Convert your WOM tokens and get rewarded
As you may already know, Magpie was recently launched on Arbitrum and has received overwhelming support from the community. Magpie has quickly become a user favorite among Arbinauts in general. The platform managed to accumulate more than 2.5 million veWOM during its first week on Arbitrum, making it the top veWOM holder. Since we are always in a building mode and never satisfied, no matter how good our results are, today we are pleased to present the continuation of our initiative — The WOM UP Party.
The WOM UP Party is a program designed to motivate and reward the core supporters of Magpie for their contributions to the platform’s development. The event lasts for 3 days, and by participating, users who convert their WOM tokens into mWOM on Magpie will receive vlMGP as rewards. Essentially, WOM converters will be guaranteed 1 mWOM for each WOM conversion, plus vlMGP rewards. vlMGP is the locked version of Magpie’s governance token, MGP. vlMGP holders can vote through the Magpie bribery market to earn real yield in the form of bribes. This is a great opportunity for users to get involved and be compensated for their contributions to Magpie.
Magpie has allocated 1,000,000 vlMGP as rewards for users who convert their WOM tokens into mWOM through the WOM UP Party. The rewards are proportional to the amount of WOM tokens converted & locked, with higher incentives being offered to those who make greater contributions to the platform’s development. This system guarantees a fair and equitable distribution of rewards based on the user’s level of involvement.
The WOM UP Party Reward System
Users have 2 options to participate in the WOM UP Party.
Option 1: Convert WOM into mWOM (No lock up)
Through the WOM UP Party, users have the option to convert their WOM tokens into mWOM at a ratio of 1:1 without lock up. For every converted WOM token, the user will receive 1 mWOM and 0.5 vlMGP, providing an opportunity to get mWOM and accumulate vlMGP.
Convert WOM into mWOM
Example 1
User A converts 120,000 WOM tokens into mWOM through the WOM UP Party. For each converted WOM token, User A will receive 1 mWOM and 0.5 vlMGP as rewards.
To calculate the vlMGP rewards, we can multiply the number of converted WOM tokens by the reward rate:
120,000 * 0.50 = 60,000 vlMGP as rewards
Therefore, User A will receive 60,000 vlMGP, which is equivalent to ~$866.
Option 2: Convert WOM into mWOM & lock mWOM (mWOM Stability Vault)
By choosing to participate in the “mWOM Stability Vault”, users can convert their WOM tokens into mWOM and lock them for the opportunity to unlock higher levels of vlMGP rewards. Converters must select “Lock upon convert option”
Lock upon convert
Example 2:
User B converts and locks 120,000 WOM tokens as mWOM using the “mWOM Stability Vault”. For the locked mWOM tokens, the user will receive different amounts of vlMGP rewards based on the reward brackets:
- For +0 to 1,000 locked mWOM, the user will earn 0.5 vlMGP * 1,000 = 500 vlMGP.
- For +1,000 to 5,000 locked mWOM, the user will earn 0.7 vlMGP * 4,000 = 2,800 vlMGP.
- For +5,000 to 20,000 locked mWOM, the user will earn 0.9 vlMGP * 15,000 = 13,500 vlMGP.
- For +20,000 to 100,000 locked mWOM, the user will earn 1.2 vlMGP * 80,000 = 96,000 vlMGP.
- For +100,000 to 120,000 locked mWOM, the user will earn 1.5 vlMGP * 20,000 = 30,000 vlMGP.
Therefore, User B will receive 142,800 vlMGP, which is equivalent to ~$2,000.
mWOM Stability Vault
It is important to note that the mWOM Stability Vault allows for the accumulation of locked mWOM over time. This means that if you have already locked 4000 mWOM and later decide to convert without locking additional tokens, you will still receive the conversion rate of 0.70 vlMGP/WOM. In other words, the more mWOM you lock, the better your conversion rate will be, and any previously locked mWOM will continue to contribute towards your cumulative total, even if you do not lock any more in the future. This is a useful strategy for maximizing rewards and optimizing the conversion process.
When you have mWOM tokens locked in the Stability Vault and they are in the cooldown period, these tokens will not be taken into account for determining your reward bracket. In case you start the cooldown process, your reward bracket will be lowered, and you will lose the eligibility for the higher conversion reward rate unless you cancel the unlock. This information is important to consider when deciding whether to unlock your mWOM tokens during the cooldown period or wait until it expires to avoid the risk of losing your higher reward rate.
Brackets of rewards per WOM conversion
Brackets of Rewards
By converting and locking their WOM tokens into mWOM using the WOM UP Party, users can receive more vlMGP rewards as they increase the number of tokens locked. As users exceed a specific bracket, they will receive a corresponding reward amount based on the number of locked mWOM tokens in the next bracket. To earn more vlMGP rewards, users can increase the amount of mWOM tokens they lock-up by carrying out various transactions. This allows them to advance to a higher bracket and receive a higher reward amount.
Convert WOM into mWOM and lock mWOM at the same time.
Maximize your rewards
When users choose to convert WOM and lock it up simultaneously, their mWOM tokens are immediately locked in the mWOM Stability Vault. This enables them to progress to the next reward bracket. If a user’s conversion amount surpasses a bracket, they will receive the corresponding reward amount for the exceeding portion in the subsequent bracket, as exemplified in User B’s case. Once a user deposits their mWOM into the Stability Vault, it is locked, and unlocking can only be done after a 30-day cooldown period. Although unlocking is not possible during this period, users can have up to three cooldown slots active simultaneously. However, starting the cooldown process will reduce the user’s bracket, which can be avoided by canceling the cooldown and maintaining a higher bracket.
Distribution of vlMGP Rewards
After converting their WOM tokens through the WOM UP Party, users will immediately receive the vlMGP rewards in their locked MGP balance.
About Magpie XYZ: Magpie XYZ is a multi-chain platform built to boost yields for liquidity providers and governance token holders of veTokenomics protocols. Essentially the platform incentivizes governance token holders and liquidity providers to pool their assets together so that the platform can acquire governance tokens, convert them into veTokens, boost yield for liquidity providers, and in return share part of the protocol revenues derived from liquidity providers’ boosted profits back to governance token holders.