Magpie XYZ
Magpie XYZ

Wombat Exchange

Understanding Wombat Exchange

What is Wombat Exchange?

Wombat Exchange is a scalable, low slippage, and single-sided staking swapper for stablecoins and pegged assets. Users can become liquidity providers on Wombat by depositing their assets in single-sided pools.

What is WOM?

WOM is Wombat Exchange Governance Token.

What is veWOM?

veWOM is the locked version of WOM.
WOM holders can lock their tokens as veWOM on Wombat get benefits on the platform. Wombat offers users different lock up periods, from 7 days up to 4 years. Longer the lock up, more benefits. More veWOM, more benefits.

What are the benefits of holding veWOM?

🔹 Yield Boosting: WOM holders can lock their tokens as veWOM to earn boosted WOM emissions as liquidity providers on Wombat. veWOM main utility is to enable its holders to earn boosted yields when depositing stablecoins, BNB or Liquid BNB on Wombat Exchange. The boosted emissions are proportional to the locking period duration and the amount of WOM locked by users.
🔹 Governance Rights: Although yet to be established, veWOM is critical for Wombat's governance system. veWOM holders can vote to allocate WOM emissions across different Wombat pools. The voting weight is proportional to the locking period and the amount of WOM locked by users. More time locked, more voting weight.
🔹 Bribes: Once Wombat's governance goes live, veWOM holders will potentially receive bribes from Wombat partners. Different protocols may pay users to rent their voting power and supporting their pools.

How can Magpie support Wombat Exchange?

Magpie has identified several areas where it can help provide a more efficient DeFi experience for users while supporting Wombat's long-term development at the same time.
🔹 Liquidity providers cannot earn boosted yields without locking WOM tokens.
🔹 Voters cannot earn passive income while their WOM tokens are locked.
🔹 WOM holders cannot earn boosted rewards.