Wombat Exchange

<p>The launch of Convex forks on Wombat has led to the rise of our native token, WOM. These Convex forks, namely, Wombex, Magpie, and Quoll, gave users better flexibility and yet another opportunity to earn with their $WOM and stablecoins. In the acceleration of the WOM Wars, wmxWOM, mWOM, and qWOM pool will come to Wombat. Just how exactly do these pools work? Let’s find out!</p><p></p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/dea1744c1ca343ed91c7330ecae5d752.png" /><h2 id="header-0"><strong>What is a tokenized veWOM?</strong></h2><p>When a user deposits WOM into Wombex, Magpie, or Quoll, that WOM is locked forever on Wombat as veWOM. A tokenized version of veWOM — wmxWOM, mWOM &amp; qWOM is returned to the user at 1:1 and this conversion is <strong>irreversible</strong>. Liquidity pools that will allow users to swap tokenized veWOM back to WOM tokens may exist in the future.</p><h2 id="header-1"><strong>The launch of tokenized veWOM pool</strong></h2><p>Launching these pools provides market liquidity, where you can swap tokenized veWOM into WOM to exit liquidity. A swap fee of <strong>0.25%</strong> will be charged, and exchange rates will depend on the market.</p><h2 id="header-2"><strong>How does the algorithm ensure safety?</strong></h2><p>The wmxWOM/mWOM/qWOM pools adopt the algorithm used on the <a href="https://medium.com/wombat-exchange/side-pool-launch-announcement-7fd47a1f9015" rel="noopener noreferrer nofollow">Side Pool</a>. The most crucial innovation is that the pool’s designed to protect itself from being overtopped by one token, creating an imbalance. This is a glaring issue with most other exchanges. When tokens get depegged or hacked, pools drain and are left in an extremely unhealthy state. We solve this problem by limiting the damage to protect liquidity providers on Wombat holding other tokens.</p><p>For best protection, these volatile assets will be subjected to stricter requirements on their coverage ratios and supply limits.</p><p>By implementing a coverage ratio fee <strong>on top of the haircut</strong> on the event when the coverage ratio of the from-token (of the volatile asset) exceeds 2, further swapping is discouraged. Once it reaches the maximum limit set (at 2.5), a 100% fee is charged, which makes further swapping near-impossible. Fee details can be found <a href="https://docs.wombat.exchange/docs/concepts/fees/coverage-ratio-fee" rel="noopener noreferrer nofollow">here</a>.</p><p>On smart contracts, the pools were audited by <a href="https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-WombatV2-v1.0.pdf" rel="noopener noreferrer nofollow">Peckshield</a>. To ensure comprehensive security, all known vulnerabilities have been fixed and deployed.</p><h2 id="header-3"><strong>What emissions are in these pools?</strong></h2><p>WOM emissions will NOT be allocated to these pools. Hence, the veWOM boost is not applicable in these pools. This will not affect your boosting capabilities on other pools.</p><p>Wombex, Magpie, and Quoll will provide their governance tokens as rewards.</p><h3 id="wmxwom-pool">wmxWOM Pool</h3><p>wmxWOM: 25,000 WMXWOM: 50,000 WMX</p><h3 id="strong-mwom-pool-strong"><strong>mWOM Pool</strong></h3><p>mWOM: 237,600 MGPWOM: 71,280 MGP</p><p>These rewards last until 29Nov. Future emissions are subject to change based on pool liquidity.</p><h3 id="qwom-pool">qWOM Pool</h3><p>qWOM: 233,280 QUOWOM: 362,880 QUO</p><p>All emissions are subject to change.</p><h2 id="header-4"><strong>How is the peg maintained?</strong></h2><p>Please note that we DO NOT guarantee a 1:1 conversion of wmxWOM, mWOM &amp; qWOM to WOM. The exchange rate will be set in real-time by the market (liquidity provision).</p><p>Arbitrage opportunities can be found when the coverage ratio is off balance, and users can earn with the withdrawal gain and the difference between exchange rates.</p><h2 id="header-5"><strong>Conclusions</strong></h2><p>Before making any investment decisions, we suggest our users fully understand the mechanism of WOMWars and the protocols involved. Make sure to know the risks involved, and reach out to our community if you have any questions.</p><p>We look forward to seeing the WOMWars ecosystem grow and thrive. We are excited to have you with us!</p><h2 id="header-6">About Wombat Exchange</h2><p>Wombat Exchange is a multichain stableswap native on the BNB Chain, focused on re-engineering the stableswap experience with its innovative algorithm design as the next-generation stableswap 2.0.</p><p>Wombat’s vision is to fuel DeFi growth and push boundaries with greater capital efficiency, increased accessibility, and scalability, with the adoption in a multichain world. To learn more, visit wombat.exchange, or follow us on the social channels below:</p><p><a href="https://wombat.exchange/" rel="noopener noreferrer nofollow">Website</a> |<a href="https://t.me/WombatExchange" rel="noopener noreferrer nofollow"> Telegram</a> |<a href="https://twitter.com/WombatExchange" rel="noopener noreferrer nofollow"> Twitter</a> |<a href="https://discord.gg/wombat" rel="noopener noreferrer nofollow"> Discord</a></p>

WOM Pools Explained

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