Wombat Exchange Review: Stableswap Platform Advances The Growth Of DeFi

March 9, 2023 - Around 8 mins mins to read

Stablecoins are incredibly significant in the crypto market, hence Wombat Exchange was created to enable users to trade stablecoins with little slippage and boost capital efficiency. Wombat Exchange is a project in the stableswap sector.

Current AMMs sometimes demand users to provide liquidity to pools in pairs (such as Uniswap) or to have assets in the pool with the same liquidity amount (like Curve Finance). This is harmful to users and lowers their potential revenues.

Wombat Exchange has created an algorithm that reduces gas costs and boosts capital efficiency by reducing liquidity limits to increase scalability. Let’s learn details about this project with Coincu through this Wombat Exchange Review article.

Wombat Exchange Review: Stableswap Platform Advances The Growth Of DeFi

Overview

Wombat Exchange is a single-sided AMM where users may exchange stablecoins. Wombat is based on BNB Chain, with intentions to provide multi-chain functionality in the future.

Wombat’s smart contract has been inspected by units like Hacken, Peckshield, and Zokyo. Moreover, the initiative collaborates with InsurAce to ensure users’ valuables.

Curve and Ellipsis are two well-known efforts in the stableswap space. These two techniques create distinct liquidity pools. Even though USDT is the same asset, it is kept in distinct liquidity pools with differing slippage rates.

Unfortunately, banks in the conventional market do not adopt this strategy since it is inefficient in terms of transaction size. In the same way, Wombat liquidity pools are built for stablecoins, USD in USD – EUR and USD – AUD are pooled together for the best slippage and liquidity. As a result, Wombat’s general liquidity pool will be higher, reducing slippage for project users substantially. Now, the Wombat Exchange Review article will discuss the special features of the project.

Features

Wombat Exchange is a single-sided AMM where users may exchange stablecoins. Wombat is based on BNB Chain, with intentions to provide multi-chain functionality in the future.

Wombat’s smart contract has been inspected by units like Hacken, Peckshield, and Zokyo. Moreover, the initiative collaborates with InsurAce to ensure users’ valuables.

Unfortunately, banks in the conventional market do not adopt this strategy since it is inefficient in terms of transaction size. In the same way, Wombat liquidity pools are built for stablecoins, USD in USD – EUR, and USD – AUD are pooled together for the best slippage and liquidity. As a result, Wombat’s general liquidity pool will be higher, reducing slippage for project users substantially.

Wombat’s innovation is the use of what is known in conventional finance as the Coverage Ratio. The capacity of a corporation to cover its debt obligations with its assets is referred to as its coverage ratio. In the case of Wombat, each stablecoin is its own company with its own Coverage Ratio.

	Other Stableswap Protocols	Wombat Exchange
Design Liquid Pool	Closed strategy	Open strategy
How to deposit assets	Multiple tokens	One token
UX	Complex	Simple
Slippage	Low	Very low
Asset Expansion	Limit	Good
Capital efficiency	Good	Better
Pure LP Tokens	No	Yes
De-Peg Protection	No	Yes

Wombat Exchange has announced plans to introduce Fee Sharing, a new reward-generating function, to the BNB Chain ecosystem. As customers use the stableswap Decentralized Exchange (DEX), liquidity providers will get incentives.

On February 23, the DEX detailed the functionality in a Twitter thread. Fee sharing, as the name indicates, guarantees that Wombat LP gets 50% of the fees produced by consumers that use its unique offers through the website or any DEX aggregator. The remaining 50% will be deposited in the Wombat treasury.

The tool would provide benefits to LPs even if they do not stake assets on the platform. Stakeholders will get extra benefits for locking their WOM tokens and the fee-sharing Annual Percentage Rate (APR). The approach is designed to reward faithful LPs on the protocol’s hyper-efficient multi-chain DEX.

The difference of Wombat Exchange

Wombat Exchange uses a revolutionary coverage-ratio-based technique to avoid 100% temporary loss for liquidity providers.
Slippage Reduction: the platform uses an asset-to-liability approach to reduce slippage when customers trade on the platform.
The UI/UX is really user-friendly.
LP Token may be established and grown on different DeFi platforms on the BNB Chain ecosystem, such as lending and borrowing, yield farming, staking, and so on.

