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Understanding Wombat Exchange
Wombat Exchange is a Multi-chain, 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.
WOM is Wombat Exchange Governance Token.
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.
🔹 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: 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: veWOM holders can earn bribes from Wombat partners. Various protocols offer bribes to users in exchange for renting their voting power and supporting their pools.
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.