🟣Wombat Exchange

Understanding Wombat Exchange

What is Wombat Exchange?

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

What is WOM?

WOM is Wombat Exchange's Governance Token.

What is veWOM?

veWOM is the locked version of WOM.

WOM holders can lock their tokens as veWOM on Wombat to 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 or LSTs on Wombat Exchange. The boosted emissions are proportional to the locking period duration and the amount of WOM locked as veWOM by users.

🔹 Governance Rights: veWOM is critical for Wombat's governance system. veWOM holders can vote to influence decision-making on Wombat Eschange.

🔹 Voting Incentives: veWOM holders can earn voting incentives from Wombat partners. Various protocols offer rewards to users in exchange for their voting power and supporting their pools. The voting weight is proportional to the locking period and the amount of WOM locked by users. More time locked, more voting weight.

How can Wompie support Wombat Exchange?

Wompie 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 considerable rewards while their WOM tokens are locked.

🔹 WOM holders cannot earn boosted rewards.