Wombex Finance

<blockquote>Aligning incentives and boosting yields on top of Wombat </blockquote><h2 id="header-0"> Introduction</h2>Today we are thrilled to introduce the <a href="https://wombex.finance/" rel="noopener noreferrer nofollow">Wombex.finance</a>, a BNB chain native protocol for boosting yield for liquidity providers and concentrating governance power across Wombat.The popularity of Vote escrowed (also called “ve”) models for governance tokens exploded over the past year. Those models allow users to lock the protocol’s tokens for a fixed amount of time to unlock governance rights and other utilities, such as distributing protocol fees to veToken holders. Such a mechanism establishes a long-term relationship between the protocol and stakers.Ve models were adopted and battle-tested by multiple protocols, such as Curve, Balancer, Spirit, Platypus, and others. A properly designed veToken system leads to healthy protocol growth due to aligned incentives between token holders and liquidity providers, efficient governance, and multiple additional yield opportunities for token holders, such as bribe markets.<a href="https://www.wombat.exchange/" rel="noopener noreferrer nofollow">Wombat</a> is an innovative protocol pioneering new <a href="https://www.wombat.exchange/Wombat_Whitepaper_Public.pdf" rel="noopener noreferrer nofollow">StableSwap tech</a> and <a href="https://medium.com/wombat-exchange/the-rise-of-vetokens-af7e23bb8caa" rel="noopener noreferrer nofollow">veToken mechanics</a> on BNB Chain, opening a new chapter in Stablecoin/pegged assets yield generation in the BNB ecosystem.Wombex aims to make this process as efficient as possible and support Wombat’s growth and liquidity acquisition.<h2 id="header-1">Why does Wombat need Wombex?</h2>There are two main actors in Wombat: Liquidity Providers and veWOM token holders. In order to receive high APY based on veToken boost, Liquidity provider should have veToken (veWOM) position in Wombat. Wombex solves this issue, sharing protocol-owned veWOM position and boost it provides with LPs, charging a little fee which is transferred to WOM stakers and vlWMX holders, governing the entire system.As a result, LPs receive much bigger income on their liquidity without necessity to own veWOM position, while WOM stakers receive income stream from their staked WOM with an option to exit a position at any time using wmxWOM liquid derivative.<blockquote>Wombex combines the power of liquidity providers and WOM token holders supercharging each other and accelerating long-term Wombat growth.</blockquote>Wombex creates a positive feedback loop for LPs and WOM holders in the Wombat ecosystem: the more WOM is locked with Wombex, the more yield liquidity providers receive. At the same time, the share of LPs’ yield is transferred to WOM stakers as fees that encourage more WOM holders to lock their tokens into Wombex.From a tech point of view, Wombex is a fork of Convex with a lot of additional development, features, and customization for Wombat architecture. We plan to cover all of that in our next articles.<h2 id="header-2">User stories and value proposition for WOM holders and Wombat LPs</h2>For WOM holders Wombex provides easy onboarding to veWOM, preserving WOM liquidity and offering additional yield such as share of protocol fees (in WOM), veWOM staking yield from Wombat, and additional WMX rewards.WOM Holder user journey &amp; benefits:<ol><li>Deposit WOM to Wombex</li><li>Receive a share of protocol’s fees (share of WOM, mined by Wombex LPs in Wombat)</li><li>Receive WOM yield as a regular veWOM holder, including any airdrops to veWOM holders</li><li>Receive WMX rewards</li></ol>User story example: Bob wants to receive additional yield while owning WOM. His journey: (1) deposit WOM (2) receive wmxWOM (3) stake wmxWOM and receive share of WOM protocol fees + WMX rewards.For Liquidity Providers For Liquidity providers Wombex provides a streamlined pathway to maximal yield in Wombat. Being onboarded, LPs receive additional yield based on boost powered by Wombex-owned veWOM earning WMX rewards on top of that.Liquidity provider user journey &amp; benefits:<ol><li>Deposit your assets into Wombex</li><li>Earn boosted yield in WOM</li><li>Earn WMX rewards</li><li>Earn swap fees</li></ol>User story example: Alice wants to farm more from her stables without being exposed to $WOM volatility (without holding veWOM in her portfolio). She (1) deposits stables to Wombex (2) earns boosted yield in WOM (3) earns WMX rewards.Wombex native token: WMXWMX is a Wombat native token. WMX token has utility on the platform only being vote-locked in a special contract for 16 weeks (vlWMX). The vlWMX token holders can use a their vote-locked WMX for participation in Wombex and Wombat ecosystems:<ul><li>Receive a share of protocol fees (charged in mined WOM) for staking WMX in vlWMX</li><li>Govern Wombat using veWOM protocol holdings (meta-governance), influence direction of rewards emission, or sell governance power on secondary market (receive so-called bribes)</li><li>Govern Wombex protocol, including treasury, emission schedule, and other parameters via vote-locking WMX (vlWMX)</li></ul><h2 id="header-3">Launch plans and Upcoming events</h2>During the next week we plan to publish more about Wombex, WMX token distribution, launch plan (including initial $WOM bootstrap event and a special $WMX airdrop). All you need to stay tuned is to follow our social media and Discord channels:Twitter: <a href="https://twitter.com/WombexFinance" rel="noopener noreferrer nofollow">https://twitter.com/WombexFinance</a>Discord: <a href="https://discord.gg/wombex" rel="noopener noreferrer nofollow">https://discord.gg/wombex</a>Telegram: <a href="https://t.me/wombex" rel="noopener noreferrer nofollow">https://t.me/wombex</a>Folks who already filled the form on the website are real OGs!Stay tuned.

Introducing Wombex.finance

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Wombex Finance

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