SECTION 1: APPLICANT INFORMATION
Applicant Name:
WMX - Wombex Finance
Project Name:
Wombex Finance
Project Description:
Wombex is the leading yield aggregator built on top of Wombat.exchange - a hyper-efficient StableSwap DEX built on a novel gas-efficient AMM algorithm. Wombex creates a sustainable and profitable ecosystem by boosting yields for LPs and aggregating governance power on Wombat.
Wombex accumulates veWOM (vote-escrowed WOM) and aggregates LPs deposits, combining the power of liquidity providers and WOM token holders, supercharging each other and accelerating long-term Wombat growth.
Team Members and Qualifications:
- Samy K: the member of genesis BNB Chain team that developed BNB chain from zero to one (strategy, marketing, projects, fundraising)
- Dao Hacker: a proficient solidity dev with 6 years of experience in solidity and contribution to various Defi projects
- Crystall Ball: head of research with experience of building and prototyping Defi products built on top of AMMs
- You.Know: the marketing lead that worked with notable project and created the biggest AMA in the BNB ecosystem while running Wombex
Project Links:
- Website: https://wombex.finance
- Twitter: https://twitter.com/WombexFinance
- Discord: WombexFinance
- Telegram: Telegram: Contact @wombex
- Medium: Wombex - Medium
- CMC Community: Join The Crypto Message Board At Community Today
- Docs: https://docs.wombex.finance
Contact Information:
TG:
Samy @cryp7omaxi
Twitter:
https://twitter.com/WombexFinance
Email:
tc@wombex.finance
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:
Yes
SECTION 2: GRANT INFORMATION
Requested Grant Size:
200,000 ARB tokens
Grant Breakdown:
200,000 ARB tokens will be distributed as liquidity incentives to attract more TVL and users to Womex on Arbitrum.
The breakdown of incentivizing activities:
| Action | Total ARB | Allocation % |
|---|---|---|
| Wombex Arbitrum Bootstrap event incentives | 20,000 | 10% |
| Wombex Arbitrum main pool liquidity incentives | 50,000 | 25% |
| Wombex Arbitrum cross-chain pool liquidity incentives | 50,000 | 25% |
| Wombex rewards for pools allocated by vlWMX governance, and wmxWOM (Wombex’s WOM LST) rewards aimed on deep secondary market liquidity for wmxWOM | 30,000 | 15% |
| Wombex partnership pools liquidity incentives, including cross-chain partnership pools | 50,000 | 25% |
For the Bootstrap events, ARB token rewards will be distributed over 7-14 days for each, depending on the event details; for other initiatives (mainly rewards for pools) during approximately 6 months. We prefer to use the grant gradually after the protocol bootstrap.
Funding Address:
0x7429A2e8dC807c9e13Bb65edb335D6E01051aE64
Funding Address Characteristics:
4/6 Multisig
Contract Address:
Funds will be distributed by the rewarder addresses in Wombex. The list of contracts deployed on Arbitrum: Deployed addresses (Arbitrum One) - Wombex.finance
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Objectives:
Our goals for this grant include increasing the number of daily Arbitrum users, its TVL, user retention, capital efficiency, and overall ecosystem Defi metrics. Our main aim is to attract liquidity to the Wombat ecosystem on Arbitrum by offering simplified access, increased returns, and voting/bribes on top of the hyper-capital-efficient concentrated liquidity provided by Wombat. Being built on top of Wombat, Wombex enhances any kind of user acquisition strategy carried out by Wombat.
Key Performance Indicators (KPIs):
The following key performance indicators will be used to measure the success of this grant:
- Total Value Locked - the total amount of stablecoins, LSTs, and other pegged assets (is USD equivalent) deposited into Wombat via Wombex on Arbitrum
- Number of Liquidity Providers - the number of users who provide liquidity to Wombat pools via Wombex on Arbitrum
- Daily Unique Users - the amount of unique addresses that interact with Wombex contracts on Arbitrum each day
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
We expect that this grant will lead to an increase in the number of users interacting with Wombex on Arbitrum based on the following factors:
Novel application as a source of yield for LPs
Liquidity providers in the ecosystem (here we refer to EVM compliant multi-chain ecosystems including L1s and scaling solutions) are yield seekers. The ability to provide a full range of concentrated liquidity without manual intervention is a universal product targeting a wide audience of DeFi users and LPs (this statement refers to Wombat). Taking into account Wombex yield aggregation, it creates a perfect synergy, providing advanced enhanced returns to LPs and making liquidity provision to the novel AMM (Wombat) using Wombex even more attractive. The key features are competitive returns with relatively low IL risks, simplicity of liquidity provision and position management (LP doesn’t need to manage it at all), and additional revenue sources such as the possibility to participate in bribes.
