WHALE CLUB — Details

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Dear DefHolder,

We are thrilled to launch our first two products in a few weeks, especially our highly anticipated Whale Club. As announced last week, this product will offer its users an exciting opportunity to invest in projects like Whales. Indeed, it will combine the power of the decentralization achievable on the blockchain with a traditional financial tool called SPAC (Special Purpose Acquisition Company).

As we are getting closer to the launch of our products, we will now present you the specifics and detailed operating process of our Whale Club.

WORKING PROCESS

DefHold — Whale Club
DefHold — Whale Club

Initially, the Whale Club will offer 3 vaults as follows:

  1. Small cap vault:
  • Minimum investment: USD 1,000
  • Minimum uniswap liquidity of the underlying project: USD 100,000

2. Mid cap vault:

  • Minimum investment: USD 6,000
  • Minimum uniswap liquidity of the underlying project: USD 500,000

3. Large cap:

  • Minimum investment: USD 15,000
  • Minimum uniswap liquidity of the underlying project: USD 1,000,000

To invest into one of the vaults, users will be required to:

  • Pay their investment amount in USDT (these funds will used to buy the underlying assets)
  • Pay an entrance fee in DEFO amounting to 5% of their investment
  • The vault will accept contributions during 48 hours

Upon completion of the contribution period, investors will receive secondary tokens representing their share of the vault, similar to LP tokens received by contributing to a liquidity pool.

As soon as investors have received their secondary tokens, they will be granted access to the private area associated with each vault. Within this private area, each investor will be allowed, for a period of 72 hours, to propose projects in which they want the vault’s assets to be invested.

Once the proposal period has ended, a voting period will begin and last 24 hours. During this period, each investor will be able to vote for his preferred project, with more or less weight depending on his initial investment. Thereafter, the project with the most votes will be the one in which the vault funds will be invested.

Upon selection of the investment, the total funds of the vault will be split into three buy vote poll as follows:

  • Each buy vote poll will correspond to 1/3 of the total amount invested into the vault;
  • Once a buy vote poll reaches 50% of the voting rights, it will proceed the buy-transaction by market buying the underlying asset;
  • Whether after 30 days, a buy vote poll did not get 50% of the voting rights, the funds will be refunded to the investors;
  • Once a buy-transaction is approved, the buy vote poll will be replaced by a sell vote poll;
  • The number of tokens bought through the 1st buy-transaction will be the ones sold in the 1st sell-transaction ;
  • Once a sell vote poll reaches 50% of the voting rights, it will sell the corresponding amount of tokens of the underlying assets;
  • Once a sell-transaction is proceeded, 5% of the profits will be used to market buyback DEFO and distribute them to stakers/farmers (95%) and to the developer fund (5%);
  • After each sell-transaction, the remaining 95% of profit + the initial investment will be sent back to the investor.

WHALE CLUB BENEFITS

  • Small investors can benefit of the buying power and experience of whales. Moreover, they will not suffer from Whale dumping as their assets will be sold at the same time as those of the whales.
  • Whales will benefit of additional buying power and will be able to discover innovative projects thanks to the proposals of other investors.
  • Decentralization allowing every investor to propose and vote for the targeted investment as well as the entry and exit price without any centralized authority or fund manager.
  • Cost cutting as there will be no middleman or asset managers to be remunerated. All features and processes will be handled by smart contracts.
  • Entrance fee and profit-sharing will benefit all DEFO holder as it will increase the buying pressure on the token and offer additional revenues to stakers/farmers.

DefHold is a non-inflationary DeFi ecosystem aiming to provide yield generating investments’ strategies to long-term crypto holders

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