Wombex Finance

Wombex is the leading yield aggregation and veToken accumulation protocol on BNB Chain, <a href="https://defillama.com/chain/BSC" rel="noopener noreferrer nofollow">ranked</a> #9 by TVL in the ecosystem. <a href="https://wombex.finance/" rel="noopener noreferrer nofollow">Wombex</a> is built on top of <a href="https://app.wombat.exchange/" rel="noopener noreferrer nofollow">Wombat</a> and currently carries out two functions: deposits aggregation and veWOM accumulation. We plan to release the third function — the bribe market function shortly after Wombat launches its governance.<blockquote>It’s time to compare Wombex with its closest references, leading yield aggregators in the Ethereum ecosystem: Convex and Aura.</blockquote>Convex is the original veToken accumulation platform built on top of Curve. It achieved outstanding results of $20B ATH TVL during the recent bull market. In turn, Aura Finance is the most successful Convex fork in Defi space explicitly built for accumulating veBAL, vote-escrowed tokens of Balancer protocol.We will analyse the following metrics of protocols and compare them between each other. Evidently, both projects selected for comparison are much more mature than Wombex. Due to it, we will compare not only current numbers, but in some cases also early stage data.<h3 id="strong-metrics-for-comparison-and-the-article-outline-strong">Metrics for comparison and the article outline:</h3><ol><li>General metrics such as TVL, M.Cap, TVL/M.Cap, share of the overall veToken supply owned by the protocol</li><li>Protocol fees and revenue</li><li>Secondary market depth for liquid staking veTokens such as cvxCRV, auraBAL, and wmxWOM</li><li>User base analysis</li><li>Protocol governance token analysis: inflation, vote-locked tokens: stats &amp; utility, holders, and bribe market stats</li><li>Conclusion</li></ol>General metricsTVL, TVL/M.Cap, veToken share in total veToken locked<img src="https://miro.medium.com/max/1400/1*ndf7v9rbLnfJ_1uwdG01UA.png" />Sources: convexfinance.com, aura.finance, wombex.finance, coinmarketcap.com, defillama.comIt’s important to note that the amount of TVL in underlying projects (Curve, Balancer, Wombat) significantly differs: $3.76b vs $1.55b vs $145.2m.Curve and Balancer are major Defi protocols for swapping stables and all assets in the Ethereum ecosystem, respectively. Wombat is the leading StableSwap DEX in the BNB Chain ecosystem.Wombex has the lowest M.Cap/TVL ratio compared to Convex and Aura.Fees and revenue analysisConvex, Aura, and Wombex charge protocol fees from LPs and distribute it to veToken liquid derivative stakers (cvxCRV, auraBAL, wmxWOM) and vlToken stakers (vlCVX, vlAURA, vlWMX). Total amount of fees collected and distributed is presented below:<img src="https://miro.medium.com/max/1400/1*_VZEV7U_VezJuVIwY1rESg.png" />Sources: convexfinance.com, aura.finance, wombex.financeWombex is the leader in staking yield, offering 70.6% APR for wmxWOM staking and 69.5% APR for vlWMX staking. Compared to Convex and Aura, such a big APR for vlWMX staking is connected with a relatively low amount of vlWMX staked vs high earned WOM fees in Wombex.Secondary market depth for liquid staking derivativesThe liquidity for liquid staking derivative is a metric of primary importance for Convex-like projects. We compared current state of liquid staking derivatives trading pairs below:<img src="https://miro.medium.com/max/1400/1*35KcS94PjWhXw6zu1cuLvA.png" />Sources: defiwars.xyz, <a href="https://curve.fi/factory/22," rel="noopener noreferrer nofollow">https://curve.fi/factory/22,</a><a href="https://app.balancer.fi/#/ethereum/pool/0x3dd0843a028c86e0b760b1a76929d1c5ef93a2dd000200000000000000000249," rel="noopener noreferrer nofollow">https://app.balancer.fi/#/ethereum/pool/0x3dd0843a028c86e0b760b1a76929d1c5ef93a2dd000200000000000000000249,</a> <a href="https://app.wombat.exchange/pool" rel="noopener noreferrer nofollow">https://app.wombat.exchange/pool</a>Peg for Convex and AURA is &gt;90%, for Wombex it is ~88.5% which is connected with limited liquidity on the wmxWOM/WOM pair. However, the Wombex pair offers the best APR for LPs.