Binance Labs invests in Wombat Exchange
We are thrilled to announce that Wombat Exchange has received a strategic investment from Binance Labs, the venture capital arm and innovation incubator of Binance. Together, Binance and Wombat Exchange will build a hyper-efficient multi-chain Stableswap featuring a first of its kind in aggregated liquidity pool drawn towards 100% capital utilization.
About Binance Labs Incubation Program
To support promising blockchain projects and BUIDLers globally, Binance incubation program offers seed financing to select projects along with practical support ranging from technical assistance, valuable networking, mentorship, and all-around start-up operations to have them geared towards the commercialization process with steady development as part of Binance ecosystem. The program has nurtured a myriad of market-leading crypto businesses such as Polygon, SafePal, and Dune Analytics.
Our Journey with Binance Labs
In times of market volatility, stablecoins are regarded as risk-protective tools to hedge against downturns and therefore the staple of DeFi amongst other fastest-growing segments.
Incentivized by the high demands for swapping stables, Wombat Exchange is built to unshackle the potential of optimal yield with its Stableswap and open liquidity provision. Our strategic pillars, under the incubation of Binance Labs, are as follows:
✅ Decreased impermanent loss on liquidity provision
Flexible and reliable, Wombat’s protocol-level architecture features true single token liquidity provision to circumvent the opportunity cost of having dual tokens locked up in an existing AMM.
✅ Minimized structural risk on token swappage
Depegging is disastrous and can be further exacerbated by the inflexibly designed algorithm used in many stablecoin DEXes.
✅ Innovative algorithm for optimized slippage
Wombat’s innovative algorithm will bring efficiency and liquidity to the entire ecosystem and can even further and assist in pushing the adoption of DEXes.
Wombat Exchange’s invariant for its Stableswap is a modification to the status quo, removing the complicated compositions and balancing of base pools and metapools for Stableswaps. Rather than allowing for dampened price volatility between stablecoin swaps, Wombat Exchange devises an innovative mechanism to improve tokens’ coverage ratio via token swaps.
Roadmap
1️⃣ First Thing First
Our first deliverable will be a guarded platform launch on Binance Smart Chain as an improved alternative to Ellipsis for BSC users. We will be announcing the alpha launch in a couple of weeks.
2️⃣ Our Next Step
In the era of DeFi 2.0, we witnessed the blossoming of multiple independent protocols and scalability networks as well as the explosive growth of avant-garde verticals such as on-chain GameFi and NFTs. The expeditious evolution of the ecosystem results in a burgeoning multi-chain world.
With this in mind, one critical component in the next deliverable of Wombat Exchange is directed towards a multi-chain routing to outperform our L1 competitors. Via integration of our protocol with other external platforms, assets on Wombat Exchange can be accessible across a larger crypto market. Our time-tested DEX will improve the composability of liquidity, hence a boost in TVLs, enhanced capital efficiency, and maximized yields.
👀 A peek at our DeFi-meets-TradFi stratagem
The current DeFi ecosystem is built around highly over-collateralised crypto assets. However, with the majority of the real-world assets predominantly denominated in fiat, Wombat firmly believes that DeFi and TradFi will ultimately coexist with each other.
In the long run, Wombat’s distinctively scalable algorithm seeks to offer a compelling alternative to TradFi and savvy investors, and to become a foundation for enabling advanced developments with its first-mover advantage.
At a higher level, there are various parameters Wombat aspires to achieve in TradFi, where its algorithm can be transitioned to be a compliance brokerage as the driving force, and eventually integrates as part of the forex exchange service when CBDC is introduced.
Manoeuvring through the DeFi-meets-Tradfi arena, Wombat aspires to be the first ever single- sided Automated Market Maker (AMM) designated for forex swaps in the future. We will be working with multiple partners in the fields to power the real economy with optimal solutions.
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