Wombat on Arbitrum: Earn Up to 37.6% APR with frxETH

Wombat on Arbitrum

Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned. 

Originally launched on BSC, Wombat Exchange is a self-described “scalable, low slippage, and single-sided staking stableswap” which looks like a combination of Platypus Finance on Avalanche and the original stableswap AMM kingmaker, Curve Finance. Since launching in April 2022, Wombat has built up a combined $105.57M TVL (including staked WOM) across BSC and Arbitrum with a $183M FDV for its native token WOM.

Wombat Exchange

On Wombat, DeFi users can swap stablecoins with minimal slippage and alternatively earn yields on their assets via single-staking pools with stablecoins like USDC or even newer pegged assets like frxETH by Frax. 

In my opinion, Wombat brings no net new innovation to DeFi but it does provide a number of benefits to BSC users and now Arbitrum users having recently launched on Arbitrum on April 5th.

  • Slippage minimization: Wombat adopts the asset-to-liability model; slippage is negated until higher transaction amounts and reduced when it occurs.
  • User-friendly UI/UX: Simple, accessible UI including single token deposits
  • Composability: Single-token LP tokens are ideal for borrowing and lending protocols and trading platforms to build on top of.
  • Minimal Impermanent Loss: Like Curve and Platypus, Wombat offers near zero IL thanks to its design and the nature of pegged assets trading on it.
  • Boosted Rewards: Earn higher yields in WOM from Boosted Pools by locking WOM tokens between 7 days to 4 years
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