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Wombat Exchange

Wombat Exchange is a and multi-chain stableswap built natively on the and backed by . [1][2]

Overview

Wombat Exchange was founded in 2021 by Alex Lee[4], a Quant Trader and Blockchain Engineer with experience in , project management, and portfolio management.[3] The platform offers scalable equilibrium, minimization, and a procedure that streamlines the process for (LPs) to earn yield. [5][1]

In December 2021, Wombat Exchange introduced a contributor program for members of its community to contribute to roles like design, content creation, moderation, localization, ideation, and feedback. Qualified contributors are rewarded seats and IDO slots. [14]

In January 2022, Wombat Exchange launched its social campaign that lasted from January 25th to January 28th, 2022. The campaign aimed to encourage users to join the viralsweep campaign, complete listed tasks, and invite friends to join the campaign to earn extra entries. The top 1000 users with the most entries were granted access to the testnet. Additionally, a total of USD$30,000 worth of $WOM and $BNB rewards were distributed based on the total number of entries. [15]

On January 29, 2022, Wombat Exchange was selected for the Binance Smart Chain MVB IV Incubation Program. The MVB IV program was designed to “accelerate the top dApps and builders in the BSC ecosystem.” and Wombat's goal was to enter the Final Top Players Selection to receive investment offers, gas incentives, tech and marketing support from Binance, and a fast track to a potential listing on Binance’s CEX. [16]

On February 28, 2022, Wombat released its white paper[18] detailing the technology and design behind the exchange. [17]

On March 31, 2022, Mr. Duckbill from Platypus Finance[21] joined the exchange as a strategic advisor. Mr. Duckbill is the founder of Platypus Finance, an Avalanche native stableswap backed by Three Arrows Capital and Defiance. [20]

“DeFi is a space that yearns for constant innovation and Wombat embodies this mantra well. I am supportive of Wombat’s utility, vision, and branding and I look forward to growing the project together with its founders” - Mr. Duckbill, Founder of Platypus Finance

On April 4, 2022, Wombat Exchange welcomed Oxjun, a Ph.D. holder in Computer Science from Cornell University, specializing in cryptography and security into the team as an Advisor. [22]

Wombat launched its beta on April 25, 2022. [24]

On August 23, 2022, the exchange announced that after earning the most votes from the community, it could officially host its IFO "Initial Farm Offering" on . The IFO was slated for 30th, August 2022 with $2,100,000 USD to be raised in CAKE tokens. [37]

On January 11th, 2024, Alex Lee announced Wombat 2.0. This upgrade represents a shift from focusing on B2B trading integrations to targeting consumers in the B2C space. Despite the existing success, Wombat aims to expand its user base by simplifying its platform and fostering user-friendly interactions. Initiatives like single-sided and prioritizing simplicity in design and functionality underscore this approach. Wombat plans to collaborate with GameFi and SocialFi sectors to onboard a broader audience to . [40]

Funding Rounds

 invested in Wombat Exchange in its seed round in November 2021. The amount of the investment was not disclosed, but Wombat’s valuation increased to $70 million after the Series A funding in March 2022. [13]

On March 26, 2022, the exchange announced the $5.25 Million Series A funding led by . Additional investors in the round included TPS Capital, GSR, Zokyo, Lunar Station, Eureka Trading, Silverstone, Unanimous Capital, and CryptoWesearch. [23]

"Capital from this round will accelerate Wombat’s product development and expansion". - the blog stated

On April 18, 2022, Wombat Exchange raised new funds in a venture round led by Shima Capital and supported by Jump Crypto and Wormhole. [23]

"This latest round of funding will help Wombat gain even more momentum in its mission to be the best stableswap in existence." - the blog stated[23]

WOM Tokenomics

Wombat token ($WOM) is the native and governance token of Wombat Exchange, and it officially launched on the 30th of August 2022. [12]

