[Company Watch] WePiggy, the Chinese Compound (New Defi Series 2/5)

The Serenity Research
3 min readMar 16, 2021

We have a key strategy since the inception and this is to deposit and borrow stablecoins in Compound, to mine the platform tokens. Details of this strategy are in the article here and also in our weeklies. Compound is the leading lending platform of defi and this article we are introducing its Chinese peer, WePiggy.

WePiggy is a new lending market, originated from YFII community and grew to $30m TVL in a few months time. YFII is a similar to an early version of Yearn (YFI), and is backed a team of Chinese.

WePiggy has similar functions as Compound, where users can deposit and borrow. For now, its tokens are limited to BTC, ETH, USDC, DAI, USDT, UNI and of course, YFII. The borrowing cost in WePiggy is on the low end, compared to those of Compound, dydx or Aave. (Data from LoanScan.io).

Similar to Compound, user of WePiggy can earn platform tokens, WPC, from both borrowing and providing liquidity. The action of borrowing will reward the borrower 1~3 WPC tokens a day, for every $10,000 borrowed. The liquidity provider, however, has to deposit again the LP tokens (pTokens for proof of providing liquidity) into the reward pools, in order to get WPC rewards.

LP tokens deposited into the pools for rewards cannot be used as collaterals for borrowings. This is different from Compound, and our leveraged COMP mining strategy does not work in the case of WePiggy. As of now, there are $10.2m liquidity in the reward pools, out of a total of $30m TVL. This is also the reason why the utilisation rates of borrowing pools are not high — which benefits borrowers as well.

Its platform tokens are not in circulation yet and there’s no clear date as to when it will be launched. The rewards allocation will be retrospective, based on the borrowings and liquidity provided. Each pool has a weight, the higher weights indicating a higher share of the allocation. As of 20 Feb, the weights for pools are as follows:

The source of the table is from WePiggy’s announcements site. It also has a Medium article explaining the calculations.

In addition to Ethereum, WePiggy has recently moved to a few other chains like Huobi’s ECO and OkChain.

Interestingly, the team has an online table that actually tracks the process of its operational task on a daily basis. Whilst it looks very much like an internal task list, it does give the community a sense of what’s going on.

Recently, WePiggy has received a strategic investment from Mars Blockchain and Consensus Lab. WePiggy will work together with Mars Blockchain and Consensus Lab.

Look forward to the day of the launch of WPC and hope WePiggy to prosper in the long run.

(Serenity Team, 16 March 2021, Twitter: https://twitter.com/SerenityFund)

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