Road to Mainnet: Wombat Exchange

Entangle is excited to partner with Wombat Exchange, integrating LP tokens of Wombat’s hyper-capital-efficient decentralized exchange (DEX) into our Liquid Vaults. Wombat, known for its multichain, cross-chain capabilities, has processed over $3 billion across multiple blockchains.

This collaboration targets enhanced liquidity provision and yield generation, addressing fragmented liquidity and setting new DeFi optimization standards. This partnership aims to advance the DeFi ecosystem through improved operational efficiency, supported by Entangle’s Data Feeds.

The Challenge

Before integrating Wombat Exchange with Entangle's Liquid Vaults, DeFi faced yield, liquidity, and LP asset limitations. High entry barriers and complex yield farming made earning labor-intensive. Liquidity management was challenged by high gas fees and slippage, affecting trade execution and DApp competitiveness.

LPs, restricted to earnings from specific pools, lacked flexibility for better opportunities, leading to constant asset shifting for higher yields. This resulted in low DApp retention rates and inefficient capital use, as assets were locked without exploring further yields.

Benefitting Both Ecosystems

The integration between Wombat Exchange and Entangle's Liquid Vaults streamlines liquidity provision and enhances yield generation for users while bolstering Wombat's position in the DeFi ecosystem. Here's how:

For Users:

1. Simplified Asset Management: On Wombat, users can easily provide single-sided liquidity (e.g., DAI), simplifying investment.
2. Automated Yield Enhancement: The integration facilitates the automatic conversion of Wombat LP tokens into CDT tokens, optimizing yields without manual intervention.
3. Increased Financial Opportunities: Entangle’s Liquid Vaults allow for broader participation in lending and borrowing across DeFi platforms, further improving capital efficiency.

For Wombat Exchange:

1. Enhanced Multichain Capabilities: The partnership emphasizes Wombat’s strength in multichain and cross-chain operations, attracting more liquidity from various chains.
2. Improved Liquidity Management: Features like auto-compounding and conversion to CDTs provide stability during market fluctuations, encouraging sustained liquidity provision.
3. Growth in User Base: The enhanced product offerings, including yield optimization and capital efficiency, attract new users, expanding Wombat’s community.

This collaboration not only simplifies DeFi participation for users but also reinforces Wombat Exchange’s infrastructure and appeal, driving growth and innovation in the sector.

Conclusion

The fusion of Wombat Exchange LP into Entangle Liquid Vaults marks a pivotal moment for all users who utilize the products that conform to the integration.

This partnership is poised to set new benchmarks for streamlining liquidity provision, optimizing liquidity management, enabling capital efficiency, and broadening the user base by solving critical issues of liquidity fragmentation, limited use of LP assets, and enhanced yield generation.

As Wombat Exchange continues to lead with its multichain and cross-chain DEX services, the integration with Entangle's Liquid Vaults is poised to expand its market reach, attract a diverse user demographic, and reinforce its position as a cornerstone of DeFi innovation.

We encourage everyone to explore the benefits of this integration and join us on the path to more efficient DeFi operations. For more information, visit our website or follow us on Twitter to stay up-to-date.