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Wraith Bank Security Report

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Wraith Bank Security Report

Over my time developing and working on Wraith Bank, I’ve noticed the flaws in the crypto industry and the barriers to mass adoption. I’ve seen multiple rug pulls that have totaled a loss for the…

Rugs Everywhere

Over my time developing and working on Wraith Bank, I’ve noticed the flaws in the crypto industry and the barriers to mass adoption. I’ve seen multiple rug pulls that have totaled a loss for the users who participated of around $400,000. That’s just from what I’ve personally seen.

I’ve talked it over with the team, and truthfully, we’ve identified two things in order to achieve our vision. Wraith Bank wants to perform the same functions as a big bank. Create a reserve currency for the Fantom Chain (and hopefully more). Incubate and invest in new protocols, allowing WRAITH holders to capture all the value of that growth and to produce some product that allows us to become more than just a fork. The OHM model allows protocols to grow their own liquidity quickly, so naturally, with big ideas and a desire to be self-starters and not rely on corporate VCs, we think this is the best way to grow an initial treasury.

That’s our goal, at least. First, however, we need to not steal your money. Which, as a surprisingly low bar as that is, is all too common. We really want to do this while staying anonymous, something we believe everyone has a right to do in the crypto industry. Although these two things contradict each other, we’re building on trustless systems and are asking you all to trust us.

So, by building a product you desire and allowing you all to invest trustlessly, that’s how we’re going to build a protocol.

The Pivot

Recently, we outlined our plan to perform an IDO. Originally, this would have had you all buy in, using our OG whitelist system, then spend MIM and receive a portion of coins at a set price. This would then be used to create the first amount in the treasury and to create a liquidity pool.

This is how Olympus originally issued OHM. It’s done because devs often don’t have the deep liquidity to provide thousands of USD to create LP pairs or start a treasury.

However, this is often where a rogue protocol starts and very quickly ends. There is no need for any other contracts, no treasury, no bonds, and no staking. As soon as you hand over your MIM, you either receive a bunch of useless tokens or even nothing to show for it at all. The Protocol never even launches.

Solving that issue would be possible. We could KYC or Dox ourselves. We could build systems that protect investors’ funds. However, KYC costs money we don’t have, we’ve already established the anonymity of the team (OHM is anon), and creating an entirely new sales paradigm would take much longer.

Luckily, we have an elegant solution!

Our New Plan

We already have a system to facilitate sales. Our bonding mechanism! Some other protocols have chosen this route, so hopefully some readers see where this is going.

This means that when we launch, the full protocol will be accessible. Anyone will be able to bond MIM and MIM-WRAITH LP into the treasury and earn WRAITH for doing so, vested at the industry standard rate of 5 days. You’ll then be able to stake (3, 3) much like Olympus.

HOWEVER WE STILL WISH TO TREAT EARLY ADOPTERS!

We value and cherish our OGs who have been here since day one. Instead of whitelisting you all for an IDO, we’re going to instead whitelist you all for the Premium Bond service on Day One. This will be a selection of bonds that will vest at a much faster timescale than normal bonds, and apply a heavier discount, bringing the price per WRAITH down significantly, in line with the promises from the initial IDO plan.

Anyone who didn’t make the whitelist will be able to buy normal bonds. In addition,OGs who maxed out premium bond purchases will also be able to purchase normal bonds.

By choosing to do this over the IDO, the liquidity pool will not be rich in liquidity to begin with, as the team will have to create it. Selling WRAITH to the pool might be difficult. To help counteract this, we’ve developed ZAP! Bonds.

ZAP! Bonds allow the user to buy MIM Bonds that vest their tokens immediately, using them automatically to provide MIM-WRAITH LP, which will then be invested into more bonds. This means we can build up a liquidity pool quickly.