wax worms are a poor choice of feeder, BTW
(high in fat, low in nutrition)
Mealworms are also light on nutrition, and are hard for chameleons to digest.
Superworms (zophobas) are high in fat, but can be gutloaded and make a decent feeder option. Good for helping to fatten up a thin chameleon.
Butterworms are a good choice for fattening up a thin chameleon.
Crickets are a good general choice, though they must be gutloaded and calcium supplemented. Silkworms are also a good choice.
My females get cages 2 foot by 2 foot and 4 foot high, so your cage sounds very small to me.
Yes, waterfalls are an very very bad idea. Do a search on the forum and you'll find plenty of threads about it. You might also check out my blog entry:
https://www.chameleonforums.com/blogs/sandrachameleon/92-hydration-importance.html
If you fill out the How To Ask Questionaire, you'll get a lot of feedback on your set-up and husbandry.
https://www.chameleonforums.com/how-ask-help-66/