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WOO Network launches WOOFi Stake on BSC

The WOO token now directly captures value from DeFi trading

Getting you up to speed:

In November, WOO Network launched WOOFi Swap, a decentralized exchange with the innovative Synthetic Proactive Market Making (sPMM) algorithm. The goal was to grow our on-chain trading volume in a capital efficient way by combining our background as professional market-makers to improve users’ DeFi trading experience.

Users could swap assets directly through the interface or through one of the connected aggregators, such as 1inch, OpenOcean, or wallet apps such as ONTO Wallet

Since the alpha launch, WOOFi has processed $14 million in trading volume with just $700K in TVL split over five assets, proving its ability to compete on pricing with only a fraction of the TVL a standard AMM must maintain.

The sPMM algorithm is designed for professional market makers to provide on-chain liquidity in a way that better simulates the price, spread, and depth of an order book on centralized exchanges. This results in improved price execution, as well as more resistance to sandwich attacks. The order flow from WOOFi Swap is hedged back onto the WOO Network, which brings more trade volume and revenue while preventing the liquidity pools from suffering impermanent loss. At 0.1%, fees on each swap were around one-third the fees of other mainstream DEX protocols. With the latest update to WOOFi swap, fees are being reduced even further to 0.025%, just 1/12th of what users pay on Uniswap V2.

So what’s in it for WOO token holders?

The key to any successful DeFi token ecosystem is having sustainable value capture. WOOFi will now accomplish this with the creation of WOOFi Stake, an on-chain staking product that allows holders to place their WOO tokens into a smart contract using a Web3 wallet like MetaMask, Binance Wallet, or ImToken. WOOFi Stake users will soon earn transaction fees from WOOFi Swap, giving WOO stakers sustainable and non-inflationary yield from on-chain trading activity.

Key information on WOOFi Stake:

  • WOO is staked on-chain, minting xWOO for the user — xWOO is the LP token for WOOFi Stake.
  • 0.02% of every transaction goes to a pool, which periodically buys back WOO (at least once per day) and distributes it proportionally among the xWOO holders
  • The remaining 0.005% will be used to further incentivize adoption through future initiatives like rebates or referral bonuses.
  • The value of xWOO to WOO will keep increasing as more transaction fees are accrued, so your xWOO balance will not increase but the underlying value redeemable in WOO will grow.
  • To encourage long-term staking, users who unstake are subject to a 7-day unstaking period, similar to the unstaking period on WOO X. Instant unstaking will be subject to a 5% penalty, with the 5% also distributed to xWOO stakers.
  • To further incentivize early stakers, 50,000 monthly WOO rewards will be added to WOOFi Stake to enhance yields for the first two months. In addition, the WOO liquidity incentives on Uniswap and Sushiswap on Ethereum mainnet will be ended to encourage the adoption of native token utility.
  • The staking smart contracts have been audited by Certik and the report is available online.

This is a condensed version. For the full details and explanation, check out learn.woo.org.

What’s next for WOOFi and xWOO

WOOFi Swap is going to continue to add assets and integrate with more networks, with the ultimate goal of bringing more on-chain volume to WOO Network. Networks shortlisted for possible deployment include Avalanche C-Chain, Fantom, Arbitrum, NEAR, Solana, Polygon, Ethereum, BitTorrent Chain. In the future, xWOO can be integrated with DeFi platforms, such as allowing users to collateralize loans with their interest-bearing xWOO. These types of integrations will help DeFi traders unlock more utility and additional yield opportunities by staking WOO on-chain.

How can users get WOO on BSC?

Users can withdraw WOO on the BSC Network via WOO X and Gate.io. For on-chain bridging, Anyswap can also move WOO between BSC, Ethereum, and Fantom networks.

Stay tuned for all WOO Network’s exciting developments over the holidays!

The content above is neither a recommendation for investment and trading strategies nor does it constitute an offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.

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WOO Network

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Disrupt markets, empower individuals

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