Metis CEG Program: WAGMI

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Wagami Logo.png ## Introduction

The WAGMI protocol is a limited TVL decentralised exchange with advanced liquidity provision strategies and GMI mechanics. Here is what we focus on:

1. Concentrated Liquidity utilization

The WAGMI Protocol incorporates the concept of concentrated liquidity. WAGMI employs advanced strategies for liquidity provision to optimize returns for users. Unlike earlier versions where liquidity was distributed uniformly across the price curve, concentrated liquidity enables liquidity providers (LPs) to allocate their capital within custom price ranges. This results in more efficient use of capital and greater fee earnings for LPs, as well as deeper liquidity for traders around the mid-price.

2. Active Liquidity Management

WAGMI continuously monitors market conditions and employs an auto-rebalance mechanism to adjust strategy settings, aiming to ensure higher rewards at all times, irrespective of market shifts.

3. Interoperability

By leveraging the omni layer technology, the protocol can interact with multiple blockchain networks, ensuring compatibility with a wide range of DeFi applications and assets. This cross-chain functionality not only broadens the scope of the WAGMI protocol's services but also promotes a more inclusive and connected DeFi ecosystem.

4. Composability

By offering a wide range of financial services and tools under a single umbrella, the platform enables users to create and execute complex strategies with ease. This modular approach allows for the seamless integration of new DeFi products and services, fostering innovation and growth within the ecosystem.

Uniqueness factor

Unique features of WAGMI:

1. Advanced Liquidity Provision Strategies: WAGMI employs advanced strategies for liquidity provision to optimize returns for users.

2. GMI Mechanics: The protocol introduces a system where users can acquire GMI tokens and benefit from profits shared among GMI holders from multi-pools within a larger GMI pool.

3. Automated Management and Rebalancing: WAGMI continuously monitors market conditions and employs an auto-rebalance mechanism to adjust strategy settings, aiming to ensure higher rewards at all times, irrespective of market shifts.

4. User-Friendly Liquidity Management: Users don't need to manually select pools for higher yields as the protocol manages liquidity and selects price ranges in pools to maximize yields, alongside diversifying funds among different pools for security.

5. Multi-Pool Structure: Within GMI, there are multiple multi-pools, and each multi-pool consists of multiple V3 pools, creating a nested structure of liquidity pools.

6. Cross-Blockchain Deployment: The protocol was initially deployed on the Zksync Era mainnet, then on Fantom Opera, and Kava with enhanced features. Metis will be the first network to support both the WAGMI dApp and an extra Perps Trading platform.

7. Profit Sharing Among GMI Holders: Profits generated from all multi-pools within GMI are shared among GMI holders according to their share of GMI, serving as a diversification tool and incentive for users.

Value Proposition

The WAGMI protocol is designed to maximize the utilization of liquidity under management, optimizing returns for liquidity providers. By employing advanced liquidity provision strategies and an auto-rebalancing mechanism, the protocol ensures that the funds are allocated in a way that they generate higher yields, regardless of market shifts. The sophisticated liquidity management, represented through its GMI mechanics, simplifies the process for users, who no longer need to manually ascertain which pool is currently more profitable. The protocol's multi-pool structure and cross-blockchain deployment enhance liquidity access and diversification, fostering a more rewarding and secure environment for users. Through such measures, the WAGMI protocol significantly benefits its users by making liquidity provision in a user-friendly endeavor.

Furthermore, while WAGMI has already deployed on the Kava Network, Metis will be the first network to host the WAGMI dApp with an additional Perps Trading platform on it. Perps Trading is one of the biggest drivers of ecosystem growth in all of DeFi.

Benefits for Users

The Metis community will gain a popular, battle-tested decentralised exchange with numerous opportunities for DeFi users.

In addition, having the option to trade $METIS (and other tokens) with leverage creates a new and exciting user experience.

Roadmap

January 2024 - deployment of WAGMI DeFi suite on Metis (GMI, LP strategies and leverage included)

Audit

All WAGMI components have been thoroughly checked by various audit companies:

https://github.com/RealWagmi/wagmi-leverage/tree/main/audit

https://wp.hacken.io/wp-content/uploads/2023/09/Wagmi_SC-Audit-Report_21092023_SA-1594.pdf

https://github.com/sherlock-audit/2023-06-real-wagmi

https://github.com/sherlock-audit/2023-10-real-wagmi

Summary

WAGMI proposes to deploy its decentralised exchange and perps trading protocol on the Metis network, with live launch scheduled for as soon as both the WAGMI and Metis communities approve the respective governance proposals.