SECTION 1: APPLICANT INFORMATION
Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.
Applicant Name: Wombat Exchange
Project Name: Wombat Exchange
Project Description: The hyper-capital-efficient multi-chain swap for stablecoins and LSDs.
Team Members and Qualifications:
Founder: Alex Lee, Quant Trader and Blockchain Engineer with extensive experience in crypto, project management, and portfolio management.
The team at Wombat Exchange has successfully launched on BNB Chain, ETH and Arbitrum with solid track records on our execution ability. We have also built long-term relationships with our partners, including top DeFi like Frax, Lido, Helio, Stader, Binance, ANKR, coin98, Axelar, Pyth, and Wormhole, and ecosystem partners building on Wombat like Wombex, Magpie, and Quoll, demonstrating our ability to collaborate and form an alliance in this fast-moving DeFi racetrack. Our original hyper-efficient algorithm and design are consistently picked up by top aggregators such as 1inch, OpenOcean, and Odos, and our algorithm’s performance during volatile markets, such as USDC de-peg, demonstrates our ability to innovate and consistently improve.
Project Links:
- Website: app.wombat.exchange
- Twitter: WombatExchange
- Discord: discord.gg/Wombat
- Telegram: WombatExchange
- Docs: docs.wombat.exchange/
Contact Information:
TG: @definidude
Twitter: WombatExchange
Email: alex@wombat.exchange
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement? Yes
SECTION 2: GRANT INFORMATION
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Requested Grant Size: Siren Grants - 750,000 ARB
Grant Matching:
Wombat will be providing our usual incentives for ARB partnership pools and on ARB cross-chain pools (to facilitate cross-chain features to ARB), the grant is NOT used towards usual running of Wombat. This grant will be used to provide additional incentive towards Wombat Arbitrum Expansion Plan with the goal to increase liquidity, capital efficiency and in turn, trading volume, on Wombat ARB (including Wombat ARB Cross-Chain from other chains into ARB via our capital efficient cross-chain ARB swap/pool) to further drive growth to Wombat ARB including in the ARB cross-chain ecosystem. The grant will also be used towards Wombat Arbitrum Expansion Plan liquidity rush/boosting programs with our ARB partners (existing and new) to push the liquidity to a new height, and in turn, growth of adoption of innovative DeFi features on ARB (such as working with lending borrowing protocols, yield aggregators, and so on on top of Wombat LPs). This grant is NOT used towards the regular running of Wombat ARB or any other chain/network activities.
Wombat has also been paying and will continue to pay for all the regular business and marketing of Wombat on ARB during Wombat Arbitrum Expansion Plan, including our Wombat Arbitrum partnership pools’ emissions.
Grant Breakdown:
All of the grants will be used towards Wombat Arbitrum Expansion Plan which includes incentivizing liquidity provision on Wombat ARB and Wombat ARB cross-chain and, in turn, driving new growth of capital efficiency, trading volume and incentivizing other DeFi protocols to open pools and build upon Wombat ARB. This includes Wombat Arbitrum Cross-Chain Expansion Plan to further grow our ARB cross-chain pools to increase the efficiency of tokens seamlessly bridging and swapping into Arbitrum via Wombat cross-chain pools in the hyper-capital efficient manner.
750K is the requested amount;
the allocation of fund would be approximately as follows:
~ 50% going towards our ARB crosschain pools (existing and new) - mainly stables at the moments
~ 50% going towards our partnership ARB pools (existing and new) - consisting of stables & LSDs
All of the grants will be used by incentivizing liquidity providers of Wombat ARB pools going back to ARB liquidity providers.
Funding Address: 0xC37a89CdB064aC2921Fcc8B3538aC0d6a3AaDF48 (Wombat Exchange multi-sig)
Funding Address Characteristics: Gnosis SAFE Multisig 4/7
Contract Address:
Will be deployed into multiple reward pools; all ARB contracts can be found here (will be constantly updated when there is new pools): Arbitrum - Wombat Exchange
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.
