Multi-chain DeFi platform providing Yield & veTokenomics boosting services
Magpie is a Multi-chain DeFi platform providing Yield & veTokenomics boosting services & it's built on top of Wombat Exchange.
veTokenomics, introduced by Curve, is a tokenomics model in which users must lock their governance token as veToken (vote-escrowed token) for a fixed period of time to increase their APR as liquidity providers and get voting power to allocate the protocol's governance token emissions. This helps the platform to control the governance token inflation and distribute more governance tokens to long-term holders.
However, veTokenomics still have room for improvement and many veTokenomics protocols face the following issues:
- Limited user base - The requirement to buy & lock governance tokens prevents many risk-averse liquidity providers to participate.
- Limited income for veToken holders - veToken holders can earn zero or limited passive income with long lock up period.
- Expensive voting power -Users must buy and lock governance tokens in order to gain voting rights without earning passive income.
Wombat Exchange is a Multi-chain, hyper-efficient stableswap that implements the veToken model on its governance token, WOM. WOM holders can lock their tokens as veWOM on Wombat to own governance rights and earn higher APR as liquidity providers in the platform. veWOM holders have the ability to vote on the Wombat Exchange voting gauge to allocate WOM emissions across pools on the exchange and receive bribes for their votes. In order to get the best benefits of veWOM, users must lock their WOM tokens for 4 years. Many users are not comfortable with locking their tokens for a long period of time without efficiently earning passive income.
Magpie brings a solution that helps Wombat to solve the above issues. The platform allows WOM holders to earn passive income, offers Wombat voters cost-effective voting power and allows liquidity providers to earn boosted APR without the need to lock WOM tokens.
Magpie offers WOM holders the opportunity to earn high rewards by converting their governance tokens into mWOM. mWOM can be staked on Magpie to earn boosted revenue share from the platform.
When users convert their WOM into mWOM, Magpie automatically locks all the converted WOM as veWOM on Wombat Exchange. This mechanism allows WOM holders to earn increased rewards while it entitles Magpie to governance rights and boosted APR as a liquidity provider on Wombat Exchange.
Thanks to Magpie's veWOM holdings, liquidity providers can deposit their Stablecoins, BNB, Liquid Staked BNB, frxETH, ETH, WOM, mWOM on the platform to earn boosted rewards without the need to lock any WOM by themselves.
The voting power that Magpie accumulates by holding veWOM is shared between vlMGP holders, allowing them to participate on Wombat’s governance cost-effectively. Vote-Locked MGP holders earn revenue share from the platform and can participate in the governance of Wombat Exchange cost-effectively to earn bribes at the sam time. Users must wait 60 days to fully unlock their locked MGP.
- Boosted income for WOM holders - WOM holders can convert their tokens into mWOM to earn revenue share from Magpie.
- Get a diverse user base - Risk-averse liquidity providers can earn boosted yield without the need of holding veWOM by themselves.
- Lower the voting bar - Magpie provides a cost-effective way to acquire voting rights on Wombat by leveraging the veWOM holdings accumulated by the platform.
Magpie starts from the integration with Wombat Exchange, and may expand to more veTokenomics protocols. In the long term, Magpie envisions to offer veTokenomics as a service to help other protocols easily transform into veTokenomics model and enjoy the maximum benefits of this fantastic tokenomics design.