Distribution & Vesting

The total supply of $WOM is 1,000,000,000 tokens. 7.5% was allocated to Private Sale, 3.0% to Strategic Sale, 2.8% to PCS IFO, 0.6% to Syrup Pools, 5% to Binance Seed, 15% to Binance Partnership, 20% to Team and Advisors, 20% as Liquidity Incentive, 0.1% to Marketing events, 26% to the Treasury. [25][26]wiki

Utility

WOM token holders can participate and vote on governance decisions, they can earn WOM tokens as rewards by providing liquidity with to the , and users can also earn additional WOM from the boosting pool by locking WOM tokens. The Boosting Pool incorporates voting escrow WOM (veWOM) for rewards accrual. Locking any amount of WOM applies a boost to all stablecoin pools. [12]

Tokenomics Changes

In February 2024, in preparation for Wombat 2.0, emissions were decreased across all chains. The focus was on efficiency rather than striving for high figures. [40][45]

WomPets

WomPets are integrated into the Wombat Gamified Bribe Market 2.0, a collaborative effort with , an investor in Wombat Exchange and a platform in the Gaming ecosystem. One of WomPets' key features is the introduction of WomPets Points (WPP), a pioneering cross-chain and cross-platform point system. Users earn WPPs through swapping, staking, on Wombat Exchange, or engaging with affiliated projects like Stoat Finance. Additionally, WomPets NFTs grants access to WomPets mini-games, offering real reward. [40][45]

WomPets aims to address a prevalent issue in DEXes, specifically the continuous emission of tokens to incentivize liquidity providers. This model often leads to liquidity challenges. While previous solutions like the bribe market introduced by attempted to mitigate this issue, they also introduced complexities and inefficiencies. WomPets introduces a new GameFi-oriented approach that incentivizes trading and , benefiting $veWOM holders and striving for a more sustainable and user-friendly model. [40][45]

On March 26th, 2024, the first of WomPets was announced, which distributed 1,111 of 9,999 pixelated WomPets . [45]

Team

Partnerships

Wombat x BNB Chain Grant Program

Unveiled on September 28, 2022, the joint grant program aims to accelerate the growth of new projects through support like go-to-market strategy, fundraising, business development, and an extensive network. Mentoring is provided and projects will have a round-the-clock direct line of communication with the Wombat x BNB Chain team for questions. [27]

"BNB Chain and Wombat love ambitious projects like us! With a firm goal and a bold vision, quality projects can showcase how they will bring value to the Wombat ecosystem." - the blog stated on how projects are selected. [27]

Wombat Exchange x TrueUSD

On November 29, 2022, Wombat Exchange announced a partnership with - a that can be minted and redeemed 1-for-1 for US Dollars. [28]

"We’re honoured to be TUSD’s partner in pushing for its adoption on the BNB Chain after deploying for over 3 years with more than 110 million in supply. TUSD will be listed under our Innovation Pool and provide emissions for liquidity." - the blog stated[28]

Wombat x FRAX

On December 29, 2022, Wombat Exchange announced its partnership with to boost the adoption and liquidity of FRAX on the and provide more yield opportunities and options to users of Wombat Exchange. [29]

"FRAX will be listed under our Innovation Pool where WOM emissions will be provided to support liquidity. We’re looking forward to seeing how FRAX will do in the Wombat ecosystem, especially when the bribery system is live!" - the blog stated [29]

Wombat x Arbitrum

On March 27, 2023, Wombat Exchange announced its launch on . The launch would enable users to swap stablecoins with minimum slippage and provide single-sided liquidity. In addition, the entire Wombat ecosystem, including Convex forks namely Wombex, Magpie, and Quoll, also moved to Arbitrum, further expanding the exchange's reach and providing more opportunities for users. [32]

"By deploying to Arbitrum One, we aim to bring the hyper-efficient multichain stableswap experience to both the Arbitrum and BNB Chain communities, creating a mutually beneficial environment for the entire DeFi ecosystem."[32]

