So, once we converted MEMO into wMEMO, what’s next? It’s no longer staked, what’s the purpose of it? This may be obvious for most people here, but I was unable to find any info or guidance on the conversion process apart form the medium post which, somewhat, makes it even harder to comprehend.
There are links to sushi exchange and says “wMEMO liquidity on sushi”, does this mean that we’ll be now incurring eth fees to use it? This is getting very tangled and illogical in my opinion.
Please help to clarify.
Cheers.
You can either choose to do nothing and collect the rebases or use it as collateral and attempt to not get liquidated on abracadabra (probably don’t do that) its basicly the same as normal memo all wrapping does is help with taxes if you live in an area that you have to worry about that sort of thing! Soooo yea good luck!
3 Likes
Does the amount of wMEMO in the wallet grow with rebases? I was pretty happy collecting rebases in MEMO (apart from price drop) until this whole thing changed.
I’m not 100% on that but from my understanding is the number of wmemo doesn’t grow but the value inside does, so basicly with their cookie analogy the wrapped part of the wmemo is the cookie wrapper(doesn’t grow) and you get more cookies (memo) inside the wrapper…if that makes sense
1 Like
Makes sense… but sounds sketchy. So we’re basically back to square: betting on price growth?
1 Like
Oh definitely 100% sketchy but this is crypto baby if some random people on the internet can make millions off of pictures of monkeys and coins that are named after dead memes of a dog why not bet on a sketchy coin with a stupid number for an apy run by a man that post memes of himself fucking a cartoon bear on his Twitter lol
3 Likes
@lvlslip This comment made my day 
I also don’t understand the whole crypto thing fully, I just want to get a piece of the pie by being patient and wait…hopefully it turns out great in a few months.
2 Likes
Some things you can do with $wMEMO:
-
You can enter in a liquidity pool on sushiswap. Meaning you’ll have to supply an equal ratio of $wMEMO and $MIM. You’ll then receive rewards of the trades that happen when people swap [$wMEMO/$MIM]
This is risky because you are susceptible to impermanent loss. DYOR -
Bridge to other networks like Fantom, BSC or Arbitrum.
You could not bridge with $TIME or $MEMO before. There aren’t many use-cases but:
On Fantom, you can join pools on https://www.reaper.farm/ or https://app.grim.finance/
Again, assess risk if you want to do that. -
You can deposit your $wMEMO into abracadbra as collateral abracadabra.money
and borrow $MIM. You can do whatever whatever you want with the $MIM. Some have decided to buy more $wMEMO (referred to as 9,9)
But you have to be very careful, because if the price of $wMEMO drops low enough, you could lose all your collateral, this is known as being liquidated. -
You just hold $wMEMO and do nothing. Your balance of $wMEMO will not grow. But the amount of $MEMO inside grows. You can see this if you decide to unwrap, you’ll receive:
Your original $MEMO plus additional $MEMO from rebases.
4 Likes
Thanks for a comprehensive reply.
Point 1. Liquidity pools is a sure use case, but so is for many other assets regardless of their inherent utility.
Pont 2. I think here is an advantage that wMEMO may offer due to interoperability.
Pont 3. I believe, the same could be done with MEMO previously, so not sure if there’s any advantage of holding wMEMO.
Point 4. Here is what I really struggle with. Why not just stick to MEMO that is a staked representation of TIME? By packaging MEMO ( which is already a derivative) into something else what gets achieved?
Ultimately, for wMEMO to grow we still need price of TIME to go up, right? Otherwise wMEMO will simple consist of ever increasing number of MEMOs with the diminishing price? This may be innovative, but getting was too obfuscated in my opinion.
I believe, the same could be done with MEMO previously, so not sure if there’s any advantage of holding wMEMO.
I don’t believe so.
Why not just stick to MEMO that is a staked representation of TIME?
You can if you want. There’s no difference to the amount of MEMO you’ll ultimately end up with.
By packaging MEMO ( which is already a derivative) into something else what gets achieved?
Tax reasons is a big one. But if you don’t care of the other points. Nothing else gets achieved.
Althought Wonderland may implement revenue sharing where (from what i can gather), you can stake $wMEMO and receive rewards in other tokens (such as BSGG). This is not related to the airdrop.
Ultimately, for wMEMO to grow we still need price of TIME to go up, right?
Yes.
Otherwise wMEMO will simple consist of ever increasing number of MEMOs with the diminishing price?
Yes. The MEMO will be ever-increasing. Price is determined by the market.
1 Like
We should pin this comment! 
1 Like
Thank you for breaking this down. As it seems, indeed, tax reasons can be a driving force behind the invention of wMEMO!
This topic was automatically closed 7 days after the last reply. New replies are no longer allowed.