Real use cases
Wombex creates an efficient yield layer on top of Wombat that offers use cases focused on stablecoins and LSTs. As these types of assets hold the highest volume and TVL projects in DeFi today, providing liquidity that generates yield is one of the most natural use cases for end users. Coupled with Wombat’s capital efficient algorithm that provides attractive terms for both users (low slippage) and LPs (high returns) on swaps with lower liquidity than competitors, it makes a perfect synergy to accelerate real use cases of Wombat with Wombex. In addition to these simple and efficient real use cases, there are more potential unlocks in developing new applications on top of Wombex, using it as a building block of the yield infrastructure.
By being a part of the Arbitrum Incentive Program, Wombex will be able to attract even more users into the Wombex/Wombat/and Arbitrum ecosystems, enriching them, and making fund-management on Arbitrum even more attractive for users, DAOs, and protocols.
Wombex adds value to the following groups of users:
-
For liquidity providers.
Wombex offers enhanced rewards for LPs based on several sources of rewards (1) Increased rewards as a result of Wombex’s accumulated veWOM in the Wombat position, providing increased rewards to all Wombex LPs based on Wombat’s boosting algorithm (2) Wombex native tokens (WMX) issued pro-rata on top of the WOM generated by Wombex LPs (3) Any other additional tokens provided by Wombat or its partner projects as rewards (4) Arbitrum grant rewards. -
For traders (swap users)
Wombex doesn’t provide swap services directly to traders. However, Wombex contributes significantly to the liquidity of the Wombat markets as a significant portion of TVL is deposited through Wombex. Thus, Wombex contributes to better swap conditions for traders. -
For stablecoin/LST protocols and products
Wombex provides additional incentives and yield for depositing liquidity to Wombat, contributing to the secondary market -
For other yield-generation platforms
Wombex provides an opportunity to integrate yield trading solutions on top of it such as Pendle or similar.
Justification for the size of the grant:
Such an innovative product as Wombat (a DEX built on top of a brand new AMM algorithm with veTokenomics aimed at user loyalty and retention) needs a solid symbiotic project that will provide enhanced returns, veToken aggregation, and bribery services.
Wombex (the closest references are Convex for Curve and Aura.finance for Balancer) is an essential protocol for Wombat that is built on top of it and focuses on supporting its growth, user/TVL acquisition, veWOM token accumulation, and acts as a blackhole for WOM.
Wombex has been building yield aggregation services on top of Wombat, accelerating its adoption, user acquisition, and retention by means of boosting Wombat yields and engaging governance participation via bribes aggregation and distribution on the BNB chain, Arbitrum, and lately Ethereum. Wombex’s track record includes acquiring 100m+ TVL at ATH and being ranked #1 aggregator in Wombat by all metrics such as TVL, veWOM accumulated, user base, and community.
Operating in the Arbitrum ecosystem, Wombex aims to promote and boost all Wombat new pools and products, such as ordinary, cross-chain, and any other kind of pools that will be launched in the future.
This grant will help us achieve our further goals on Arbtrum of increasing the number of its users, TVL, user retention, capital efficiency, and overall ecosystem DeFi metrics.
The grant will be used for user acquisition incentives, focusing on liquidity provider incentives that will provide stablecoins, LSTs, and pegged assets to Wombat AMM via Wombex on Arbitrum. These incentives will be aimed at our DAO partners who use Wombex for their DAO treasury strategies to move some capital to Arbitrum and start managing DAO funds on Arbitrum in the Wombex/Wombat ecosystems.
This proposed grant amount is consistent with proposals for similar projects in the Arbitrum ecosystem. The grant will be used to incentivize Arbitrum community members, Wombex community members, and DAO/ecosystem partners from the BNB chain to move funds to Arbitrum, use Wombex, and become long-term users of Wombex, Wombat, and Arbitrum.