<h3 id="users-analysis">Users analysis</h3>This section analyzes user activity in Convex, Aura, and Wombex. Of course, it is impossible to make a straight comparison here since projects have entirely different lifetimes, brand values, and the popularity of underlying protocols. The Curve is evidently bigger than Balancer and significantly bigger than Wombat. However, for clarity it is worth mentioning here 27.4b Ethereum ecosystem TVL vs 5b BNB chain ecosystem TVL.Convex: 37.9k unique users, 261 active users today.<img src="https://miro.medium.com/max/1400/0*jDfb8PZgU7XZQPF0" />Monthly unique users chart, <a href="https://dune.com/Marcov/Convex-Finance" rel="noopener noreferrer nofollow">https://dune.com/Marcov/Convex-Finance</a>Aura: 4.05k unique users, 68 active users today.<img src="https://miro.medium.com/max/1400/0*x57fs2Q2ILHzP7Xm" />Monthly unique users chart, <a href="https://dune.com/0xahtle7/aura-finance-dashboard" rel="noopener noreferrer nofollow">https://dune.com/0xahtle7/aura-finance-dashboard</a>Wombex: 1.89k unique users, 110 active users today.<img src="https://miro.medium.com/max/1400/0*jqhjmgp0ZI0End54" />Daily unique users chart (the monthly makes no sense since Wombex is &lt;2 months old), <a href="https://dune.com/wombex_finance/wombex-users-stats" rel="noopener noreferrer nofollow">https://dune.com/wombex_finance/wombex-users-stats</a>The older a project is, the more unique users it has. However, daily users statistics are quite comparable. Convex has 2.37 times more daily active users (last day), while Wombex has 1.37 times more daily active users than Aura.We also created an additional query for Wombex demonstrating the number of new unique addresses using Wombex daily (addresses that ever interacted with Wombex contracts before are not counted):<img src="https://miro.medium.com/max/1400/0*pIM458yC5SsctsLX" /><a href="https://dune.com/queries/1683426/2864151" rel="noopener noreferrer nofollow">https://dune.com/queries/1683426/2864151</a>Protocol token analysisIn this section we compare circulating supply, amount (and share) of vote-locked tokens, and some other additional stats.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/1565ad7df9ba4cb0a4892f73ccf34f41.jpeg" />The absolute number of tokens locked is a metric that makes no sense for comparison as projects’ lifetime is different.However, we can compare the share of circulating supply locked and AURA and Convex leads with the most significant share of AURA and CVX are locked — 70.4% and 71.4%.<blockquote>It’s quite an interesting question — who are owners of vote-locked positions?</blockquote>In case of Convex and AURA, major DAOs own vote-locked positions:<img src="https://miro.medium.com/max/1400/0*BDO4A8oPYyAymDF7" /><a href="https://dune.com/rplust/vlCVX-Ownership-Who-has-the-power" rel="noopener noreferrer nofollow">https://dune.com/rplust/vlCVX-Ownership-Who-has-the-power</a>For AURA, there is no data on Dune analytics regarding DAO ownership. However, some stats are available at Defiwars.xyz:<img src="https://miro.medium.com/max/1400/0*lAnPjwCF28L9gRJt" /><a href="https://www.defiwars.xyz/wars/aura" rel="noopener noreferrer nofollow">https://www.defiwars.xyz/wars/aura</a>Wombex’s vlWMX isn’t owned by any known DAOs yet but it’s definitely an aim in the future. Taking into account that Wombex now controls the #1 position in Wombat veWOM (36% veWOM is owned by Wombex) and &gt;50% Wombat TVL, it can be accumulated by BNB ecosystem DAOs.<blockquote>Bribe market stats are available only for Convex and AURa since Wombat governance isn’t launched yet.</blockquote>Bribes ATH for vlCVX demonstrated incredible 0.64 cents per 1 vlCVX vote at the top of Convex/Curve TVL and significance of ownership voting power in Curve protocol:<img src="https://miro.medium.com/max/1400/0*yYM6GO9-DR7tMUv9" /><a href="https://dune.com/rplust/Vote-Locked-Convex-Token-%28vlCVX%29-Bribes" rel="noopener noreferrer nofollow">https://dune.com/rplust/Vote-Locked-Convex-Token-(vlCVX)-Bribes</a>Last month vlCVX bribes were in the 0.015–0.045 cents range per 1vlCVX.One vlCVX is valued at $3.9; 26 bribe rounds per year can provide a $0.78 yield for the vlCVX owner in case of voting every round (assuming $0.03 per vote)The bribe value for vlAURA was 0.05–0.07 cents per 1vlAURA vote.One vlAURA is valued at $2.15; 26 bribe rounds per year can provide a $1.56 yield for the vlAURA owner in case of voting every round (assuming $0.06 per vote).<blockquote>For Wombex there are no such stats since there is no governance in Wombat.However, it will be launched soon.