Whitehole finance has recently been in hype due to its crew3 quests and private testnet on Arbitrum. The private testnet launched yesterday and users are already testing out various features of the dapp. So here is an informative, compressed all in one article on the project and its comparison with some of the defi projects of the same type.
WhiteHole is a lending/borrowing platform that will launch on Arbitrum. Their public testnet was running on Klaytn testnet a few hours ago. Now, they have launched testnet on Arbitrum. Users are able to lend both assets and NFTs they hold as collateral.
The main thing to look out are taxes on the platform. One tax is Price Protection Tax, which by the name is clear. It is a tax that helps in stabilization of the APRs of the lending pool. It is charged when a user claims their rewards. Another tax is the Claim Task which is charged every time a user claims their reward. If you don’t want to pay the taxes, you can try to increase your ecoscore to green and then you will get a discount of 100 percent on these tasks. Ecoscore is a score assigned to users based on their contribution to the ecosystem.
The project aims to remove the traditional problems from the defi lending crypto space. Now, in platforms like Curve, all users get the same APR despite their different contribution. Staking yield, farming and platform rewards are all the same for all users. So, users who help grow the ecosystem and keep it stable are rewarded the same as any other users. But using ecoscore helps track user activity and reward them accordingly. This will encourage more user activity and automatically eliminate common problems like Liquidity Crunch, Sudden token selling, etc. One thing I didnt mention is that users with higher Ecoscores get higher APRs. If you dont believe it, you can go to the testnet dapp and try it out.
The project looks solid and has made huge developments in the past few weeks. NFA and DYOR. Also check out the testnet dapp if you decide to get involved in the project as it will give you an idea on the building phase of the project.
Thank you for reading.