WOM token

Basic information

Token Name: Wombat Exchange
Ticker: WOM
Blockchain: BNB Chain
Token Standard: Bep-20
Contract: 0xad6742a35fb341a9cc6ad674738dd8da98b94fb1
Token type: Governance
Total Supply: 1,000,000,000 WOM
Circulating Supply: 48,061,970 WOM

Token Allocation

Private Sale: 7.5%
Strategic Sales: 3%
PancakeSwap IFO: 2.8%
Syrup Pools: 0.6%
Binance Seed: 5%
Binance Partnership: 15%
Team: 20%
Liquidity incentive: 20%
Marketing: 0.1%
Treasury: 26%

Allocation	Token Amount	Percentage	Lock-up period
Private Sale	75.0M	7.5%	2.5% initial unlock, cliff for 3 months, afterwards monthly linear vesting over 24 months.
Strategic Sale	30.0M	3.0%	2.5% initial unlock, cliff for 3 months, afterwards monthly linear vesting over 24 months.
PancakeSwap IFO	28.0M	2.8%	20% initial unlock, block-by-block linear vesting over 3 months.
Syrup Pools	6.0M	0.6%	0% initial unlock, block-by-block linear vesting over 2 months.
Binance Seed	50.0M	5.0%	0% initial unlock, vesting every 6 months over 5 years.
Binance Partnership	150.0M	15.0%	0% initial unlock, vesting every 6 months over 5 years.
Team	200.0M	20.0%	0% initial unlock, vesting every 6 months over 5 years.
Liquidity Incentive	200.0M	20.0%	2% initial unlock, maximum unlock for first 2 months is 2% per month, with 1% per month thereafter, though actual deployment of unlocked tokens, depending on market conditions, may be lower.
Marketing	1.0M	0.1%	50% initial unlock with monthly linear vesting over 3 months.
Treasury	260.0M	26.0%	1% initial unlock, weekly linear vesting over 36 months.
Total	1.00B

Release Schedule

Benefits of holding WOM tokens

WOM is Wombat Exchange’s governance token and may be used in the following scenarios:

Governance: Having WOM tokens let investors vote on governance choices.
Incentivize liquidity: By providing liquidity via stablecoins, investors may obtain WOM token incentives.
Boosting: By locking WOM coins and receiving veWOM, investors may receive WOM tokens from the Boosting Pool.

How to earn WOM token

To obtain incentives, investors may purchase WOM on supported exchanges or lock WOM in Wombat Exchange. Currently, WOM is traded at two exchanges PancakeSwap, and Bilaxy.

Core Team

Wombat Exchange’s development team consists of exceptional and skilled individuals in their respective fields, including:

Founder: Alex Lee

Alex formerly worked as a Blockchain Engineer with substantial knowledge of cryptocurrency projects and portfolio management.

CTO (Chief Technology Officer): Daniel Chan

Daniel is a Blockchain Engineer who was an early adopter of the cryptocurrency sector. Daniel’s experience includes DeFi, conventional banking, and social companies.

CMO (Chief Marketing Officer): Ray Wong

Ray is a marketing professional that works on initiatives in the cryptocurrency sector. Experienced in constructing projects from the start-up phase through the project’s successful completion.

Advisor: Mr. DuckBill

DuckBill is the creator of the Platypus project, which is also a StableSwap on the Avalanche environment. DuckBill is a Crypto market early adopter with expertise in developing a tokenomic model for Crypto companies.

Advisor: 0xJun

0xJun has a Doctorate in Computer Science from Cornell University and has worked with proofs and cryptography.

Investor, Partner

Binance Labs announced a strategic investment in the Wombat Exchange project on November 1, 2021.

Wombat Exchange received $5.25 million in Series A investment from Animoca Brands and Hailstone Ventures on March 16, 2022. Other investors in the round include Binance Labs, BNB Chain, Jump, and others. The fundraising round aided in increasing Wombat Exchange’s value to $70 million while also boosting product development and growth.

Wombat Exchange successfully raised an undisclosed sum and value headed by Shima Capital, Wormhole Capital, and Jump Capital on April 19, 2022.

Key project partners include:

Okse Wallet & Card: A Visa card that enables customers to utilize Google Pay, iPay, and Samsung Pay to make payments. This collaboration enables customers to utilize WOM tokens to purchase at more than 60 million businesses in more than 170 countries.
Stader: is a BNB Chain liquid staking platform. This collaboration enables investors to stake BNB on Stader in order to obtain BNBx and improve yield staking on Wombat.

