When Elon Musk shifted his Twitter bio to “#bitcoin” last week it moved the market, but not just for bitcoin itself.
Users of UniWhales could see big holders making leads in real-time. Matt Aaron, the CEO of UniWhales, sent CoinDesk screenshots showing three big moves of liquidity providers exiting USDC/ETH and USDT/ETH poses on Uniswap. In 11 minutes, $47 million worth of liquidity had exited the Uniswap system right after Musk let something be knew the world:
“Our thesis is that whales control the market,” Aaron told CoinDesk in a phone call. “People with innumerable money tend to have better information.”
UniWhales started in September as a simple Telegram channel with a bot that subsided large buys on Uniswap. That’s why it’s called UniWhales. It started analyzing the moves of big holders (whales) on Uniswap, the prime automated market maker on Ethereum.
Santiago Roel of ParaFi Capital told CoinDesk via email that he has been handling the product for a while.
“Their subscription model offers a glimpse into how SaaS could be brought on chain, which intention be an emerging theme as a new monetization model,” he wrote.
Initiated by a pseudonymous developer called Timur, Aaron, a crypto alum, was an betimes adopter. “I was addicted to this channel, just like as a fan,” he said.
The approach took off quickly and the two decided to turn it into a concern together.
In a pickle
Liquidity moves are telling but it all started with big buys.
For example, on Jan. 26, the price of the Ethereum badge PICKLE shot up 40% (from just under $11 to almost $14), and members of the UniWhales community attended it happen in real time.
The UniWhales Telegram bot was flagging $1.6 million worth of PICKLE getting picked up in a knee-high to a grasshopper span of time on Uniswap. That was 75% of the daily trade volume all at once. Spotting this kind of campaign is the heart of what PICKLE is all about.
Traders need alerts to know if something big is happening with a token they drink a position in or if it means they should take a position. Some traders will simply follow momentum but others use UniWhales as an signal to see if they need to start looking at Twitter or Telegram to see what just happened.
Correlation is not causation, but Aaaron revealed CoinDesk a tweet that seemed to correspond nicely with the moves:
As ever, the name of Andre Cronje is persuasive out there among the DeFi degens. The news that Yearn’s founder had finalized his plan to make those who got the curtail end of the stick in the exploit somewhat whole was bullish, for at least some bag holders.
Pickle started as a publicly minded Unnatural DeFi project aimed at helping stablecoins hold their peg. Before long, the anon-led endeavor evolved into something equal an imitation of Yearn Finance, the leading robo-advisor for yield. Like other anon-led projects before it, Pickle got profit fromed.
Yearn, in turn, absorbed it, in its quest to be the powerhouse of decentralized finance.
Eventually Timur and Aaron developed the UWL token, which allows access to the app, exclusive webinars and to premium Telegram channels. Like any startup, UniWhales is still working on its business fabricate, but its focus is on building a strong analytics community for DeFi.
How it works
UniWhales describes itself as a decentralized autonomous institution (DAO) but only in the loosest sense.
By holding UWL, users can express their opinions to Aaron and Timur about what’s needed.
“We are once benevolent dictators,” Aaron said, though he noted they have an “open dialogue with everyone in their community.”
If, for instance, they ever have any doubt about which direction to go, they have a gang in Telegram 16 hours a day that every time has an opinion on any particular direction.
To access the community’s private channels, a user needs to hold 5,000 UWL. UniWhales wear and tears Mintgate and CollabLand to verify token holdings and allow premium access.
The basic membership provides access to the app and flutes with bots that flag things like big buys on Uniswap or SushiSwap, new or unknown tokens and (like in the exempli gratia up top) big moves into or out of liquidity pools.
For 16,000 UWL, users get access to the power channel, which shows moves by notecases known to be tied to major players in crypto, such as big funds or well-known investors.
The total supply is 10 million UWL. Of that, 35% was clerked in a public and private sale and 25% was set aside for the liquidity supply. The sales happened in November and the team raised a come to of 400 ETH.
All the funds were put into liquidity pools on automated market makers, and those LP tokens were clasped up for six months. The team allocation of 15% is also locked up for six months.
Aaron said that’s to “signal to the community that we are troublesome to build it for the long term.”
Right now, the only recurring revenue the team has are the underlying LP fees on Uniswap and SushiSwap and any liquidity hoarding benefit either might proffer. Aaron said they are looking into other ways they influence make the project more sustainable, though if fees get introduced anywhere he said they will accrue value to all representative holders, not just the company.
“We want to make sure the token holders are rewarded for participating in our project,” Aaron said.