Wombat Exchange One-Pager

About Wombat Exchange

Wombat is a multichain stableswap native to the BNB Chain. It re-engineered the stableswap experience through its innovative algorithm design, enabling lower slippage and greater capital efficiency. Wombat Exchange allows users to trade between stablecoins freely and earn yields with just one type of stablecoins. It offers the best exchange rate and a seamless swapping experience.

What are Wombat’s Competitive Advantages?

There’re four major benefits that Wombat brings:

• Scalable Equilibrium: Innovate coverage-ratio-based stableswap mechanism to remove scalability barriers, which allows the possibility of achieving 100% capital utilization with non-existent impermanent loss.
• Slippage minimization: Wombat adopts the asset to liability model, slippage is negated until higher transaction amounts and reduced when it occurs.
• User-Friendly UI/UX: Simple and accessible interface with pure single token pool design.
• Foundation for DeFi to build upon: A pure single token pool design enables single-token LP tokens, ideal for borrowing and lending protocols and trading platforms to build on top of.

One of the top existing stableswap on the BNB Chain is Ellipsis Finance, an authorized fork of Curve Finance. On Ellipsis, stablecoins trading is economical. Wombat, however, offers an even better rate because of its ability to maintain the equilibrium of liquidity pools efficiently and bring significant slippage improvement up to 40%. Wombat also offers a lower trading fee of 0.01%, lower than 0.04% on Ellipsis.

Is Wombat Exchange safe to use?

Wombat has passed security audits from three reputable blockchain security firms: Peckshield, Hacken, and Zokyo. These thorough audits certify that the protocol is free from bugs and errors that could potentially be detrimental to the safety of its users. Detailed reports from each firm can be found here.

It also has its own Bug Bounty program co-hosted with Immunefi, where it offers US$500,000 as a bounty prize. Wombat Exchange only trades stablecoins with a single-sided liquidity pool, so the impermanent loss is mitigated. Read the potential risks before you trade and deposit funds.

Who invested in Wombat Exchange?

Wombat gained support from a wide range of leading investors in the crypto space, including Binance Labs, BNB Chain, Animoca Brands, Shima Capital, Jump Crypto, Wormhole, and more.

Refer to the below articles for detailed information:

• Wombat Exchange Raises New Funds in a Strategic Round Investment led by Shima Capital
• Wombat Exchange Raises $5.25M in Series A Funding Led by Animoca Brands and Hailstone Ventures
• Binance Labs invests in Wombat Exchange

WOM token

Wombat’s governance token is WOM and has the following use cases:

• Governance: WOM token holders can participate and vote on governance decisions.
• Liquidity Incentives: Users can earn WOM tokens as rewards by providing liquidity with stablecoins to the liquidity pool.
• Boost on WOM earnings: Users can earn additional WOM from the Boosting Pool by locking WOM tokens. The Boosting Pool incorporates voting escrow WOM (veWOM) for rewards accrual. Locking any amount of WOM applies a boost to all stablecoin pools.

Tokenomics can be read in this medium article.

How to obtain WOM?

You can obtain WOM by providing stablecoins liquidity in two pools, which are:

1. Base Pool — 37.5%
2. Boosting Pool — 62.5%

To earn from boosting pool, a user must lock WOM tokens for a period between 7 days and 4 years to mint veWOM — a non-transferable or tradable yield booster, that applies a boost to ALL stablecoin pools.

To maximize your earning power, it is recommended to read the below guides thoroughly to understand the mechanism with examples:

• Wombat Liquidity Mining — Base Pool Rewards Optimization
• Wombat Liquidity Mining — Optimize Rewards in the Boosting Pool

How to use Wombat Exchange?

The app interface of Wombat is designed to be simple and straightforward.

Check out these step-by-step guides on how to use Wombat:

• Tutorial EP I: How to Swap Stablecoins on Wombat Exchange?
• Tutorial EP II: How to be a Liquidity Provider on Wombat Exchange
• Tutorial EP III: How to stake and earn $WOM
• Tutorial EP IV: How to boost APR by locking $WOM

Wombat Exchange — The next-generation Stableswap 2.0

Wombat is the first in the market to bring the Equilibrium Coverage Ratio to enhance scalability and overall system stability, which allows anyone to benefit from lower slippage in stablecoins trading. Its single-token pool design is user-friendly and allows users to earn yields with just one type of stablecoin.

Wombat is designed to be multi-chained, and the capacity for scaling is monumental. Their protocol can thrive in any chain owing much of it to their all-in-one closed-form quadratic solution. This mechanism is highly efficient and scalable, and a few of its user-oriented perks are providing exact calculations, achieving lower gas fees, and managing liquidity more effectively. This makes them a potential challenger of the almighty Curve Finance.

Wombat has its eyes set on building its own thriving ecosystem for the longer term. An incubation lab is a part of their roadmap where it can support future projects building on top of them. The synergy of these projects will generate countless benefits for Wombat’s governance token holders, as providing value to its users is undeniably woven into their goal.