Prop 32: Proposal to deploy White Whale dApp on Comdex

We are White Whale and are proposing 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 over 8 governance props.  

The code is hosted and maintained here: https://github.com/White-Whale-Defi-Platform/migaloo-core. 

Preface:
This proposal serves as a signaling proposal for the eight remaining proposals we will upload and upload of the first contract the Vault Factory. If you vote “YES” here,  please also vote “YES” for the other proposals referencing this signaling proposal since our application consists of eight smart contracts. This high number of proposals is required because the blockchain can only process one smart contract per proposal.  

State of the Art in DeFi.
Since liquidity in decentralized finance (DeFi) is fractured and price movements do not propagate to other exchanges or blockchains, price disparities occur across all ecosystems. So-called arbitrageurs provide market stability by taking advantage of price inefficiencies and making trades that offset each other to capture profits. In other words, arbitrageurs try to realize market price disparities by buying a cheap token on one market and selling it on another for a higher price. Typically, this requires high capital and automated trading systems. Since the barrier to entry for this yield-generating strategy is very high, large institutions and already resourceful entities are profiting the most. Small investors typically don’t have these resources and cannot utilize this strategy. 

Background on White Whale 
A little over a year ago, we founded White Whale to empower small market participants and democratize arbitrage opportunities for everybody. Based initially on Terra Classic, we have pivoted our focus from a simple application to becoming the first Interchain Protocol in the IBC Ecosystem.  

White Whale’s Interchain Liquidity Protocol
Our Interchain Liquidity Protocol primarily consists of the Interchain Command and Liquidity Hubs. Liquidity Hubs form the foundation of our protocol. They consist of the 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. Vaults allow users to take uncollateralized loans they need to pay back in the same transaction. Thus, they enable developers to build automated arbitrage trading systems without capital requirements.  

What this partnership will enable: 
1. Local Arbitrage
We will deploy our Liquidity Hubs consisting of BFPs and Flash Loan Vaults on Comdex. The BFPs are a reference price to Comdex’s primary DEX (cSwap). When a large 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, trade the token on cSwap against our pools, and make a risk-free profit. The additional trading activity will significantly increase volume on cSwap, leading to high rewards for liquidity providers and ultimately attracting even more liquidity into the Comdex ecosystem.
2. Liquidations 
3. The White Whale arbitrage infrastructure will enable more efficient liquidations on Commodo. It will free up the idle capital of Liquidators and create new non-inflationary yield sources for the ecosystem.
4. Democratizing Arbitrage, liquidations & market making 
Typically, only sophisticated and capital-rich entities can execute the above-described mechanisms. Thanks to White Whale, any DeFi participant on Comdex can profit from these market-making strategies by simply providing liquidity to our pools. 
5. 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, thus satisfying the demand on Comdex. 
6. 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 set up pools wherever our Liquidity Hubs are present.
7. Keep the peg of the stablecoins 
Last but not least, White Whale will enable broader market coverage for CMST and help stabilize the stablecoin using its arbitrage infrastructure.  

Grant 
With this proposal, we are also applying for a deployment grant based on the following milestones:
Proposed Long-term Compensation 
250.000 CMDX token
- 25% vested on marketing and successful mainnet launch of at least two mirrored pools (ATOM/CMDX + CMDX/CMST) and two flash loan vaults (CMST + ATOM) on Cswap DEX.
- 25% vested on the creation of the 2-stableswap pools (CMST/axlUSDC on Terra & Comdex).
- 50% vested quarterly for two 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. The Comdex Community can request other AMM pools based on their needs. 

If passed, the proposal will upload our first smart contract: the Vault Factory. Further, White Whale will receive the grant as soon as White Whale reaches the milestones mentioned above. 
Voting
- By voting YES on this proposal, you agree that White Whale should upload the smart contracts of the White Whale Liquidity Hub and that White Whale will receive the grant based on the “proposed long-term compensation.”
- By voting NO on this proposal, you disagree that White Whale should upload the smart contracts of the White Whale Liquidity Hub and that White Whale will receive the grant based on the “proposed long-term compensation.” Further, you want to burn the deposit of this proposal.
- By voting ABSTAIN, you decline to give an opinion on the proposition.