What is Wombat Exchange (WOM)?

Wombat Exchange is a scalable stablecoin DEX that enables users to swap stablecoins at hyper-efficient exchange rates with minimal slippage and earn optimal yield on their assets via single-staking pools. Wombat removes scalability barriers, adopts an asset-to-liability model to minimize slippage, and has a simple and accessible interface with pure single-token pool design. It provides a foundation for DeFi to build upon with single-token LP tokens, ideal for borrowing and lending protocols and trading platforms.

The project was launched in 2022 and is backed by Binance Labs, Animoca Brands, Shima Capital, Hailstone Ventures, etc.

How Wombat Exchange (WOM) Works

Wombat Exchange utilizes four mechanisms below for the best stablecoin swapping:

- Coverage Ratio is a metric used to gauge the health of a liquidity pool by comparing assets to liabilities. Each stablecoin in Wombat's pools has its own Coverage Ratio, and a higher ratio indicates a lower risk of default. To prevent withdrawal arbitrage from draining the pool, an incentive system is used, offering deposit gains and withdrawal fees. APR is distinct from Coverage Ratio, and Wombat has an Equilibrium Coverage Ratio (ECR) that monitors its liquidity pools' overall health and manages risks.

- Invariant Curve is a mechanism that enables the addition or removal of an unlimited number of assets on demand, creating flexibility in asset weights. It has the ability to reward tokens in the pool with higher buy pressure, thereby improving liquidity. Also, Wombat Exchange allows the provision of single-sided liquidity.

- Global Equilibrium Coverage Ratio measures the coverage of tokens returning to equilibrium. When the pool is close to equilibrium, token exchange occurs similarly to CFMM. Unlimited liquidity is provided near the tail when it deviates from equilibrium, further ensuring the stability of the pool.

- Side Pool and Dynamic Pool are two special pools of Wombat designed for riskier stablecoins, with stricter requirements on volatile assets' coverage ratios and supply limits to ensure safety.

How Many Wombat Exchange (WOM) Tokens Are in Circulation?

WOM is the native token of the platform that powers all transactions. It has 1,000,000,000 in total supply and 38,212,565 in circulating supply.

How to Buy Wombat Exchange (WOM)

Consider investing in Wombat Exchange (WOM)? It only takes 2 minutes to create an account on Bitget and start trading WOM. 

Check out the available WOM trading pairs on Bitget!

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Wombat Exchange (WOM) Resources

Official Website

Official Whitepaper

Official Documents