Wombex Finance

<blockquote>Architecture and operation principles of Wombex protocol in a nutshell</blockquote><h2 id="header-0">Introduction</h2>Wombex is a yield aggregation and veToken accumulation protocol built on top of Wombat. The protocol operation is based on the rules Wombat veToken model:<ol><li>Wombat offers base APY (offered to anyone supplying liquidity without any additional conditions) and boosted APY (depends on the user’s veWOM position)</li><li>To create a veWOM position, the user needs to lock WOM for a certain amount of time (from 7 days to 4 years, longer lock-up corresponds to bigger number of veWOM received after locking)</li><li>Based on the user’s veWOM position vs veWOM position of others, the boosted APY is calculated. In general terms — more WOM locked for a longer time leads to bigger veWOM position and, finally — a bigger APY for the user.</li></ol>It can be easily found in Wombat <a href="https://app.wombat.exchange/pool" rel="noopener noreferrer nofollow">interface</a>:<img src="https://miro.medium.com/max/1400/1*Nq5Cys9IVNeu0QZ0v_2mow.png" />The “median” term means that 50% of LPs earn more than the specified APY, and 50% earn less. The key takeaway is that the more veWOM user has, the bigger APY can be achieved.Wombex’s primary purpose is to provide an excellent WOM boost to LPs as a service and allow Liquidity Providers to earn high APY without the necessity to buy and stake WOM.<blockquote>The main Wombex goal from day one of launch is to accumulate as many veWOM as possible, offer the highest yields to LPs, and attract solid TVL</blockquote>At the same time, when TVL is big enough, it mines a lot of WOM, part of which is going to protocol as protocol fee, increasing boost even more and acting as a natural feedback loop.So, Wombex has several essential components:<ol><li>Infrastructure for accepting WOM from the community, staking it, and providing liquid derivative services</li><li>Infrastructure for getting users’ liquidity, staking it into Wombat, boosting yield, and receiving it</li></ol>Additionally, Wombex has its token (WMX) and all necessary services built around token distribution, protocol governance (vote-locking), liquidity mining incentives, and fee distribution.<h2 id="header-1">Wombex Mindmap</h2>The Mindmap presented below demonstrates the pathway of user interaction with the protocol:<img src="https://miro.medium.com/max/1400/1*iQYZYdLGsGF7le_koGz9kw.jpeg" /><h2 id="header-2">WOM staking</h2>When WOM holders stake their WOM into Wombex-owned veWOM position and receive wmxWOM in return. wmxWOM is a liquid staking derivative of veWOMThere are two ways to receive rewards for owning wmxWOM:<ol><li>Single-side staking of wmxWOM into LP mining contract and receive WMX rewards and share of protocol fees (5% of overall mined WOM). It is a way to generate cashflow just simply owning WOM in Wombex.</li><li>Deposit liquidity into wmxWOM/WOM trading pair on Wombat, stake LP token into LP mining contract, and earn WMX rewards for liquidity provision.</li></ol>For WOM staking, there will be a special WOM Wars Boostrap event. In the first two weeks after the Wombex launch, 2% of WMX’s total supply (2 million WMX) will be granted to early LPs. Do not miss the chance to participate in this event. Follow Wombex on Twitter and Discord. All updates will be there.<h2 id="header-3">Liquidity provision to Wombat via Wombex</h2>When there is enough veWOM owned by Wombex it can provide yield boost to all LPs supplying liquidity via Wombex. Wombex simply uses accumulated (protocol-owned) veWOM to boost yield to all funds supplied to the protocol and split WOM rewards between all LPs.Liquidity providers receive WOM rewards (minus protocol fees) and WMX issued pro-rata for each mined WOM. Combined together, it can provide a much bigger yield than currently LPs can earn on Wombat. Taking into account that now Wombat is a champion in stablecoin APY on BNB chain, it will result in “to the moon boost”.<h2 id="header-4">WMX token and its utility</h2>The utility of WMX token is activated only when WMX is staked into a vote-lock contract (vlWMX). The lock up duration is 16 weeks and cannot be changed.Being vote-locked, WMX allows to its owner fully participate in Wombex and derive the following utility from the protocol:<ul><li>Receive a share of protocol fees (charged in mined WOM) for staking WMX in vote-lock</li><li>Govern Wombat using veWOM protocol holdings (meta-governance), influence direction of rewards emission, or sell governance power on secondary market (so-called bribes)</li><li>Govern Wombex protocol, including treasury, emission schedule, and other parameters via vote-locking WMX (vlWMX)</li></ul>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>

How does Wombex work?

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Wombex Finance

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