Wombat Exchange is known as a Stableswap platform on BNB Chain. But not only focusing on product development, Wombat also develops its own ecosystem to bring the project to a new level.
So what is noteworthy about the Wombat Exchange ecosystem? Let’s find out in this article!
To better understand the project as well as the Wombat Exchange ecosystem, you can read some of the following articles:
- What is Wombat Exchange? Wombat Exchange cryptocurrency overview
- What is Wombex Finance? Wombex Finance cryptocurrency overview
- What is Quoll Finance? Quoll Finance cryptocurrency overview
- What is Magpie XYZ? Magpie cryptocurrency overview
Wombat Exchange Ecosystem Overview
First, Wombat Exchange is a trading platform that supports stable assets. It is the product that offers the best price and user experience. Thanks to its later incarnation, it has inherited and improved old technologies to create the most complete products for users.
Unlike other Layer1 ecosystems, Wombat’s ecosystem only focuses on maximizing profits and user experience. In particular, the ecosystem greatly supports Wombat’s liquidity.
Wombat’s ecosystem is supported and developed from the early stages by BNB Chain and Wombat itself. So projects in the ecosystem are built quickly and the products are very complete, bringing the best user experience.
There are not many projects developing on the Wombat ecosystem, but projects have been supporting Wombat Exchange a lot. In addition, Wombat and its ecosystem also link up with other projects to provide products and attract additional liquidity. Wombat is integrated by 1Inch, the leading Dex Aggregator exchange to support the best stable asset trading. With Stader Labs and pStake, connect with Wombat to Farm BNBx and stkBNB.
Wombat as well as its ecosystem has great potential as it is an extremely important piece of the puzzle on the BNB Chain. With the highest TVL ever reaching $215M on September 6, 2022. Wombat was invested in the Seed round by Binance Labs to receive 50M WOM tokens. In addition, Binance received an additional 150M WOM tokens to support Marketing and project development.
The project development team is people with a lot of experience building, developing and managing products in both Crypto and traditional markets. Thanks to that, Wombat is oriented to be the most important ecosystem on BNB Chain. Not stopping there, Wombat will also be the perfect piece for other networks when connecting Multi and Cross Chain. And soon Wombat will expand to Polygon and Arbitrum, Layer2 has large users and TVL.
Featured Projects on the Wombat Exchange Ecosystem
Because it is the ecosystem of a DEX specializing in stable assets, there are not too many development projects. And there aren’t many models that work either. On Wombat’s ecosystem, projects only focus on optimizing profits with the veTokens model and providing a good user experience.
Wombat uses the veTokens model like Curve Finance. So projects in Wombat’s ecosystem are aligning to support this model. They compete directly with each other for WOM Tokens and liquidity from users.
Normally, WOM Token holders when Staking on Wombat Exchange will be locked until the end of the term. But through projects on the ecosystem, users can escape the WOM lock position easily.
Wombex Finance
Wombex Finace is a project that only focuses on supporting liquidity and users with Wombat’s veWOM model. Currently a project with TVL Top 1 in the Wombat Exchange ecosystem. And is the project holding the most veWOM. It is possible thanks to the extremely friendly user interface on Wombex.
The compensation mechanism is also clear: Wombex will charge 15% of the bonus received from Wombat. Then distribute 5% goes to wmxWOM bettors, paid in WOM, 10% goes to vlWMX bettors, paid in wmxWOM. This distribution method is very attractive for vlWMX holders.
Magpie XYZ
A project that supports users to farm high profits with the veWOM model of Wombat Exchange. Currently the project only supports Wombat Exchange. But in the future Magpie will support many other projects using the veTokens model. Magpie has the 2nd highest TVL in the Wombat ecosystem. The project uses the total rewards received from Wombat to distribute 80% to liquidity providers, 12% to mWOM stakers, 8% to vlMGP holders.
Quoll Finance
Like the two projects above, Quoll Finance supports Wombat Exchange’s veWOM model. This is the project with the lowest TVL in the Wombat ecosystem. But Quoll Finance stands out more thanks to its vision and product development orientation. In the future, the project will develop Multichain and integrate Layer Zero and Stargate to bring users and cash flow from other platforms to the Wombat Exchange ecosystem. That is where Quoll Finance can compete with other projects in the ecosystem. A total of 20% fees are collected on all rewards that the Farm project receives on Wombat. That fee will be distributed 10% for qWOM bettors, 5% to QUO bettors, and the remaining 5% is divided between the treasury or other incentive pools.
WOM Wars
WOM Wars is also known as Wombat Wars, just like Curve Wars. It is a war for the protocol’s governance token. With Wombat, projects compete for the WOM Token. Because according to the veToken model, holders of many veWOM will receive many protocol fee rewards, vote on reward distribution to Pools and especially will receive more profits when the Farm is liquid.
Both liquidity adders and WOM holders gain more profits when Farming on ecosystem projects. That accidentally makes projects in the ecosystem more attractive to users. But it still does not affect Wombat’s development, but on the contrary, it helps Wombat develop faster.
Voting function on Wombat launched on January 18, 2023. That is what started the war, fighting for WOM Tokens or WOM Wars.
The battle is starting to heat up and projects across the ecosystem possess a lot of veWOM. Leading the way is Wombex, holding more than 14M WOM Tokens. Thanks to that, TVL on Wombex is the largest in the Wombat ecosystem. Because Wombex only focuses on support for Wombat and the ecosystem, the products Wombex provides are the most optimal. But the remaining projects are also improving day by day. Especially Quoll Finance, the project promises to bring more liquidity to Wombat Exchange when connecting Layer Zero and integrating Multichain.
Personal Projection About WOM Wars
The WOM Wars war has not yet received much attention from the community because the war has just begun and the Wombat ecosystem is not large enough. Exactly, WOM Wars just heated up when Wombat unlocked the administrative Voting feature and distributed rewards. Below is my perspective on WOM Wars:
- WOM Wars takes place creating momentum for the price of WOM, Wombat’s governance token, to increase in price in the future. Because WOM Wars makes projects compete to attract more WOM Tokens. The project in the ecosystem that holds more WOM brings more profit to users.
- WOM Wars also causes the price of Tokens in the ecosystem to increase. Because holding the project’s Token in the ecosystem will share the project’s revenue. And participate in offering rewards on Wombat through veWOM that the project itself is maintaining.
- Currently, the daily trading volume on Wombat is below $10M. The project has a revenue of about $1K per day at that volume. This number is quite low, but in the future we can expect higher. Because recently Wombat was integrated into 1Inch and soon Wombat will support Arbitrum and Polygon. Arbitrum and Polygon have extremely large TVL so it will help Wombat grow faster. At that time, the high revenue on Wombat led to the WOM Wars becoming even more fierce.
Summary
The Wombat ecosystem isn’t huge, but it’s growing. It is an ecosystem heavily supported by BNB Chain and is an extremely important piece of the ecosystem. The explosion of WOM Wars with the veTokens model is helping Wombat gain market share. Along with long-term development orientation, the Wombat ecosystem will likely help BNB Chain compete with other Chains.
So I have clearly presented the Wombat Exchange ecosystem and the WOM Wars. Hope this article provides you with a lot of useful knowledge!
