-fee)*(1-spread-tax)*k$ UST

The trade is profitable if k is big enough to compensate for spread, tax and fee for
the liquidity providers, i.e. if k > 1/((1-fee)*(1-spread-tax)).

Risks

i. The price of LUNA can decrease before the mint operation

Capital Flows

User withdraws

User Deposits

yield auto
compounds

Arb Vaults

trx fees 1% yield from

each arb vault

Community Fund
Stake WHALE War Chest

Principle Accumulates
Arb Terra Ecosystem

Interest

Yield paid to Stakers

Buy WHALE

Principle Accumulates

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The WHALE Token

The native digital cryptographically-secured fungible token of White Whale (WHALE

token) is a transferable representation of attributed governance and utility functions
specified in the protocol/code of White Whale, which is designed to be used solely as
an interoperable utility token on the platform.

The WHALE token also provides economic incentives which will be distributed to
encourage users to contribute to and participate in the ecosystem on White Whale,
thereby creating a mutually beneficial system where every participant is fairly com-
pensated for its efforts. WHALE token is an integral and indispensable part of White
Whale, because without WHALE token there would be no incentive for users to
expend resources to participate in activities or provide services for the benefit of
the entire ecosystem on White Whale. The tokenomics are designed as such that
additional WHALE tokens will be awarded to a user based on their actual usage,
activity and contribution on White Whale and/or proportionate to the frequency
and volume of transactions while holders of WHALE tokens which do not actively
participate will not receive any additional WHALE token incentives. We believe we
have designed a native token that will have one of the most unique and impactful
use cases in all of defi. Here are the key elements of our token model:

1. Users will be given the option to pay platform fees in WHALE token, which will entitle
the user to a discount, thereby incentivizing users to acquire WHALE tokens.

2. The x-factor utility for the WHALE token is in the War Chest, where the WHALE token
will function as an over-arching utility token providing ecosystem stabilization features.
All WHALE token liquidity provided by users will be held in the War Chest Vault, which
will monitor the entire Terra ecosystem for pricing inefficiencies, and once such issues
are detected, WHALE token is immediately deployed as the medium of exchange to
execute the arbitrage to enforce Terra ecosystem pegs. Therefore, the WHALE token is
the only token that provides access to the entire Terra ecosystem simultaneously from
one vault.

3. There is 10% allocation of WHALE tokens to be distributed as loyalty rewards to users

who utilise and support the platform in its vision by providing liquidity to help enforce
Terra ecosystem pegs, and/or participate in the governance process. The exact incen-
tive model will be announced once finalised.

WHALE token is a functional utility token which will be used as the medium of exchange between
participants on White Whale in a decentralised manner. The goal of introducing WHALE token is to
provide a convenient and secure mode of payment and settlement between participants who interact
within the ecosystem on White Whale, and it is not, and not intended to be, a medium of exchange ac-
cepted by the public (or a section of the public) as payment for goods or services or for the discharge
of a debt; nor is it designed or intended to be used by any person as payment for any goods or ser-
vices whatsoever that are not exclusively provided by the issuer. WHALE token does not in any way
represent any shareholding, participation, right, title, or interest in the Company, the Distributor, their
respective affiliates, or any other company, enterprise or undertaking, nor will WHALE token entitle
token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not
intended to constitute securities in Singapore or any relevant jurisdiction. WHALE token may only be
utilised on White Whale, and ownership of WHALE token carries no rights, express or implied, other
than the right to use WHALE token as a means to enable usage of and interaction within White Whale.
Governance

Governance of White Whale is especially important as it is the steering deck of the

platform. WHALE token will allow holders to create and vote on on-chain gover-

1 The community, at any time, can propose and vote on a draw down of funds
from the Community Fund for development work or certain initiatives, but the
voters must weigh the benefits of drawdown against the risk of loss of initial
deposits in the fund.

2 Community members will be encouraged to initiate community discussions on

a forum page prior to submitting a governance proposal.

3 Governance proposals will require a deposit of WHALE tokens to submit, reim-

bursed upon passing of proposal.

4 Additional WHALE token rewards will be given to those who participate in votes
in order to encourage engagement. These rewards will be drawn down from the
Community Fund.

5 No cool down period for withdrawing tokens staked for governance.

6 Perhaps most importantly, White Whale will continue to partner with new pro-
jects being built on Terra to discover and implement the new best practices of
community governance as we believe these systems are currently still being
developed and experimented with.