</blockquote>We need a framework for valuing possible bribing yield for vlWMX voting power for presenting any assumptions regarding vlWMX bribes. It will depend on the total TVL on Wombat, Wombex-owned veWOM voting power, and attractiveness of bribing pools in Wombat (number of different pools and competition between them).<h3 id="conclusion">Conclusion</h3>This article compares metrics of the original veToken aggregator (Convex), the most successful fork in the Ethereum ecosystem (Aura.finance), and Wombex. Wombex is the leading veToken aggregator in the BNB Chain, ranked #1 by TVL and veWOM accumulated.Wombex is an emerging protocol launched less than two months ago. It is developing on top of a brand new Wombat protocol (launched only ~3 months ago). However, Wombex metrics are pretty comparable and sometimes even surpass ones of such big players as Convex and Aura:<ul><li>Wombex owns 36% of veToken locked in the underlying protocol(Wombat), which is between Convex (46% veCRV) and Aura (22% veBAL), taking into account two official veToken accumulation competitors projects building on top of Wombat from day one.</li><li>Wombex accounts for 65% of Wombat TVL. The value of this metric is also between Convex (84% Curve TVL) and Aura (22% Balancer TVL)</li><li>Wombex has the lowest M.Cap/TVL ratio — 0.016, what is 7.5 times lower than in the case of Convex and 5 times lower than in the case of AURA</li><li>Wombex offers the biggest staking APRs for liquid derivative staking(wmxWOM) and outstanding vlToken APR (vlWMX staking offers 69.5% while vlCVX/vlAURA around 3–4% APR only)</li><li>Wombex liquid staking derivative peg is comparable with Convex/Aura (only 1.5% lower than in Aura case)</li><li>Wombex has comparable total unique users metric with Convex and Aura (normalized users count by the time of project operation, since it’s evident that the longer project is active, the more unique addresses will use it), and also more daily active users than AURA</li><li>At the present moment, Wombex has a lower share of vlToken locked than Convex and Aura. However, Convex had 5.3 vlCVX locked in Sep 2021 (<a href="https://dune.com/queries/373346/711525" rel="noopener noreferrer nofollow">https://dune.com/queries/373346/711525</a>), while the circulating supply was ~17m. It corresponds to 31% locked CVX, which is considerably lower than in the case of Wombex (41.1%). That time Convex was live for four months, while Wombex is only two months old.</li></ul><blockquote>So, Wombex vote-lock statistics is ~equal to the Convex early days and is a bit bigger in terms of locked tokens.</blockquote><ul><li>We also created charts: vlAURA/AURA_total_supply and vlWMX/WMX_total_supply to demonstrate vote-locking activities during first two months of protocol operation:</li></ul><img src="https://miro.medium.com/max/1400/1*OCoMX93hZFoqNP-n8Q_n5A.png" /><a href="https://dune.com/queries/1739113" rel="noopener noreferrer nofollow">https://dune.com/queries/1739113</a><img src="https://miro.medium.com/max/1400/1*uWik_Gy3vT73mX42zNgpLw.png" /><a href="https://dune.com/queries/1739036" rel="noopener noreferrer nofollow">https://dune.com/queries/1739036</a><ul><li>We cannot compare the utilization of governance power owned by Wombex with Convex and Aura since governance in Wombat isn’t launched. However, above we discussed bribing market stats for remaining two projects.</li><li>Accounting Wombex’s leading position in the BNB chain ecosystem, we look forward to various DAOs operating in the BNB chain owning vlWMX and actively participating in Wombex and Wombat governance.</li></ul><h3 id="strong-follow-wombex-socials-strong">Follow Wombex Socials</h3><a href="https://twitter.com/WombexFinance" rel="noopener noreferrer nofollow">Twitter</a> | <a href="https://discord.com/invite/wombex" rel="noopener noreferrer nofollow">Discord</a> | <a href="https://t.me/wombex" rel="noopener noreferrer nofollow">Telegram</a> | <a href="https://coinmarketcap.com/community/profile/WombexFinance" rel="noopener noreferrer nofollow">CMC Community</a> | <a href="0x84471507c3281bcda8f5ef13403781149f06be13" rel="noopener noreferrer nofollow">Medium</a>

Wombex: Data Analysis and Comparison with Convex and Aura.finance

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Wombex Finance

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