The 200k ARB tokens would allow Wombex to provide additional incentives on top of regular Wombex incentives for all types of TVL acquisition activities such as providing liquidity to pools and veWOM acquisition on Arbitrum. In addition, Wombat incentives will be captured by Wombex users through yield aggregation. We expect that such an organic layering of incentives is the best way to attract stablecoin and LST holders and establish deep liquidity in Wombat pools on Arbitrum, providing a solid foundation for yield aggregation, pool bribery, and long-term user engagement in Wombex/Wombat/and Arbitrum. The amount of the grant was calculated using the Eligibility and Evaluation Guidelines in Arbitrum’s Short-Term Incentive Program.
Execution Strategy:
- The Wombex Arbitrum Bootstrap event is the key event for the future success of the protocol in the Arbitrum ecosystem. For this purpose, we plan to allocate 10% of the grant funds for rewards that will be provided along with Wombex native token rewards, which we believe will provide sufficient amounts of WOM deposited into Wombex-owned veWOM by users to allow Wombex to showcase its best yield aggregation capabilities
- Wombat main pool liquidity incentives are targeted at ~4% APR, we plan to use 25% of grant amount to increase it by another 2-3% with the joint funding from Wombex rewards and the grant proceeds, using up to 7-8% in total (claiming Wombat rewards and distributing them to our users).
- Wombex is not only a revenue aggregation platform, but also a vote aggregation and governance platform. Therefore, we plan to use a portion of the subsidy (7.5%) to provide additional incentives to active governance participants to motivate long-term user engagement with the Wombex protocol and Arbitrum in general. One of the most important features of a yield aggregation platform such as Wombex is to engage users in governance and convert LPs into governance participants as well. In addition, the wmxWOM/WOM peg is critical to the sustainability of the protocol and the technical ability of users to interact with the protocol in the long term. Based on our understanding of this point, we plan to use a portion of the grant (7.5%) to provide additional rewards for wmxWOM holders and liquidity providers. This should increase the number of interactions with other pools and the longevity of such interactions, thereby greatly increasing the efficiency of the grant spent on rewards in liquidity pools.
- Wombex plans to use 25% of the grant for providing additional APRs on Wombat partnership pools on Arbitrum, motivating users to move liquidity from BNB Chain, and building strong long-term relationships with the newly onboarded communities, LPs and projects. In addition, we plan to offer some additional rewards to our partners on Arbitrum who will be approved by the Wombex governance to receive such rewards. The plan is to run joint marketing campaigns with such partners/DAOs to bring their community into the Wombex governance as well as provide liquidity to Wombex from the DAO treasury and DAO related individuals, benefiting Wombex, Wombat and Arbitrum with the new TVL at the same time.
- for each category (main pool, cross-chain pools, and partnership pools) the particular value of reward rate variable and share of allocations inside pools on various single-side LP options will be decided by the team or Wombex community
- Tokens will be distributed to liquidity providers and Bootstrap event participants via smart-contracts or airdrops confirmed by Dune dashboards
The following pools will be incentivized using funds from this grant:
| Pool | Token | Contract address |
|---|---|---|
| Main | USDC | 0xf4cf3521f3122ec620617e37095ced6c974ad133 |
| USDT | 0x519cce4f10658aa71d138e67bceb39ba05bd01d5 | |
| DAI | 0xceb079acf18fef334a7c094a8c2ed945df516183 | |
| wmxWOM | wmxWOM | 0x525709063212b972cad7a6ff611278684dfb97c1 |
| WOM | 0xf463ff03f667d35756ff6cc2fff325da2b23f8cf | |
| BOB | BOB | 0xb3c5b31819ea81e3b8b496a578b4b2f0a3febae1 |
| USDC (BOB) | 0x37d84c0a27150e70e2dbe288fbbb18543f28e37a | |
| frxETH | frxETH | 0x7c29cbd5d836d51980d256bb8af4a18b9a2602ac |
| WETH | 0x7d62c611896c2e0d1454b5c135d7bf4ac5eb0ba5 | |
| sfrxETH | 0x3DaBea1853E1536b3Fe20bcD061c6843BE8a9538 | |
| FRAX-MAI-USD+ | FRAX | 0x4bfcfa4b55f8445781f5c1118b115b8e315a5296 |
| USD+ (F-M-U) | 0x431be1507762c72b9a16a26953cdda6d1340f13d | |
| USDC (F-M-U) | 0x12d5dc663d443b0d5207bdf23f95817bd184bb25 | |
| MIM | MIM | 0xcd8a57c71f7a27d34adf85e0dd6689533b3a8adc |
| USDT (MIM) | 0x9e39c7401bf657966ba0b1cb28d7894ca1923f15 | |
| jUSDC | jUSDC | 0x027d3316672f4e0fc6e9de5b05ac27304eb52c00 |
| USDC (jUSDC) | 0xd13CE1E6D08331cc37892B21F29927C379ff7d08 | |
| ankrETH | ankrETH | 0x07f720bf1bf4ad7023049fa39c453a96fe18a3a3 |
| ETH | 0xaf75fed0881aad635a6501f286936c5d70bd7d71 | |
| wstETH | wstETH | 0x9d05191c8385ec0d153c6afc059111b2f9802939 |
| ETH | 0x65cdd33df515c3a8a16d8537bb0d6da4c092f54f | |
| fUSDC | fUSDC | 0x91c5e1123c48f89b6d098303fae0742afcbd0ad4 |
| USDC | 0x66376f6b6e21ad2dbb178141e7e5984a8ed1e4d2 |
*Cross-chain pool addresses will be provided when these pools launch on Wombex.
