Review made by mickyscofield at May 3, 2021, 1:15 p.m.
Whiteheart is an on-chain hedging protocol built on top of the Hegic protocol. The core part of the hedging protocol is a new financial primitive called hedge contract. Hedge contract is a system of Ethereum smart contracts that can automatically conduct the process of hedging users’ holdings’ market value. An hedge contract can automatically be bought on the ‘at-the-money’ put option contract otherwise known as (ATM) on the user’s behalf whenever the user acquires an asset on a decentralized exchange (DEX). Hedging with ‘at-the-money’ put option means that the strike price of an option at the moment of protecting an asset’s value will be equal to the market price of the asset with a potential <1% spread. Hedge contracts utilize liquidity which is pooled by liquidity providers on non-custodial smart contracts. Liquidity providers earn fees paid by hedge contracts users in case the value of assets will not decrease. Liquidity providers also act as the value downside insurance sellers who are pooling their funds on smart contracts for sharing the potential fees on selling this type of insurance represented as ATM put options. The Solutions Whiteheart is trying to solve in disruptive finance is quite convincing as it helps DeFi users to protect USD value of their cryptocurrency holdings in Ethereum (ETH) and Wrapped Bitcoin (WBTC). The essential or core part of the Whiteheart is hedge contracts. Therefore, a rating of (Solution “c+”) is valid. Whiteheart Finance is a decentralized protocol that enables users to protect their investments in WBTC or ETH over a 14-28 day time period. This is powered by smart contract paired with a liquidity pool to provide the difference between an initial amount of $10,000 worth of ETH and the difference if it goes down to $5,000. The differential $5,000 would be paid out to the user returning 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 $WHBTC. A quick view of how Whiteheart works is succinctly shown this; a user buys ETH or WBTC on Uniswap via the Whiteheart Finance interface. The hedge contract by Whiteheart automatically protects the value of user’s ETH or WBTC with at-the-money put options. Furtherance to this, the value of ETH or WBTC will be protected from any loss in USD during the 14 days period. Hence, if the price goes down, the user will be able to exercise hedge contract and receive the USD difference between the “buy price” and “current price”. The user will then receive the net USD difference in ETH or WBTC to his/her Ethereum address and will finally be able to use funds to make new trade with the hedge contract. For an example, The user buys 1 ETH for the price of 522.66 USDC using Whiteheart Finance. They can see the Hedge Contract option is enabled and also hedge contract price (20$ or 0.0328 ETH which is $0.0595 per hour), strike price ($522.66 ) and hedging period (14 days). So If the price of ETH goes lower than $522.66 in the next 14 days the user will be able to exercise the hedge contract and receive the USD difference between the ‘strike price’ and ‘market price’ at the moment of exercising it. In the long term, the project is worth staking with a vision that is grand and a potential net effect that could save lots of money for DeFi traders and investors. (Validity rating of “b” ) is a good one. WHITE token provides it’s holders with a right to receive a share of it’s fees generated by the protocol. The total supply is 8,888 WHITE. There is no minimum amount of WHITE that can be staked. Fees are distributed pro rata among the staked WHITE tokens. The initial distribution breakdown of fees is: 30% of fees distributed among the WHITE tokens staked. 30% of fees are distributed among Whiteheart liquidity providers, 20% fees are distributed among the HEGIC staking lots (10% to the WBTC lots and 10% to the ETH lots). 20% fees are further distributed among HEGIC liquidity providers (10% go to WBTC pool LPs and 10% go to ETH pool LPs). A rating of (Equity “b”) is justifiable owing to the nice job the team is doing. Summarily, the token model for Whiteheart shows as below; 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. Whiteheart is an ERC20 Token created by deploying smart contract on Ethereum blockchain and has a total supply of 8,888 WHITE. It registered all time high of $2,914.48 USD on January 08, 2021 and all time low of $1,082.11 USD on December 30, 2020. It is currently available to trade on Uniswap, MXC, Hotbit and Gate.io List of cryptocurrency exchanges. The user can earn a share of fees generated by the protocol by holding WHITE tokens. The fees are distributed proportionally among the WHITE token Stakers and Liquidity Providers (LPs). There is no minimum amount of WHITE that can be staked. The user can earn a share of fees generated by the protocol by holding WHITE tokens. The fees are distributed proportionally among the WHITE token Stakers and Liquidity Providers (LPs). There is no minimum amount of WHITE that can be staked. The initial distribution The advantage of this analysis is that the service is useful firstly to folks who trade $ETH and $WBTC. Also, there is no room for insane vesting schedules. That’s a plus in it’s right. Whiteheart team is active in discord and Twitter which is good. Coupled with smart folks who are involved in figuring out how to build an ecosystem around WHITE and finding out how it can thus be integrated with other protocols and platforms, that of course is worthy of mention and commendation by the Whiteheart team. Although, pseudonymous appearance in the team will prove a difficulty for some people particularly investors to trust. I read Whiteheart’s reason for having an anonymous female developer and to be candid, the backlash on investors is really unworthy. In the light of this, a rating of (team “b+”) is justifiable. Whiteheart (WHITE) contract address is shown as seen here: 0x5f0e628b693018f639d10e4a4f59bd4d8b2b6b44 In conclusion, sequel with the Svetrating scale adopted, the result shows thus: Solution, Validity, Equity and Team gives the following; c+ / b / b / b+