Wombat x Binance Earn

On May 5, 2023, Wombat announced a partnership with Binance Earn to reveal WBETH (Wrapped Beacon ETH). WBETH is a liquid staking token representation of 1 BETH, with a conversion rate that starts at 1:1. [33]

WBETH (Wrapped Beacon ETH) allows users to access protocols and services beyond , without sacrificing eligibility to collect the coveted ETH Staking rewards earned by BETH. [33]

Wombat x SABLE

On December 12th, 2023, Wombat announced a partnership with the decentralized stablecoin $SABLE to integrate USDS into Wombat Exchange. This collaboration aimed to enhance the usability of Wombat Exchange by incorporating $SABLE's stablecoin. Additionally, the integration explored potential synergies between Wombat's cross-chain and multi-chain functionalities and $SABLE's protocols. [41]

Wombat x bloXroute Labs

On March 26th, 2024, Wombat announced its partnership with bloXroute, a global infrastructure provider, to introduce frontrunning and sandwich attack protection measures for its users. By integrating bloXroute’s MEV Protection Engine into Wombat Exchange, the platform aimed to shield itself and its users from the financial losses linked with frontrunning and sandwich attacks. [42]

Services

Volatile Pool AMM

On February 2nd, 2024, Wombat introduced a novel, single-sided Volatile Pool algorithm in the sector. This innovation offers an -less and user-friendly environment for trading single assets across various categories, including GameFi assets. The introduction of the single-sided volatile asset pool aims to broaden Wombat Exchange into a comprehensive multi-chain and cross-chain , expanding its trading capabilities to include non-pegged volatile assets such as and GameFi assets. The focus on refining the proprietary algorithm aims to support high trading volumes with minimal , ultimately delivering sustainable yields for Wombat Exchange users. [43][44]

The first single-sided Volatile Pool was launched on the platform in July 2024 with Binance Bitcoin (BTCB) from Binance and BNB being the first token listing onboarding. [46]

Voting Guage

On January 18, 2023, Wombat launched Voting Guage, a feature giving veWOM holders governance control on WOM emissions for each gauge. A gauge refers to a token in a pool like HAY in the Side Pool or FRAX in the innovation pool. The more votes a pool gets, the more WOM emissions will be allocated to it. Hence, the APR will be higher for that particular pool, attracting better liquidity.[31]

To participate, WOM holders can lock their WOM from 7 days to 4 years to mint veWOM. veWOM boosts APR and also gives voting power. By holding it, users can cast their vote on the Gauge Voting page. The more veWOM owned, the stronger the power to direct rewards wherever is best suited. [31]

On September 27, 2023, Wombat's yield boosting & voting gauge went live on . This enables users to bridge their $WOM to and lock for $veWOM to boost yields & also vote on gauges to earn bribes. [38][39]

Cross Chain Pool Beta Launch

The Alpha Cross Chain Pool launched on September 6, 2023. The feature allows users to swap stablecoins like and across , , and . [36]

"By utilizing the concept of coverage ratio, the cross-chain pool improves capital efficiency, allowing for optimal swap rates even with relatively low amounts of funds. Wombat leverages the Wormhole’s established cross-chain security and decentralization, adding an extra layer of reliability for inter-chain transactions." - the blog stated[36]

Wombat's all-in-one swapping feature saves time and reduces transaction costs compared to individual swaps across protocols, without additional fees or delays.[36]

Wombat on Ethereum

Wombat Exchange officially expanded to on August 4, 2023. [34][35]

"This launch marks a monumental moment in our mission to build the premier multi-chain stableswap ecosystem. Ethereum’s thriving landscape and extensive liquidity make it the perfect next home for Wombat." - the blog stated[34]

To celebrate the milestone, Wombat partnered with protocols like , , , , and to bring special rewards and incentives to users during launch week. In the initial release, swaps and pools were activated so Ethereum users could experience core Wombat functionality like pegged asset swapping with minimum slippage and single-sided provisions. $WOM token can also bridge to ETH via the portal. [34][35]

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Wombat Exchange

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