Updates and Roadmaps

Wombat Exchange has currently performed the following activities:

Participate in Binance Incubation and Binance MVBIV.
The BNB Chain has officially launched.
Increase the number of stablecoins and collaborate with other bridge protocols.
The permission side pool and dynamic pool have been launched.
veWOM Gauge Voting is now available.
Wombat Incubation Laboratories will be launched.
Include additional stablecoins and collaborate with several other protocols.
Set up multichain.
Add bridged stablecoins.

Going forward, Wombat Exchange plans to:

Q1 2023

Launch of gauge voting
Add back liquid staking pools
Flash Loan
Multichain/Cross-Chain adoption: Polygon & Arbitrium

Q2 2023

Multichain/Cross-Chain adoption: Ethereum, Optimism, Fantom, Avalanche simultaneously (depending on the progress)
Governance Launch

Conclusion of Wombat Exchange Review

Wombat Exchange is a project that drew a lot of interest from investors in the past when it IFO on the PancakeSwap platform and reached a TVL of up to 200 million USD within just a few days of introduction. Wombat’s 1-token liquidity pool concept solves the liquidity scalability issues that projects like Curve Finance face, and it promises to evolve further once the product is multi-chain deployed.

Moreover, Wombat is one of the stableswap exchanges that has received a significant amount of funding from large investors such as Binance Labs, and Animoca Brands…. a figure that indicates the investors’ faith in the project.

Wombat Exchange is a critical component of the BNB Chain ecosystem. But, if large stablecoins like as Tether and Circle formally launch on this network, the struggle will be more intense. Hopefully the Wombat Exchange Review article has helped you understand more about the project.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Coincu News

DeFi Reviews

Wombat Exchange Review: Stableswap Platform Advances The Growth Of DeFi

Stablecoins are incredibly significant in the crypto market, hence Wombat Exchange was created to enable users to trade stablecoins with little slippage and boost capital efficiency. Wombat Exchange is a project in the stableswap sector.

Current AMMs sometimes demand users to provide liquidity to pools in pairs (such as Uniswap) or to have assets in the pool with the same liquidity amount (like Curve Finance). This is harmful to users and lowers their potential revenues.

Wombat Exchange has created an algorithm that reduces gas costs and boosts capital efficiency by reducing liquidity limits to increase scalability. Let’s learn details about this project with Coincu through this Wombat Exchange Review article.

Overview

Wombat Exchange is a single-sided AMM where users may exchange stablecoins. Wombat is based on BNB Chain, with intentions to provide multi-chain functionality in the future.

Wombat’s smart contract has been inspected by units like Hacken, Peckshield, and Zokyo. Moreover, the initiative collaborates with InsurAce to ensure users’ valuables.

Features

Wombat Exchange is a single-sided AMM where users may exchange stablecoins. Wombat is based on BNB Chain, with intentions to provide multi-chain functionality in the future.

Wombat’s smart contract has been inspected by units like Hacken, Peckshield, and Zokyo. Moreover, the initiative collaborates with InsurAce to ensure users’ valuables.

Unfortunately, banks in the conventional market do not adopt this strategy since it is inefficient in terms of transaction size. In the same way, Wombat liquidity pools are built for stablecoins, USD in USD – EUR, and USD – AUD are pooled together for the best slippage and liquidity. As a result, Wombat’s general liquidity pool will be higher, reducing slippage for project users substantially.

	Other Stableswap Protocols	Wombat Exchange
Design Liquid Pool	Closed strategy	Open strategy
How to deposit assets	Multiple tokens	One token
UX	Complex	Simple
Slippage	Low	Very low
Asset Expansion	Limit	Good
Capital efficiency	Good	Better
Pure LP Tokens	No	Yes
De-Peg Protection	No	Yes

The difference of Wombat Exchange

Wombat Exchange uses a revolutionary coverage-ratio-based technique to avoid 100% temporary loss for liquidity providers.
Slippage Reduction: the platform uses an asset-to-liability approach to reduce slippage when customers trade on the platform.
The UI/UX is really user-friendly.
LP Token may be established and grown on different DeFi platforms on the BNB Chain ecosystem, such as lending and borrowing, yield farming, staking, and so on.