Grant Timeline:
Execution of the grant incentives will be divided into 4 phases, each lasting 28 days (4 weeks).
The first phase will be directed mainly on the Wombex Arbitrum Bootstrap event to boost Wombex’s veWOM holdings and attract new users into the Wombex ecosystem on Arbitrum.
Starting from the first phase, Wombex will distribute incentivization rewards using the funds from this grant to main and cross-chain pools’ LPs. The rewards will be evenly divided into 4 parts and distributed evenly in the corresponding phases of this grant program.
Distributing incentivization rewards to partnership pools and to pools allocated by vlWMX governance, and wmxWOM will begin in the second phase. We will analyze the incentivization results each 4 weeks and adjust incentivization directed at partnership pools in accordance with the results from the previous period.
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?
Yes
SECTION 4: PROTOCOL DETAILS
Is the Protocol Native to Arbitrum?:
No, Wombex was initially launched on BNB Chain and now is deployed also on Arbitrum and Ethereum.
On what other networks is the protocol deployed?:
Wombex is also deployed on Arbitrum and soon on the Ethereum mainnet.
What date did you deploy on Arbitrum?:
April 2023
Protocol Performance:
[as of 26 September 2023 at ~20:20 UTC]
BNB Chain:
- $6.61M TVL ($103.6M TVL at its peak in November 2022)
- $8.4k TVL/user
- 790 active LPs
- 529 active governance participants
- 16.75M veWOM holdings (32.2% of the total veWOM on BNB Chain)
- 12.3k WMX/vlWMX holders
- $1.67M WMX MarketCap
Arbitrum Chain:
- $1.52M TVL ($45.4M TVL at its peak in May 2023)
- $11.7k TVL/user
- 130 active LPs
- 213 active governance participants
- 4.78M veWOM holdings (31.9% of the total veWOM on Arbitrum)
- 0.9k WMX/vlWMX holders
- $178k WMX MarketCap
References:
https://dune.com/wombex/wombex-pools
https://dune.com/wombex/wombex-users-stats
https://dune.com/wombex/wom-wars
https://dune.com/wombex/wmx-token
Protocol Roadmap:
Wombex is a protocol built on top of Wombat so our strategy is to integrate all pools/bribes/governance processes of Wombat and make a proper marketing and user aquisition for all these activities. Wombat plans to add multiple new pools, including cross-chain ones, as well as bribes, and we plan to follow them.
Audit History:
Wombex is audited Zokyo, Peckshield, and SlowMist: Audits - Wombex.finance
SECTION 5: Data and Reporting
Is your team prepared to create Dune Dashboards for your incentive program?:
Yes, Wombex already created Dune dashboards [1][2][3][4] for monitoring and reporting KPIs to demonstrate the successful implementation of our incentive program. A Dune dashboard tracking the dynamics of the use of grant funds will be created by December 2023.
The following metrics will be tracked:
- Overall TVL deposited in Wombat via Wombex on Arbitrum
- TVL deposited to each pool in Wombat via Wombex on Arbitrum
- Unique addresses that interact with Wombex on Arbitrum daily
- Number of Wombex LPs
- Dynamics of use of funds from this grant
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
We will provide updates to the Arbitrum community of all changes to the Dashboards described above.
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:
Yes, we acknowledge it.