For Liquidity providers

Liquidity Providers use Wombex to earn more yield than directly on Wombat

Wombex for LPs

Wombex uses accumulated (protocol-owned) veWOM to boost yield to all funds supplied to the protocol and split WOM rewards between all LPs.

Liquidity providers depositing liquidity through Wombex receive greater yield than in the case of direct liquidity provision to Wombat. The additional yield comes from boosting WOM rewards using Wombex veWOM holdings and the WMX granted pro-rata for every WOM mined by Wombex LPs.

Liquidity providers receive WOM rewards (minus protocol fees) and WMX issued pro-rata for each mined WOM. Combined together, it can provide a much bigger yield than currently LPs can earn on Wombat.

Thus, Wombex supercharges yield for Wombat LPs. To provide liquidity through Wombat, Liquidity providers stake Wombat LP tokens into Wombex.