Whale Match (P2Pool)

An overview of Whale Match: MYSO's peer-to-pool subsystem

Whale Match is a peer-to-pool (P2Pool) system that supporst the creation of a convertible debt marketplace where larger borrowers can get matched with a pool of lenders. Projects and DAOs can use the system to unlock the borrowing power their treasury tokens by using them as collateral to borrow stablecoins, for example, and structure the loan with a conversion feature, allowing lenders to participate in the upside of the collateral token.

To mitigate the collateral price risk associated with volatile altcoins, borrowers can provide high over-collateralization degrees and attractive conversion ratios, both of which are fully customizable and can be adjusted for each loan case individually.

For example, assume a DAO with 1,000,000 XYZ treasury tokens currently worth $10,000,000 is looking to borrow $1,000,000 in USDC to strengthen secondary market liquidity for its own token for the next six months. It could structure a convertible loan with a target loan amount of $1,000,000 and an LTV of 10%, giving lenders the right—but not the obligation—to receive 100,000 XYZ tokens instead of receiving the loan amount back in USDC. At the inception of the loan, these tokens would be worth $1,000,000, but if the token price were to increase, they would be worth more than the originally loaned amount.

This optionality allows lenders to participate in the upside of the collateral token. The peer-to-pool system has a protocol fee switch, so if a borrower secures $1,000,000 in loan subscriptions with a 1% protocol fee, the protocol earns $10,000 upon successful loan initiation.

Additionally, the peer-to-pool system includes an arranger role that can help matchmake between prospective borrowers and lender communities. The arranger can make loan proposals and onboard both borrowers and lenders to the MYSO protocol, charging an arranger fee for this service. To continue the above example, if an arranger successfully matchmakes a loan proposal with $1,000,000 in loan subscriptions and charges a 2% arranger fee, they would generate $20,000 in arranger fees. This creates strong incentive alignment between arrangers and the MYSO community.