Objectives:
Wombat Arbitrum Expansion Plan :
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Further Increase Arbitrum DeFi TVL - Through additional support from this grant into our Wombat Arbitrum Expansion Plan, Wombat will bring in additional liquidity from the other chains that we support (directly or through our ecosystem projects and partners) such as from BNB Chain and Ethereum, and in turn, further increasing Arbitrum DeFi TVL, especially with our cross-chain ARB pool, seamlessly bridging other chains’ token into ARB in the hyper-capital-efficient manner.
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Further Increase Arbitrum DeFi users - Through additional support from this grant into our Wombat Arbitrum Expansion Plan, Wombat will bring in more users, ecosystem projects, and partners from BNB Chain, Ethereum to ARB, increasing ARB DeFi users, especially with our cross-chain ARB pool.
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Further Improve Capital Efficiency for ARB Stablecoins and LSDs Holders - Through additional support from this grant into our Wombat Arbitrum Expansion Plan, Wombat will continue to improve and upgrade our proprietary and innovative full-range concentrated liquidity algorithm, which is not only cross-chain now and also hyper-efficient (being consistently picked up by aggregators as one of the best choices in terms of slippage, price, speed, and gas for even sizable transactions and especially during time of volatility) maintaining, improving, and further growing simple hyper-capital-efficiency on ARB. We are consistently ranked very competitively in terms of trading volume even with much less TVL compared to our competitors. We aim for capital efficiency! Example:
Source: Wombat Exchange Twitter sharing Defillama rankings
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Simplifies Concentrated Cross-Chain Liquidity for ARB Liquidity Providers - Through additional support from this grant into our Wombat Arbitrum Expansion Plan, we will further grow adoption of our innovative single token staking design which simplifies the liquidity provision process for Wombat ARB liquidity providers. It minimizes the impermanent loss effect for LPs, which is also implemented on our cross-chain ARB pools. This also simplifies the process for other DeFi protocols to build upon Wombat ARB.
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Simplifies cross-chain swapping for ARB DeFi users - Through additional support from this grant into our Wombat Arbitrum Expansion Plan, we will further grow adoption of our innovative cross-chain swapping ARB pool allows one-step cross-chain swapping of different pegged assets, simplifying the cross-chain swapping experience for ARB DeFi users and other chains’ users wanting to swap into ARB.
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Through additional support from this grant into our Wombat Arbitrum Expansion Plan, we will grow the interoperability with other DeFi protocols on ARB, improving the efficiency of the ARB DeFi ecosystem as a whole.
Key Performance Indicators (KPIs):
Wombat will begin distributing the incentives as soon as the tokens are received in the multisig. This will commence the first epoch (one-week period), with the mentioned goals, objectives and relevant data which will be shared on an ongoing basis in-line with the timing of the following epoch token distributions to Wombat.
The distribution of incentives will be executed as per the allocation breakdown document on an epoch basis, and will continue for the 3 month period of the framework (At the latest up until January 31st 2024).
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
Stablecoins are essential for the growth of the ARB DeFi ecosystem, and LSDs are gaining more traction every day, being one of the few products with actual and stable yield in DeFi. These pegged assets form the top projects of DeFi and remain part of the backbone of DeFi. Wombat’s proprietary and innovative hyper-capital-efficient algorithm maximizes liquidity for these pegged assets in the ARB ecosystem. It is especially beneficial for the many new DeFi stablecoin and LSD projects to kick-start their liquidity flywheel and growth. For ARB DeFi consumers, Wombat ARB offers swaps with competitive (if not the best) price, slippage, gas, and speed (relevant to TVL) for them to get more every time they swap between these pegged assets, increasing the whole ARB DeFi ecosystem’s capital efficiency. Our track record of doing more trading volume than our competitors with higher TVL proves this, which is an essential feature for the future of AMM, being about capital efficiency. Our innovative single-token-staking process simplifies the onboarding process for liquidity providers, especially new liquidity providers, without having to deal with staking in pairs, helping to onboard new liquidity providers to the ARB DeFi ecosystem.
