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Five pictures to see how Whiteheart. Finance works

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DeFi users are protected by the decentralized Option protocol.

Based on Hegic's hedging agreement Whiteheart.Finance completed its first Joint Curve Public Offering (IBCO), the token was raised by Hegic founder Molly ina private group of 233 people organized by cross-platform instant messaging tool Keybase. In general, Whiteheart.Finance will purchase an equal amount of hedged options for each transaction made on the platform to protect the dollar value of the crypto asset against a decline for 14 days, using the options to protect the users of the decentralized trading platform.

1. Users will use the Whiteheart. Finance interactive page in the same way as Uniswap.

2. Each time you buy the ETH or WBTC hedging contract through Whiteheart.Finance, you will automatically protect the value of your ETH or WBTC with the equivalent put option.

If over the next 14 days, the price is below $522.66. The user will be able to exercise the hedging contract and receive the difference between the exercise price and the market price at the time of exercise.

3. This means that using Whiteheart.Finance to trade ETH or WBTC will theoretically protect the user against any dollar losses for 14 days.

4. If the price falls, the user can execute the hedged contract and get the difference in dollars between the purchase price and the current price.

5. The difference after execution of the contract will be sent to the ethereum address of the transaction.

Tokens model

The initial price for IBCO WHITE is 1& NBSP; WHITE = 1.71 ETH, about $1,077 at launch. At the same time, WHITE has a total of 8,888 tokens, and the project side said that the team's tokens would not be sold until the main website went live. According to the official Twitter account, 88 WHITE coins will be distributed to private group members who participate in IBCO and will not be selling tokens until the main web site launches in 2021.

According to the WHITE Token holder, the WHITE Token holder can receive a 30% commission share of the Whiteheart.Finance agreement, and the remainder, 30%, 20% of the Staking Lot sent to HEGIC and 20% to HEGIC liquidity providers.

conclusion

Automatically add a option for every deal is undoubtedly an effective insurance service, as well as the underlying protocol Hegic bring more volume and the fee into, but Whiteheart. Trade finance is not suitable for heavy chain users, because each trade to pay the Gas fee cost higher premium, for heavy users, this will be a big cost. Multiple trades also result in the actual put option being held higher than the market value of the fund. At the same time, as the project has just released tokens, some details are still not released, to be discussed.

In general, if Whiteheart. Finance is regarded as the traffic entry of transactions on the chain, it will be a good choice for users to buy enough ETH or WBTC from Whiteheart before massive transactions on decentralized platforms and obtain the put option as the protection. At the same time, if Whiteheart can add leverage to it, users can always use a small amount of money for a 14-day "renewal", which will also provide Whiteheart with more possibilities.