Wombat Exchange
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  • šŸ‘©ā€šŸ«Overview
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  • GETTING STARTED
    • šŸ’°Connect Your Wallet
    • šŸ”Swap
      • Swap Guide
      • Swap Guide For Crosschain Pool
    • šŸ§‘ā€šŸŒ¾Yield Farming
      • Providing Liquidity
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      • Acquire WOM
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  • CONCEPTS
    • āš–ļøCoverage Ratio
    • ā†ŖļøInvariant Curve
    • šŸŒGlobal Equilibrium Coverage Ratio
    • 🤽Dynamic Pool
    • šŸ”€Cross Chain
    • šŸ’µFees
      • Haircut (Swap Fee)
      • Fee Distribution
      • Deposit Gain and Withdrawal Fee
      • Coverage Ratio Fee
    • šŸ¤½ā€ā™€ļøPool Configuration
  • Tokenomics
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      • Where To Buy $WOM?
      • veWOM
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  1. GETTING STARTED

Swap

Utilizing a stableswap 2.0 model, Wombat users can: swap stablecoins at hyper-efficient exchange rates with minimal slippage.

The swap price is defined by the rate of change in cash of asset x per change in cash of asset y. Defined as:

exchangeĀ rate=āˆ‚Axāˆ‚Ay=1+Arx21+Ary2exchange\ rate = \frac{\partial A_x}{\partial A_y} = \frac{1 + \frac{A}{r_x^2}}{1 + \frac{A}{r_y^2}}exchangeĀ rate=āˆ‚Ayā€‹āˆ‚Ax​​=1+ry2​A​1+rx2​A​​

As you may have noticed, the exchange rate is independent of the number of token x and token y in the pool and depends solely on the coverage ratio.

Example

Assume AAA = 0.05, rxr_xrx​ = 80% and ryr_yry​ = 150%. We have

exchangeĀ rate=1+0.050.821+0.051.52ā‰ˆ1.055exchange\ rate = \frac{1 + \frac{0.05}{0.8^2}}{1 + \frac{0.05}{1.5^2}} \approx 1.055exchangeĀ rate=1+1.520.05​1+0.820.05ā€‹ā€‹ā‰ˆ1.055

If we reverse the direction, swap from token y to token x. We have

exchangĀ rate=1+0.051.521+0.050.82ā‰ˆ0.95exchang\ rate = \frac{1 + \frac{0.05}{1.5^2}}{1 + \frac{0.05}{0.8^2}} \approx 0.95exchangĀ rate=1+0.820.05​1+1.520.05ā€‹ā€‹ā‰ˆ0.95

Incentives for convergence of coverage ratio

Wombat incentivizes a swap if the coverage ratio of two tokens is converged and penalizes if it diverges, as shown in the above example. It helps keep the pool in a healthy state and prevents a token from being defaulted. Learn more in below guide:

PreviousConnect Your WalletNextSwap Guide

Last updated 1 year ago

Deposit Gain and Withdrawal Fee
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