1. What is Wombat?

Wombat is a stablecoin exchange protocol based on the BNB Chain, aimed at enhancing capital efficiency by eliminating the island effect of stablecoin liquidity pools, and addressing scalability challenges by introducing coverage. Here are the main features of Wombat:

1. Open Liquidity Pool: Wombat aggregates all liquidity into a shared pool, increasing the depth of the liquidity pool, thereby providing higher capital efficiency and reducing slippage.

2. Innovative Algorithm: Wombat employs an amplification factor to minimise variations in token liquidity levels, achieving more accurate stablecoin exchanges, and reduces slippage losses by introducing coverage.

3. Single Token Staking: Wombat allows staking with a single token, promoting liquidity growth and streamlining operations.

4. User-Friendly UI Design: Wombat assists users in swapping and staking stablecoins across various blockchains and earning interest through an intuitive UI.

5. Security Measures: Wombat adopts ECR to manage pool balance, with a mechanism for deposit yield/withdrawal fees to encourage users to safeguard the liquidity pool. For riskier tokens, Wombat creates sub-pools to segregate risk.

6. Token Economics: The native token of Wombat is WOM, and users can lock WOM tokens to mint veWOM for 7 days to 4 years, which is used for governance participation and earning rewards.

In summary, Wombat aims to provide users with higher capital efficiency and lower slippage through its innovative design and algorithms, making it a rising star in the stablecoin exchange space.

2. Who Founded Wombat?

According to the provided information, the founder of Wombat Exchange is Alex Lee, a quantitative trader and blockchain engineer with extensive experience in cryptocurrency, project management, and portfolio management.

It is important to note that another project named Wombat is launched by Spielworks, primarily focusing on the blockchain gaming sector, but this is different from Wombat Exchange.

3. Which Ventures Invested in Wombat?

According to the provided information, the main investors in Wombat Exchange include:

• Shima Capital
• Jump Crypto
• Wormhole

These investors collectively invested a total of $5.2 million in Wombat Exchange during its two funding rounds.

4. How Does Wombat Work?

Wombat Exchange is a stablecoin exchange protocol based on BNB Chain, designed to provide users with an efficient and convenient stablecoin exchange experience. Its operational principles are primarily reflected in the following aspects:

1. Shared Liquidity Pool: Wombat has designed a shared liquidity pool, aggregating all liquidity into one shared pool, enhancing the depth of the liquidity pool and reducing slippage.

2. Coverage Mechanism: Wombat introduces the coverage (ECR) mechanism to monitor the protocol's operations and manage risks. In extreme cases, the system will terminate the operations of affected pools to protect user assets.

3. Algorithm Innovation: Wombat improves the efficiency and security of stablecoin exchanges by integrating coverage into CSMM and invariant algorithms.

4. User-Friendly UI Design: Wombat provides an intuitive UI that helps users swap and stake stablecoins across various blockchains and earn interest.

5. Liquidity Rewards: Users can earn WOM tokens as rewards by providing liquidity to the pools.

6. Yield Acceleration: Users can lock WOM tokens to receive veWOM, enhancing rewards for staking stablecoins.

In conclusion, Wombat Exchange offers an efficient and secure stablecoin exchange experience through shared liquidity pools, a coverage mechanism, algorithm innovation, and user-friendly UI design.