Summary

WOOFi is an integrated decentralized application (DApp) built on the WOO network. The main goal is to improve users' experience in decentralized finance (DeFi) by providing reduced slippage, competitive swap fees, and other useful features.

WOOFi users can swap popular digital assets, gain monetization opportunities, and provide the network with liquidity. One of the unique characteristics of the platform for DeFi users is its large liquidity.

the introduction

Since 2022, decentralized exchanges (DEX) have seen rapid growth. The total monthly trading volume on decentralized trading platforms exceeded $66 billion in August 2022 alone. In order to meet the ever-increasing demand for low-fee on-chain trading, WOO Network launched the WOOFi App during October 2021 and the WOOFi Decentralized Trading Platform in June 2022. Together, the WOOFi App and the WOOFi Decentralized Trading Platform offer a bouquet of tools that allow for simple swaps to professional trading interfaces.

How does WOOFi work?

WOOFi's products are designed to help DeFi users access competitive pricing, low fees, tight bid/ask spreads, and a variety of revenue opportunities.

This platform has 3 main use cases:

Swap

By paying a small fee of 0.025% with WOOFi's swap feature, users can swap popular, financially stable and premium assets within or across chains powered by WOOFi.

Profits

Anyone can deposit digital assets to earn competitive annual percentage returns through WOOFi's single-sided storage solutions and Supercharger Vaults. Single-sided storage requires users to store one type of token. This model incentivizes asset holders to provide liquidity to WOOFi, and in return allows WOOFi to provide better liquidity levels to traders.

Storage

Token holders can store WOO tokens on the WOOFi platform to earn revenue from WOOFi's meager 0.025% swap fee.

WOOFi swap

Unlike other decentralized applications, WOOFi mimics the significant liquidity of the WOO Network's central trading platform, WOO

Other advantages of using this model include reduced slippage and increased resistance to internal attacks. Slippage refers to the difference between the market price of an asset and the actual price when the order is executed. This spread is likely to widen when the market experiences volatility or when assets are trading low, prompting traders to buy or sell their assets for more or less than expected.

WOOFi decentralized trading platform

Launched in June 2022, WOOFi Decentralized Trading Platform is a decentralized trading platform for the WOO Network and powered by the Orderly Network. The platform is designed to provide higher levels of liquidity, advanced trading tools, a customizable user interface, and an order list for the NEAR protocol. WOOFi's decentralized trading platform helps connect traders to a platform that enables faster order execution, lower fees, and allows traders to maintain discretion over their assets.

WOOFi's decentralized trading platform facilitates instant trading of popular blue-chip assets such as BTC, ETH, and NEAR. In the future, the platform is expected to expand its range of services and implement functions, including virtual trading, perpetual swaps and borrowing. A leading group of market makers including Kronos, Research, AGBuild, and Ledger Prime have qualified the WOOFi decentralized trading platform to provide an enhanced DeFi trading experience similar to a centralized trading platform.

Supercharger safes on WOOFi

The WOOFi app allows users to deposit an individual token and earn competitive returns while maintaining full exposure to their preferred assets.

Up to 90% of the assets in the Supercharger vault can be borrowed from WOOFi's liquidity provider at a fixed rate to provide liquidity to WOOFi. The remaining assets are deployed on external DeFi protocols for external revenue collection. By hedging on the WOO Network's central platform, WOO

The dual strategy allows depositors to directly benefit from two separate revenue streams while providing liquidity to WOOFi. Users can request to withdraw their deposited assets without fees or limits (except during treasury settlement) once the settlement cycle is completed within 7 days. 10% of all Total Reserved Value (TVL) will be allocated to the Supercharger Vault weekly for instant withdrawals, although a 0.3% withdrawal fee will be charged to prevent abuse of this system.

What features are unique to WOOFi?

sPMM liquidity model

Instead of adopting an automated market maker (AMM) model similar to other decentralized trading platforms, WOOFi has a proactive synthetic market making model (sPMM) to achieve significant liquidity.

The sPMM model aims to catalyze significant liquidity from the WOO Network's decentralized trading platform, WOO

Protection from insider attacks

Insider attacks occur when a malicious trader places one order before a pending transaction and another after it on a DeFi protocol with the aim of manipulating the price of an asset. The exploitative trader thus pushes the price of the asset higher by placing a bid at a higher price than the victim's pending bid price. When the victim buys at a high price, the attacker can sell their assets at a new, artificially inflated price.

Insider attacks are common among large traders who swap assets on decentralized trading platforms based on the automated market maker model. Because the automated market maker's price setting is driven by token balances in the liquidity pool, attackers can take advantage of this transparency to inflate prices.

In contrast, the price of WOOFi's sPMM model is determined by on-chain price feed parameters rather than a liquidity pool. Those with malicious intent will not be able to predict prices based on token balances.

A decentralized trading platform that pays for order flow

There is currently a brokerage program on the WOOFi app, where you pay 0.5 basis points on trading volumes sent from dApps in the form of rebates.

What is WOO?

WOO is the native token used on the WOOFi app and the wide range of WOO products. It offers storage rewards and fee discounts, as well as governance rights across the WOO network ecosystem.

How do I buy WOO tokens on Binance?

You can buy WOO tokens on cryptocurrency exchanges like Binance.

1. Log in to your Binance account, then go to [Trade] → [Instant].

2. Type “WOO” in the search bar to view available trading pairs. We will use the WOO/BUSD trading pair as an example.

3. Go to the [Instant] box and enter the amount of WOO tokens you wish to purchase. In this example, we will use a market order. Click [Buy WOO] to confirm your order, after which the amount of WOO you purchased will be added to your instant wallet.

Concluding thoughts

The unique liquidity model used in WOOFi is designed to mimic the order list of a traditional trading platform to provide key benefits including greater liquidity, lower-cost prices, and an overall improved DeFi trading experience. For those looking to reduce slippage, check out the larger WOO blockchain ecosystem for more information.