Wombex.finance
Search
⌃K

Basics

The basics everyone should understand before starting using Wombex

Terms

APY (APR) - Annual Percentage Yield/Rate The profit you receive for your investments per year.
APY = [(Investments + Profit)/Investments] * (time/year)
Projected APY (APR) is APY remains like this for the next year. For example, your $1000 position in Wombex earned $1 during 24h as WOM and WMX tokens USD equivalent. Multiplying by 365 (number of days per year) and assuming that in the remaining year your position will receive $1 per day, we get $365 per year or $365/$1000 = 0.365 or 36.5% APR per year.
APR in Wombex.Finance is calculated with all reward tokens in mind. That means if your deposit receives WMX, WOM, wmxWOM, or any other token as LP rewards, the APR number displayed in the UI will account for all of them. Note that APR numbers always change since the TVL in the specific pool and USD equivalent of rewards (WOM, WMX are volatile tokens) are constantly evolving as well as market conditions.

Tokens in Wombex.finance

  • WOM is a governance token of Wombat protocol. The main function of WOM is governance (not activated yet) and staking in veWOM contract for boosting yields for liquidity providers The closest reference to cryptoeconomic design of WOM is the Curve's CRV token.
  • wmxWOM is a liquid derivative of the veWOM tokens owned by Wombex protocol. When user locks 1 WOM i1 wmxWOM per 1 locked WOM in Wombex.Finance. wmxWOM can be traded in the outer market. Stake it to receive a share of 5% of Wombex liquidity providers’ WOM rewards and all rewards for veWOM holders by Wombat.
  • WMX is a governance token of Wombex.Finance. The utility of WMX comes down to Wombex+ Wombat governance and protocol fees distribution. To unlock utility of WMX it should be vote-locked.
The new WMX supply enters the market via various events (Bootstrap event, liquidity mining, airdrop, etc). However, the most interesting part accounting for 50% of WMX supply is WOM Wars reward allocation or WMX pro-rata emission:
Fig.1 - WMX minting per WOM earned
LPs deposit liquidity into Wombex. This liquidity in the form of Wombat LP tokens is staked in the Wombex MasterWombat contract and earns WOM rewards based on the size of the Wombex veWOM position. When every 1 WOM is mined, some amount of WMX is issued. The formula above determines how many WMX will be issued when 1 WOM is mined.
  • vlWMX represents the vote-locked WMX. It's non-transferable tokens. Through vlWMX, the user receives a share of the protocol fees and the right to participate in Wombat and Wombex governance (which can be monetized by selling voting power for bribes).