Summary
This proposal aims to re-list the updated World Mobile Token, WMTx, as a liquidity pool on Liqwid, enabling lending and borrowing functionality as isolated collateral in the ADA market. The proposal outlines the token’s migration from WMT, its functionality, market reasoning.
Original WMT list proposal on liqwid:
Project and Token Overview
World Mobile Token (WMTx) is the updated token of World Mobile’s ecosystem, following the migration from WMT. World Mobile is building a decentralized mobile and data-sharing network on Cardano, leveraging EarthNode operators for network transactions. The transition to WMTx maintains the same utility and functionality as WMT while enhancing compatibility with updated ecosystem protocols. For more details on the migration, refer to the official blog: https://worldmobiletoken.com/blog.
Key Features of WMTx:
Utilized within World Mobile’s sharing economy.
Essential for EarthNode operators and stakers.
Directly integrated with network transaction processing.
Supported by the World Mobile treasury buyback program to drive token utility.
WMTx Market Reasoning
WMTx retains the robust utility and market presence previously established by WMT. The token’s strong liquidity and trading volume make it a compelling candidate for integration on Liqwid.
Key Metrics Supporting WMTx:
Over ~25k token holders.
Daily trading volume of ~$2M across centralized (CEXs) and decentralized exchanges (DEXs).
Active utilization in the World Mobile sharing economy by EarthNode operators.
Continued buyback program leveraging revenue from commercial services to sustain demand.
Specifications
Proposed Market and Risk Parameters
Proposed Risk Parameters:
Conclusion
Re-listing WMTx on Liqwid aligns with Liqwid’s mission to support the Cardano ecosystem while leveraging WMTx’s utility, liquidity, and community engagement.
Do you support this proposal to add a WMTx liquidity pool on Liqwid?
I have often thought about WMTx and just have alot of questions, so basically neutral on this token and will vote no for now but may change my mind. How are the tokens supported across the different chains? How many tokens are on Cardano, vs. Ethereum and BNB? Can tokens move between chains and how interoperable are they (if at all?). I recall it was a one time move to migrate from WMT to WMTx on a particular chain but have not kept up with the tokenomics.
When the token was enabled, how much borrowing was it used to facilitate as collateral and how much income can that be estimated to have supported for the protocol?
There is a cost to run oracles for a token and the benefits need to outweigh the risks and potential expenses. Having a cross chain token would be a first for Liqwid and I admit I do not understand the potential risks associated with that. Especially related to oracle prices obtained from one other chain compared to Cardano oracles. For example, if something weird happens with the price on BNB, would that cause a bunch of liquidations for WMTx collateral backed loans? How much trust do we place in other chains’ prices vs. cardano, and if they diverge, what do we do about that from a protocol basis?
As a community, we have to do better at supporting ideas with facts and analysis. I am not trying to personally criticize anyone. It just seems like its a superficial idea with a “sales pitch” in the proposal that is without analysis. Several of us (me included) hold WMTx and want to see it’s inclusion, but we need to really think about it’s benefits and risks first. I would like it, but I first want to understand it will be the right move with limited risk. I do not see much analysis presented to support the current proposal.
I know early on when the protocol launched CNTs to be used in Liqwid, it was thought that they would drive borrow demand and overall protocol growth. We learned in hindsight that is not the case with a majority of what was listed. Example, the Optim bonds that were delisted also did not drive much usage to outweigh their costs and risks. The protocol is barely at $500K combined across all non-stable CNTs which is really miniscule borrow demand. That COULD change if ADA hits some kind of ATH peak and there is demand to borrow CNTs to short them. At the moment, that is not the case.
hey mate… you have a lot of good questions. There are many forums and live spaces to bring your questions forward to the community and quite ofter WM team members can give you the direct response. If you are on X @worldmobilers is a good community channel to follow and there is also telegram and discord.
I see it a bit differently when comparing it to Wanchain’s wrapped assets like BTC, USDT, etc. In fact, I might argue that Wanchain’s assets could carry a bit more risk than WMTx.
WMTx is integrated with Chainlink CCPI, which is widely regarded as one of the most secure cross-chain protocols.
As for tokenomics, there haven’t been any changes to the original WMT token. The main difference is that WMTx now has the ability to mint tokens for cross-chain transfers.
When it comes to revenue, WMTx is seeing around $2M in daily volume and is currently the third most liquid token on Cardano DEXs. It seems a bit surprising not to list the third strongest CNT, especially considering the metrics that were used when WMT was listed.
If we want to move proposals forward as a community, answers to these questions need to be brought forward and documented in this forum for Liqwid community members to follow along and agree or disagree with.
So tokens are minted and burned across chains at will, or as needed? That to me is a huge risk if the liquidity on WMTx suddenly vanishes because it is moved to another chain for some other yield chasing event.
Yes i can agree with your reasoning to having the conversations here. However, the detailed answers you are looking for may not be answered here as you can see not many registered votes.
Tokens will not be burned, quite positive about that. There will be the ability to migrate tokens across chains, but there will be fees. Liquidity will be a dance as it is now, especially when token staking. However there will be opportunities I imagine for arbitrage.