Whirlpool
Litepaper
Issues Yield Farming
When you invest in cryptocurrency DeFi, earning high-yield income can be complex with tasks like buying tokens, voting, and monitoring changes. Staying updated requires checking various sources, turning your investment into a chore. Whirlpool simplifies this by managing DeFi intricacies for you, making passive income easy and rewarding.
Profitable yield farming has its challenges:
Locking governance tokens for long periods can lead to illiquid funds and diminishing value.
Fluctuating interest rates can impact borrowing and lending.
Weekly votes and monthly proposals can influence token value and farming returns, making the process complex.
Issues Tokenomics
In many cryptocurrency projects, especially in yield farming, tokens often face ongoing inflation despite having a limited supply. Mechanisms like staking and vesting schemes may delay, but not prevent inflation.
Token allocations usually do not favour of investors due to high allocations for farming, staking rewards, marketing, liquidity, partnerships, advisors and the team. While these allocations aim to grow the project, they often result in token devaluation.
As the market supply continues to increase, inflation occurs. When demand is lower than supply, token prices drop, creating a negative cycle of falling prices, reduced yields, and diminished liquidity.
Whirlpool Managed Funds
Whirlpool managed funds goes beyond basic investments. I conduct research, manage risks, and leverage DeFi tools like lending and staking for optimal returns. Strategies prioritize on long-term cryptocurrency growth, adapting to market changes.
Operations will commence with zero-base cost for sustainable growth.
Whirlpool Tokenomics
To enhance Whirlpool's tokenomics, I've devised an unique approach for the WHIRLPOOL token:
Base Treasury:
All WAVES received go to the treasury and are invested in various DeFi protocols.Profit Distribution:
20% are invested in the surplus treasury in other DeFi investments than the base treasury.
80% is distributed in WAVES of which:80% to WHIRLPOOL liquidity providers.
20% to project owner for operational expenses.
When profit yield is below WAVES staking yield, then the 80% distributed in WAVES:
100% to WHIRLPOOL liquidity providers.
0% for operational expenses.
Buyback Mechanism:
If WHIRLPOOL market price is 5% below NAV, buybacks will be done by investing in WHIRLPOOL AMM.
Pros
Investor focus:
WHIRLPOOL tokens are exclusively allocated to investors.Mutual interest:
Project owner and token holders interests are aligned.Token price backed by treasury:
Backs token price up to 95% of treasury value.Diverse strategies:
Different types of investments and strategies for diversification and better risk adjusted returns.
Cons
Long term holding:
WHIRLPOOL token is for long term holding, not ideal for quick trades.High risk:
Cryptocurrencies are considered high risk investments, DeFi brings extra risks.
