Wonderland Update: Transition to wMEMO

Wonderland launched on September 2nd 2021. In just over four months, the protocol accumulated over $1 Billion USD of non-time assets in the treasury. The Mint mechanism substantially increased treasury while the APY and rebases attracted our user base.
This successful treasury expansion created a well diversified basket of assets, most of which produce yield.

Treasury Management

Carefully selecting the mint discounts while assessing which asset would benefit our treasury the most has been an ongoing process, led by Sifu, the protocol co-founder and treasury manager.
The mint mechanism allows treasury to gather new tokens by selling discounted TIME to minters. These TIME tokens are not just discounted but also newly created, meaning that for each mint, brand new TIME tokens are being put in circulation. The current rate of raising capital vs dilution is not a concern but preliminary measures are being taken to reduce the overall token dilution by changing the minting process for certain tokens. The original minting process transferred newly generated TIME to minters as well as a portion of it to the treasury. Since inception, treasury owned TIME grew substantially into over 200,000 tokens.

Non-dilutive Mints

Changing the process to distribute treasury owned TIME actually reduces tokens in circulation, as opposed to minting new ones. Buyers will still receive discounted TIME, but instead of new tokens being introduced to the market, TIME tokens that are currently sitting in the treasury will be distributed.

This setting is flexible and can be activated across chains and for specific tokens. It gives the treasury an enhanced ability to control the rate of raising capital vs dilution.

Adjusting protocol liquidity

Moving forward, an adjustment with a focus towards wMEMO token liquidity aims to improve the user experience, price discovery and allows the protocol to grow on new chains.

Wonderland currently has three tokens which are actively used in its protocol:

• TIME
• MEMO
• wMEMO

The TIME token cannot rebase itself, it is mainly used to enter or exit the protocol. If a new user wants to join the ecosystem and benefit from rebases and the growing treasury, they would have to follow multiple steps, from purchasing TIME, to staking it for MEMO on the platform and if they would like to make use of Defi composability by using a platform like Abracadabra.money (lending platform and ecosystem partner) they would need to wrap the token to wMEMO as well.

Overall this process seems overly complicated and can be a problematic user experience for newcomers.

The transition to a wMEMO focused ecosystem will ensure that the same benefits of rebasing remain with the token holder while reducing the steps to enter the ecosystem improves the user experience and allows for easier onboarding.

Everything inside the cookie box

wMEMO can be seen as the cookie box 🍪📦 that holds all cookies:

All the users current cookies 🍪 (MEMO), as well as cookie crumbles (rebases), are held within this token (cookie box).

A rebase can be seen as a piece of the existing cookie breaking off while the protocol counts it as a separate piece of a new cookie 🍪🍪. At the end, the user has more cookies, however the value of all cookies (total weight of the cookie box = your share of the market cap) added together has not changed since everything originates from cookie’s being broken off from the original.

An ecosystem that focuses on displaying the price action of the rebase token is prone to downward pressure on the underlying token price due its dilution. While currently TIME is in a growth phase and does not have this problem, a long-term strategy to allow accurate price discovery of the protocol is beneficial for the future.

A system that focuses on the cookie box 🍪📦 — wMEMO which is holding all the crumbles, can maintain its price as well as more accurately reflect the true value of the protocol and the growth of the ecosystem.

Understanding wMEMO

One wMEMO currently is valued at 46.4640 MEMO, as the protocol performs rebases, the amount of MEMO held by 1 wMEMO increases accordingly.

Therefore, if a user holds wMEMO they will continue to receive all rebases inside the system. Composability is one of the core features of defi. When you use DeFi, you can interact with protocols in limitless combinations. Rebase tokens like MEMO can cause issues for other protocols, therefore we need to wrap the token before interacting with another product. Overall the transition to a wMEMO focused protocol will allow us to integrate with a wide range of projects across many different chains.

Improved User Experience

Allowing a user to directly purchase wMEMO instead of TIME, instantly invites the user into the ecosystem where they benefit from rebases. The user can always unwrap wMEMO and directly interact with the MEMO rebases or unstake to TIME.

It is important to understand that no changes to the protocol code are made, only the entrance into the protocol is being improved and the focus on price action is moving towards wMEMO.

Next Steps

In order to complete the transition to a wMEMO focused system on Avalanche, Wonderland opened a new wMEMO-MIM pool on Sushi.

To create a smoother onboarding experience, Wonderland is also migrating AVAX-MIM LP to Sushi. This way users who hold AVAX can directly purchase wMEMO.

The change of focus towards wMEMO allows a more accurate value assessment of the ecosystem by focusing on a market cap adjusted price action. It simplifies the user experience and opens the gates towards Wonderland growing its presence of wMEMO on multiple chains.

The new wMEMO-MIM pool on Sushi already has over $250M in liquidity.

Token Stats and Liquidity information:

https://dexscreener.com/avalanche/0x4d308c46ea9f234ea515cc51f16fba776451cac8

wMEMO-MIM pair on Sushi:

https://app.sushi.com/swap?outputCurrency=0x0da67235dd5787d67955420c84ca1cecd4e5bb3b

Multichain

Wonderland’s expansion towards a multichain ecosystem has begun!

On Fantom, the protocol has started to sell non-dilutive mints while additional wMEMO-MIM pairs are being launched across all popular chains, to help onboard more users.

Closing Thoughts:

Wonderland aims to improve the user experience by simplifying the onboarding process. Moving all liquidity to wMEMO will also allow market cap adjusted price tracking.
We are preparing for a multi chain expansion, be prepared for new mints and a more prominent presence across all popular chains.

To stay up to date, join our Wonderland Discord Server, the Wonderland Governance Forum and follow us on Twitter.