CoinMarketCap: Read what our contributors have to say. This content is provided by the community. DYOR!

Smart WOM Converter


Smart WOM Converter

Magpie XYZ

By Magpie XYZ

6 months ago
2 mins read
Smart WOM Converter

Hello Magpies, Smart Converter for $WOM is here.

Magpie is a yield-boosting platform built on top of Wombat Exchange. The protocol offers WOM holders the opportunity to earn high APR by converting their tokens into mWOM. mWOM refers to “Magpie WOM”. mWOM allows users to earn boosted staking rewards and revenue share from Magpie. Users can also stake their mWOM tokens on Wombat to earn MGP rewards.

When users convert WOM into mWOM or compound their WOM rewards on Magpie they get 1 mWOM for each WOM converted at 1:1 ratio. mWOM is listed on Wombat Exchange and depending on its price, users can get a rate different than 1:1 swapping WOM into mWOM there.

WOM into mWOM conversion

  • Original Conversion rate on Magpie: Users get 1 mWOM for each WOM converted at a fixed rate.

WOM to mWOM swap:

  • On Wombat Exchange: mWOM price is lower than WOM, so if users want to swap WOM to mWOM they can get a better rate there. Let’s say:

1 WOM = 1.2 mWOM approximately

At this rate, if users swap the WOM token to mWOM on Wombat Exchange they get 1.2 mWOM approximately for each converted WOM.

Smart Converter

  • New Mechanism on Magpie: With the new Smart Converter, users automatically get the best conversion rate from WOM into mWOM depending on its price.

Magpie Smart WOM Converter

The Smart WOM Converter solves the conversion rate issue. With this new mechanism, when users convert WOM into mWOM or compound their rewards on Magpie, the Smart Converter will automatically check the WOM to mWOM conversion rate on Wombat Exchange first. If the exchange rate of mWOM to WOM is lower than 0.95 on Wombat, the Smart WOM Converter will swap WOM into mWOM for users and they will get more than 1 mWOM for each WOM converted, the same for compounding, when users decide to compound their WOM rewards into mWOM, they will get an mWOM amount based on Wombat Exchange swap rate between their WOM rewards and mWOM.

For Magpie its a top priority to keep the mWOM price as close as possible to WOM. These actions aim to provide liquidity/stability to the mWOM to WOM conversion. The Smart Converter allows users to get more mWOM for their WOM by offering the best available ratio directly from the mWOM pool.

About Magpie XYZ: Magpie XYZ is a platform built on BNB Chain 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.


0 shared

Other articles published on Dec 4, 2022

Join the thousands already learning crypto!

Join our free newsletter for daily crypto updates!