The right to vote is restricted solely to voting on features of White Whale; it does not entitle WHALE
token holders to vote on the operation and management of the Company, its affiliates, or their assets
or the disposition of such assets to token holders, or select the board of directors of these entities, or
determine the development direction of these entities, does not constitute any equity interest in any
of these entities or any collective investment scheme; the arrangement is not intended to be any form
of joint venture or partnership

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Token Distribution

Total Supply
1 billion initial supply

Distribution
3% airdrop 15% Team 5% Advisors 10% Private Purchasers
10% LP Incentives 20% Treasury 10% Pre-Sale Purchasers
10% Community IDO Event 7% Ecosystem Partners 10% Deposit Incentives

3%
10%

15%

7%

10%
10%

5%

10%

10%

20%

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Team

Founder
Sebastian Jer

Smart Contract Development

Lars Lubkoll

Core Developer
Ryan Gordon

Core Developer
Robin Bissch

Graphics/Marketing
Julien Blouet

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Roadmap

July 2021
Litepaper

August 2021
MVP – Next Top Blockchain Start-Up Hackathon

We are here

November - December 2021

Test net, live arb testing

January 2022
Public Sale

January - March 2022

Main net launch

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Risks

White Whale is currently in the initial development stages and there are a variety
of unforeseeable risks. You acknowledge and agree that there are numerous risks
associated with acquiring WHALE token, holding WHALE token, and using WHALE
token for participation in White Whale. In the worst scenario, this could lead to the
loss of all or part of WHALE token held. IF YOU DECIDE TO ACQUIRE WHALE
TOKEN OR PARTICIPATE IN WHITE WHALE, YOU EXPRESSLY ACKNOWLEDGE,
ACCEPT AND ASSUME THE FOLLOWING RISKS:

Uncertain Regulations and Enforcement Actions: The regulatory status of

White Whale, WHALE token and distributed ledger technology is unclear
or unsettled in many jurisdictions. The regulation of digital assets has be-
come a primary target of regulation in all major countries in the world. It is
impossible to predict how, when or whether regulatory agencies may apply
existing regulations or create new regulations with respect to such techno-
logy and its applications, including WHALE token and/or White Whale. Re-
gulatory actions could negatively impact WHALE token and/or White Whale
in various ways. The Company, the Distributor (or their respective affiliates)
may cease operations in a jurisdiction in the event that regulatory actions, or
changes to law or regulation, make it illegal to operate in such jurisdiction, or
commercially undesirable to obtain the necessary regulatory approval(s) to
operate in such jurisdiction.

Inadequate disclosure of information: As at the date hereof, White Whale is

still under development and its design concepts, consensus mechanisms, al-
gorithms, codes, and other technical details and parameters may be constant-
ly and frequently updated and changed. Although this whitepaper contains
the most current information relating to White Whale, it is not absolutely
complete and may still be adjusted and updated by the White Whale team
from time to time. The White Whale team has neither the ability nor obli-
gation to keep holders of WHALE token informed of every detail (including
development progress and expected milestones) regarding the project to
develop White Whale, hence insufficient information disclosure is inevitable
and reasonable.

Failure to develop: There is the risk that the development of White Whale
will not be executed or implemented as planned, for a variety of reasons,
including without limitation the event of a decline in the prices of any digital
asset, virtual currency or WHALE token, unforeseen technical difficulties, and
shortage of development funds for activities.
Security weaknesses: Hackers or other malicious groups or organisations may
attempt to interfere with WHALE token and/or White Whale in a variety of
ways, including, but not limited to, malware attacks, denial of service attacks,
consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore,
there is a risk that a third party or a member of the Company, the Distributor
or their respective affiliates may intentionally or unintentionally introduce
weaknesses into the core infrastructure of WHALE token and/or White Whale,
which could negatively affect WHALE token and/or White Whale. Further,
the future of cryptography and security innovations are highly unpredictable
and advances in cryptography, or technical advances (including without limi-
tation development of quantum computing), could present unknown risks to
WHALE token and/or White Whale by rendering ineffective the cryptogra-
phic consensus mechanism that underpins that blockchain protocol.

Other risks: In addition, the potential risks briefly mentioned above are not
exhaustive and there are other risks (as more particularly set out in the Terms
and Conditions) associated with your participation in White Whale, as well
as acquisition of, holding and use of WHALE token, including those that the
Company or the Distributor cannot anticipate. Such risks may further ma-
terialise as unanticipated variations or combinations of the aforementioned
risks. You should conduct full due diligence on the Company, the Distributor,
their respective affiliates, and the White Whale team, as well as understand
the overall framework, mission and vision for White Whale prior to participa-
ting in the same and/or acquiring WHALE token.

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Table of Contents

White Whale