Our Side Pool is going live soon! As much as we love innovative stablecoins, their risk levels differ from time-tested #stablecoins in the Main Pool. ⚠️
How does Wombat manage these risks and keep users safe? 🧵
How does Wombat manage these risks and keep users safe? 🧵
2/ The Side Pool is a separate pool which contains innovative and often volatile stablecoins. By categorizing them in pools, risk can be isolated and thus, not affect the Main Pool. ⛑
These riskier tokens will be in the Side Pool with $BUSD as the routing token.
These riskier tokens will be in the Side Pool with $BUSD as the routing token.
3/ The routing asset (BUSD) allows you to swap tokens in the Side Pool to the Main Pool and vice versa. 🔣
For example, you can swap $HAY to $USDT despite them being in different pools! 🤯
For example, you can swap $HAY to $USDT despite them being in different pools! 🤯
4/ To users, it’s a one-click process. On the backend, $HAY gets swapped to $BUSD, then $BUSD to $USDT.
👉Which is why fees incurred (i.e., gas, slippage, price impact) are higher for inter-pool swaps.
👉Which is why fees incurred (i.e., gas, slippage, price impact) are higher for inter-pool swaps.
5/ In terms of pool design, nothing's changed!
It's still single-sided, meaning, you only need ONE type of token to be a liquidity provider.
Each asset will have its own coverage ratio, and veWOM boosting is applicable to this pool as well! 💰
It's still single-sided, meaning, you only need ONE type of token to be a liquidity provider.
Each asset will have its own coverage ratio, and veWOM boosting is applicable to this pool as well! 💰
6/ The critical innovation in our new Side Pool design is to protect the pool from being filled by a single token — in case a token gets depegged or hacked.
In either case, we want to limit any damage to the pool, without dragging down LPs of other tokens within Wombat.
In either case, we want to limit any damage to the pool, without dragging down LPs of other tokens within Wombat.
7/ As an added security layer, we’ll set a stricter requirement on coverage ratios & supply limit on these volatile tokens.
8/ When the coverage ratio of the from-token (of the volatile asset) exceeds a certain rate, a coverage ratio fee will be charged on top of the haircut to discourage further swapping. ⚠️
9/ When the coverage ratio reaches the maximum limit that we’ve set, a 100% fee is charged, meaning no further swap is possible. 🈲
10/ All these brings you a greater variety of stablecoins while mitigating risks. Its smart contract has been audited by @peckshield and all vulnerabilities raised has been fixed 🔐
📄 Read the audit report here: github.com/peckshield/pub…
📄 Read the audit report here: github.com/peckshield/pub…
11/ Our Side Pool is a masterpiece that allowed us to bring in more innovative stablecoins to Wombat!
See you in the pool launch and stick around for more updates 🐻🚀
#StableswapV2 #BNB #DeFi $WOM
See you in the pool launch and stick around for more updates 🐻🚀
#StableswapV2 #BNB #DeFi $WOM
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