Wombat 2.0 → More Clarity
Purpose of Wombat 2.0
It might be a good idea to explain why change is needed. DeFi is one of crypto's most critical use cases. That is my belief, and I hope that also becomes your perspective. The previous medium mentioned the flaws in the current DeFi DEX and emission problem; I won’t discuss that further for this medium. However, without re-mentioning that glaring flaw, there are a few other things that I would like to highlight.
Most bribe mechanisms don’t make sense and are not sustainable for many DEXes (don’t freak out; I’m not referring to other DeFi primitives). There is a reason why some innovative projects have moved away from the traditional bribe market design. Let’s first clear the air and lay out some groundwork:
- Being a Liquidity Provider (LP) deserves to be rewarded because that is the cost of time for the user, and thus, they are provided with sharing of trading fees. They deserve a sizable portion of the trading fees because no matter how capital-efficient your algorithm is, you still need liquidity for the DEX to work. They are a requirement.
- Besides the emissions, however, the trading fees are paid by the traders and users of the Wombat Exchange. They are also part of the ecosystem, especially users who help balance the coverage ratio. These users are essential to maintaining the efficiency of Wombat Exchange and are also beneficial to the LPs mentioned above.
- $veWOM holders deserve to be and should be appropriately rewarded because they are faithful supporters of our ecosystem.
- Bribes now incentivize liquidity provision — and that’s it. This is the most glaring flaw of the bribe markets that I don’t know why nobody talks about more. Bribes are a voting mechanism that uses a project’s token to get another project’s token. Nobody likes this mechanism because the value added is relatively low. Sure, you can argue that you get people to pool a liquidity pool, and the bigger the pool, the better the slippage. However, it does not solve people actually using the token or pool to it’s maximum capabilities.
Wombat 2.0 is here to combat all of this and help users of Wombat, holders of $veWOM, and partners that have become part of Wombat Exchange to push and boost their exposure and use cases, solving the issues mentioned above and more.
WomPets NFTs Are Just A Part of It; WomPets Points (WPP) Are What You Want
WomPets NFTs are not the be-all and end-all of it. They are only a part of the WomPets Points. You can think of the breakdown as this:
WomPets NFT — As you stake this NFT, your WPP will grow progressively. If you stake and hold, you will accumulate points to play the games.
Wombat Liquidity Providers — As long as you have liquidity in Wombat, you will accumulate points to play the games without the WomPets NFT.
$veWOM holders — Your WPP will also grow progressively. Also, if you do not have $veWOM, you will not get any points; holding $WOM is not enough, sorry.
Trading — You will be able to gain points doing trading on Wombat and also helping balance our coverage ratio
Partner-Initiated Tasks — These will work with our future partners to provide bonus points to the WPP system. This is big because partners can make sure their bribes are working effectively for their purposes.
The percentages will be decided after the relevant snapshot(s) that happen(s). Right now, I still need to see the breakdown of everything to make it as fair as possible for all the users.
Answering… (This or That), Is Not Fair!
I’ve had a lot of teams that approached me saying that they have contributed A and deserve B, or they have contributed C, and they deserve D. To be honest, I think everyone is essential. From the die-hard fans to the shillers to even the people who are in it for the price, people who trade on Wombat, people who LP, everyone is part of the ecosystem and makes up the crypto experience. If you think otherwise, I would counter that it is pretty selfish. There is only a limited supply of NFTs we will generate. There are a fixed amount of people who will get the NFTs, and that is the reality. Users must realize that NFTs are a bonus to the top contributors; other ways exist to gain WPPs. The majority of the first chapter of the WomPets NFTs will go directly to large holders of $veWOM on Wombat (of course, a smaller portion will be allocated randomly, not according to volume, so that everyone has a chance). This chapter is for users who supported Wombat directly without using aggregators.
However, the successive NFT sets will not be distributed similarly, as we will reward other ecosystem members. Right now, it’s just going down the timeline of the creation of Wombat Exchange. The successive NFTs will be distributed to the users of the platforms who have won the WOM Wars. Just sit tight! It’s coming.
— Alex, Founder of Wombat Exchange
