MIP #2 - Proposal to Convert vlMGP Holders Rewards from WOM tokens to mWOM

Abstract

Magpie is a yield-boosting platform built on top of Wombat Exchange. The platform is designed to maximize the yield and the voting power of users on Wombat Exchange. By acquiring Magpie’s governance token MGP, users can access cost-effective voting power and earn passive income. By locking their MGP tokens as vlMGP, users can earn rewards. Currently, vlMGP holders receive WOM tokens as part of Magpie’s revenue share. This proposal suggests changing the rewards received by vlMGP holders from WOM to mWOM.

Motivation

This proposal aims to increase the benefits offered to vlMGP holders by Magpie by consistently converting WOM tokens into mWOM. The conversion will be done using the “Smart WOM Converter,” which will help maintain the value of mWOM relative to WOM. Once the price of mWOM reaches a healthy level, the conversion will be done by regular conversion of WOM. The goal is to increase the amount of veWOM held by Magpie, which will give vlMGP holders more voting power and a higher share of revenues. By supporting this proposal, vlMGP holders can contribute to the growth of Magpie and share the increased benefits offered by the platform.

Specification

Convert WOM rewards for Vote-Locked MGP holders from WOM tokens into mWOM tokens via the Smart WOM Converter before distribution.