With this grant supporting our Wombat Arbitrum Expansion Plan , we can further grow our stableswap on ARB by increasing our liquidity, capital efficiency, trading volume and collaboration with other DeFi protocols. For example, RedStone Oracle is integrating with Wombat ARB. The ARB price feed is expected to go live soon, facilitating the utility of Wombat-LP towards protocols such as lending and borrowing as collaterals. On top of growth of liquidity and capital efficiency on ARB, we will use the grant to further incentivize innovative collaboration/building of new features with other DeFi projects, with the incentives ultimately going to ARB users.
In addition, and most importantly, Wombat Arbitrum Expansion Plan with the support of this grant, with further grow liquidity of our ARB cross-chain pools, Wombat will bring in more users and volume through our community, ecosystem projects, and partners from BNB Chain, ETH, primarily through our cross-chain ARB pool, increasing users and TVL of ARB DeFi ecosystem as a whole.
Justification for the size of the grant:
The stability and utilities of stablecoins and LSDs render these pegged assets part of the backbone of DeFi for all blockchains, including ARB. Wombat is a hyper-capital-efficient multi-chain swap for stablecoins and LSDs. Our proprietary and innovative full-range concentrated liquidity algorithm and single-asset-staking design offer unmarked capital efficiency, speed, and simplicity for swapping and staking stablecoins and LSDs. We wish to bring these products, with proven track records on BNB Chain, Arbitrum, and Ethereum, to the next level on ARB, through the support of this grant into our Wombat Arbitrum Expansion Plan.
Our new ARB cross-chain pool (powered and supported by Wormhole) has been released and proven to have one of the most seamless cross-chain + swap experiences, as it is easy to use and, most importantly, fast. We are excited to further grow the liquidity and adoption of these pools to bring in more users, ecosystem projects, and communities from other chains Wombat supports and connect them with the Arbitrum ecosystem.
This grant will help us with our Wombat Arbitrum Expansion Plan to onboard more users, communities, and ecosystem projects from multiple chains to Wombat ARB, as well as maximize the liquidity, volume and adoption of our hyper-capital-efficient swap, which Wombat brought and will continue to upgrade to and on ARB for ARB users, ecosystem and community. The goal is for Wombat ARB to further grow and increase sticky ARB DeFi TVL, increase ARB DeFi user numbers, improve capital efficiency for ARB stablecoin and LSD holders, simplify liquidity provision for ARB liquidity providers as well as simplify the cross-chain onboarding process for users from other chains wanting to try ARB. More importantly, we want to bring with us our ecosystem partners from other chains, as well as add value to other ARB DeFi ecosystem projects as a hyper-capital-efficient swap and a stable yield-bearing protocol that is easy to integrate with minimal effort.
The grant will go towards user acquisition incentives, more specifically liquidity provider incentives, for our Wombat Arbitrum Expansion Plan as well as for every Arbitrum product we create subsequently, either by Wombat or together with our ecosystem partners who will also be coming to ARB with us from BNB Chain, and Ethereum (such as Wombex, Magpie and Quoll). We have finished the integrations with aggregators such as 1inch, Odos, and Openocean to Wombat ARB on this front. We are actively working with other aggregation partners.
In addition, this Arbitrum grant will also further encourage third-party integrations onto Wombat on Arbitrum, either with native Arbitrum projects or with our existing partners and friends from BNB Chain and Ethereum coming to ARB. We are already actively working with other DeFi legos, such as our recent partnership with RedStone Oracle, further increasing actual utilities of Wombat-LPs.
Wombat Wombat Arbitrum Expansion Plan & ARB pool liquidity rush/boosting program launch plan:
- Launch of Wombat’s cross-chain pool rush/boosting program on Arbitrum, with a marketing campaign (with incentives to try liquidity provisions, swaps, and social engagements funded by Wombat) with liquidity provision incentives (funded with the grant).
- We inform the Wombat community and program users through Discord, Telegram, and Twitter.
