MIP #7 - Launch mWOM Stability Vault on BNB Chain & allocate 80% of mWOM revenue share to it.

Launch mWOM Stability Vault on BNB Chain & allocate 80% of mWOM revenue share to it.

Abstract

WOM, the governance token for Wombat Exchange, has a Magpie variant known as mWOM, which allows holders to earn additional WOM rewards on the Magpie platform by leveraging their assets. At present, BNB Chain users can exchange mWOM for WOM at the market rate, but the current peg of mWOM does not accurately reflect the price of WOM. Maintaining a stable price relationship between WOM and mWOM is essential to provide users with the flexibility to transition between the two tokens seamlessly. To address this issue, the proposal recommends deploying the mWOM Stability Vault on the BNB Chain and allocating 80% of the existing mWOM rewards to the vault.

Motivation

This proposal addresses a significant concern regarding the mWOM token, as current holders face suboptimal conversion rates when swapping their tokens back to WOM. The deployment of the mWOM Stability Vault on the BNB Chain aims to bolster the long-term value appreciation of mWOM. Users can opt to lock their mWOM in the mWOM Stability Vault (mWOMSV) to earn a higher percentage of WOM rewards from Magpie, potentially leading to an increase in long-term holders supporting the price of mWOM. Additionally, new users have the option to acquire mWOM via Wombat Exchange, allowing them to capitalize on the advantages offered by the mWOM Stability Vault. As the platform evolves, mWOMSV holders can anticipate further benefits from their participation.

Specification

• Deploy the mWOM Stability Vault on BNB Chain
• Allocate 80% of the mWOM revenue share into it