- The launch of Wombat’s cross-chain pool rush/boosting program will work also to cover the next level growth of our smart router for our cross-chain pools with Wombat’s existing partners, such as Stader and Frax, and our ecosystem projects, such as Wombex, Magpie, and Quoll, with an entire launch marketing campaign (funded by Wombat or ecosystem projects) with liquidity provision incentives (LP incentives funded by the grant). Marketing campaigns will be conducted on all of Wombat’s socials, such as Twitter, Discord, Telegram, and most Arbitrum community channels. Medium articles and PR articles covering the launch will also be published amplifying the launch, such as social content/amplification competitions.
- The launch of Wombat’s cross-chain pool rush/boosting program will also support and cover the next level growth of Wombat cross-chain ARB pools with an entire marketing campaign (funded by Wombat) and additional liquidity incentives (funded by the grant).
- Wombat will also engage marketing platforms to further educate users (from new chains that we will support) into trying to provide liquidity and perform swaps on Wombat and cross-platforms from other chains into Wombat ARB, to educate new users to try Wombat ARB (funded by Wombat).
The Wombat’s cross-chain pool rush/boosting program will incentivize ARB and Wombat community members from the BNB Chain and ETH to try out Wombat ARB cross-chain to further drive traction of Wombat ARB.
The 750K ARB would allow Wombat Arbitrum Expansion Plan to provide additional incentive (on top of Wombat’s usual protocol incentives) to attract stablecoin and LSD token holders to use Wombat ARB cross-chain (especially from other chains via our innovative cross-chain ARB swap) to further grow and further build up reputation of Wombat ARB in the DeFi ecosystem during the launch of the Wombat Arbitrum Expansion Plan, which is essential to further scale Wombat ARB and further grow Wombat ARB cross-chain and stabilize ARB cross-chain pool’ growth. The amount is calculated using the initial budget of our previous successful launches on BNB Chain.
Execution Strategy: [Describe the plan for executing, including resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]
Wombat’s cross-chain pool rush/boosting program launch plan:
- Launch of Wombat’s cross-chain pool rush/boosting program on Arbitrum, with a marketing campaign (with incentives to try liquidity provisions, swaps, and social engagements funded by Wombat) with liquidity provision incentives (funded with the grant).
- We inform the Wombat community and program users through Discord, Telegram, and Twitter.
- The launch of Wombat’s cross-chain pool rush/boosting program will work also to cover the next level growth of our smart router for our cross-chain pools with Wombat’s existing partners, such as Stader and Frax, and our ecosystem projects, such as Wombex, Magpie, and Quoll, with an entire launch marketing campaign (funded by Wombat or ecosystem projects) with liquidity provision incentives (LP incentives funded by the grant). Marketing campaigns will be conducted on all of Wombat’s socials, such as Twitter, Discord, Telegram, and most Arbitrum community channels. Medium articles and PR articles covering the launch will also be published amplifying the launch, such as social content/amplification competitions.
- The launch of Wombat’s cross-chain pool rush/boosting program will cover the next level growth of Wombat cross-chain ARB pools with an entire marketing campaign (funded by Wombat) and additional liquidity incentives (funded by the grant).
- Wombat will also engage marketing platforms to further educate users into trying to provide liquidity and perform swaps on Wombat and cross-platforms from other chains into Wombat ARB, to educate new users to try Wombat ARB (funded by Wombat).
Wombat takes out the complexity in hyper-capital-efficient concentrated liquidity provision and cross-chain, two of them together. We are targeting any DeFi users, including new users, to participate in this natural and sustainable yield journey. We provide focused liquidity in full range; hence, users would not have to worry about setting fields and actively managing their liquidity. The single-asset staking design also removes the complexity of staking in pairs, removing impermanent loss and the complexity of converting half of the staking token to make a pair before depositing.
Wombat Arbitrum Expansion Plan is targeting any existing ARB Mainnet users (who have not yet tried Wombat ARB) holding any amount of stablecoins or LSDs wanting to deposit and earn in a straightforward step. Wombat Arbitrum Expansion Plan is also targeting stablecoins and LSDs holders from other chains that Wombat supports (and will support) to swap their stablecoins or LSDs to stables or LSDs on ARB Mainnet with a straightforward step without worrying about bridging and wrapping assets. Hence, we target all stablecoins and LSD holders on Arbitrum, BNB Chain (coming to ARB), and Ethereum (coming to ARB).
We are already discussing with all the existing Wombat ecosystem partners, including most of the top stablecoins and LSDs (already on ARB and the ones planning to come to ARB) regarding our Wombat’s cross-chain pool rush/boosting program. We will also target the users of yield boosting, lending, and leverage protocols that leverage upon Wombat LPs by establishing partnerships with them to expand the reach of Wombat to their ecosystem members.
ARB Grant Distribution Plan
[see Grant Timeline below]
Grant Timeline: [Describe the timeline for the grant]
Wombat will begin distributing the incentives as soon as the tokens are received in the multisig. This will commence the first epoch (one-week period), with goals and objectives and relevant metrics to be shared on an ongoing basis in-line with the timing of the following epoch token distributions to Wombat.
The distribution of incentives will be executed as per the allocation breakdown document on an epoch basis, and will continue for the 3 month period of the framework (At the latest up until January 31st 2024).
If this proposal is greater than 1M ARB, please provide details on any funding tranches or milestones your application aims to abide by:
Funding Tranches: N/A
Milestone Descriptions: N/A
SECTION 4: PROTOCOL DETAILS
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Is the Protocol Native to Arbitrum?:
No, however, we are a cross-chain protocol, which made Arbitrum our second deployment.
On what other networks is the protocol deployed?:
BNB Chain, Ethereum Mainnet
What date did you deploy on Arbitrum?:
April 5, 2023
Protocol Performance:
Wombat is one of the top ~10 protocols by transaction volume on arbitrum consistently, with a cumulative transaction volume of 315M just on Arbitrum since our launch. This is notably done with a lower TVL than competitors (demonstrating our capital efficiency and assistance we are able to offer to other DeFi projects on ARB, especially new projects, much less TVL needed for their liquidity needs), signifying our algorithm and design’s capital efficiency.
Protocol Roadmap:
Wombat is preparing for cross-chain expansion and will exist on 10+ chains in the coming 6 months targeting to bring volume from all these chains to ARB. We will have an algorithm upgrade in progress that will expand the capabilities of the Wombat AMM. We have an upgraded bribe contract which will simplify and expand the use-case for our partner projects. Furthermore, we are working with many borrowing and lending aggregators, yield boosters, LSDs, for more synergistic partnerships that will grow DeFi even more on Arbitrum
Expand Liquidity:
Our Wombat Arbitrum Expansion Plan focus will be on further growing our ARB cross-chain pools’ liquidity to bring in other chains’ users into ARB this way, further strengthening our presence in the ARB cross-chain ecosystem. Further, we will work with our existing partners on ARB in boosting their pools’ TVL and trading volume and continue adding new pools with other new partners on ARB onto Wombat ARB especially with our new cross-chain features combined into the same pool as swap. Further, we will further grow our stableswap liquidity on ARB by collaborating with other innovative DeFi protocols, ultimately growthing utility and efficiency of these liquidity. For example, RedStone Oracle is integrating with Wombat. The ARB price feed is expected to go live soon (if not already live), facilitating the utility of Wombat-LP towards protocols such as lending and borrowing as collaterals. We will use the grant to continue to further incentivize innovative collaboration/building of new features with other DeFi projects, with the incentives ultimately going to ARB users to increase the overall liquidity with our mega-capital efficient algorithm on ARB.
Audit History:
Hacken, Zokyo (x2), Peckshield (x4), Slowmist
SECTION 5: Data and Reporting
Provide details on how your team is equipped to provide data and reporting on grant distribution.
Is your team prepared to create Dune Dashboards according to program requirements for your incentive program?:
Yes, but we can provide other information as well.
If not, how does your team plan to report grant data?:
N/A; will create a dune dashboard.
