Summary

WOOFi is an all-in-one decentralized application (DApp) built by WOO Network. WOOFI aims to optimize users’ experience with decentralized finance (DeFi) by providing ultra-low slippage, competitive exchange fees, and other useful features.

WOOFi users can redeem popular digital assets and have the opportunity to earn income by staking and providing liquidity to the network. One of the major value propositions created by the WOOFi platform for DeFi users is deep liquidity.

Introduction

Since 2020, the decentralized trading platform ( DEX) has experienced rapid growth. In August 2022 alone, the total monthly trading volume of DEX exceeded $66 billion. In order to meet the growing demand for low-fee on-chain transactions, WOO Network launched WOOFi and WOOFi DEX in October 2021 and June 2022. WOOFi and WOOFi DEX jointly provide a set of tools, ranging from enabling simple token exchange to professional trading interfaces.

How does WOOFi work?

WOOFi’s products are designed to help DeFi users obtain highly competitive prices, lower rates and bid-ask spreads, as well as various An opportunity to earn income.

The WOOFi platform mainly provides three major use cases:

Exchange

Users only need to pay a minimum fee of 0.025%. Use the WOOFi Swap function to exchange popular blue-chip assets that are financially sound within or between chains supported by WOOFi.

Financial Management

Anyone can deposit digital assets to earn competitive annualized yields (APY) through WOOFi's unilateral staking solution, Supercharger Vaults. Unilateral staking requires users to stake only one type of token. This model incentivizes asset token holders to inject liquidity into WOOFi, thereby enabling WOOFi to provide better liquidity to traders.

Staking

Token holders can stake their WOO tokens on the WOOFi platform and earn income from WOOFi’s exchange fees as low as 0.025%.

WOOFi Exchange

WOOFi is different from other DApps, it simulates WOO The deep liquidity of Network's centralized exchange (CEX) WOO X means that users can enjoy DeFi services at more affordable CeFi-level prices.

Other advantages of this mode include reduced slippage and increased resistance to sandwich attacks. Slippage is the difference between the market price of an asset and its actual price at the time the order is executed. When market conditions are unstable or the liquidity of assets is low, slippage is more likely to increase, causing traders to buy assets at a higher price than expected, or sell assets at a lower price than expected.

WOOFi DEX

WOOFi DEX will be launched in June 2022 and is WOO Network's decentralized trading platform, powered by Orderly Network. The WOOFi DEX platform is designed to provide high liquidity, advanced trading tools, customizable user interface (UI), and NEAR protocol’s transparent order book. With the WOOFi DEX platform, traders can enjoy faster transaction execution speeds and lower handling fees, and can also maintain custody of their assets.

WOOFi DEX facilitates spot trading of popular blue-chip assets such as Bitcoin, Ethereum and NEAR. In the future, the platform is expected to expand its service scope to implement functions such as margin trading, perpetual swaps, loans and even borrowing. Guided by leading market makers such as Kronos Research, AGBuild and Ledger Prime, the WOOFi DEX platform is positioned to provide an improved DeFi trading experience that looks and feels similar to a centralized trading platform.

WOOFi Supercharger revenue pool

With WOOFi, users can top up a single generation coins, earn competitive income, and at the same time have full access to their favorite assets.

WOOFi's liquidity providers can borrow up to 90% of the assets in the Supercharger revenue pool at a fixed interest rate to provide liquidity to WOOFi . The remaining assets will be deployed to third-party DeFi protocols for liquidity mining. By maintaining market neutrality through hedging on WOO Network’s centralized trading platform, WOO X, WOOFi’s liquidity providers ensure there is always enough funds for users to withdraw when needed.

This dual strategy allows depositors to provide liquidity to WOOFi while directly drawing from two independent sources of income. Profit. When the 7-day settlement cycle ends, users can request to withdraw their deposited assets without paying any fees and without any restrictions (except when the income pool is being settled). WOOFi will withdraw 10% of the total locked value (TVL) of each Supercharger revenue pool every week for instant withdrawals, but a 0.3% withdrawal fee will be charged to prevent abuse of the system.

What is unique about WOOFi?

sPMM Liquidity Model

Unlike most other DEXs, WOOFi does not adopt an automated market maker (AMM) model, but instead utilizes a new synthetic active market making (sPMM) mechanism to achieve deeper liquidity.

sPMM model is designed to simulate the deep liquidity of WOO Network’s centralized trading platform WOO X, allowing WOOFi Swap to maintain decentralization while Offering low slippage and competitive DeFi prices.

Prevent Sandwiching Attack

A malicious trader occurs when a malicious trader places orders before and after a pending transaction on a DeFi protocol to manipulate asset prices. A sandwich attack occurs. As a result, the attacker's bid is higher than the victim's pending bid, pushing the asset price higher. When the victim buys the asset at a higher price, the attacker can sell the asset at the new, artificially inflated price.

Sandwich attacks are common among large traders who exchange assets in AMM-based DEXs. Since the price discovery process of AMMs is driven by token balances in liquidity pools, attackers can exploit this transparency to drive up prices.

In contrast, WOOFi’s sPMM price discovery process is determined by on-chain price feed parameters, not by the liquidity of the fund pool Decide. Therefore, malicious traders will not be able to predict prices based on token balances.

Pay for order flow

WOOFi currently has a broker program that pays 0.5 basis points (bps) as a rebate for transaction volume sent by third-party DApps.

What is WOO?

WOO is the native token for WOOFi and the wider WOO product suite. WOO is used to provide staking rewards, fee discounts and governance rights in the WOO Network ecosystem.

How to buy WOO on Binance?

You can buy WOO on cryptocurrency exchanges like Binance.

1. Log in to your personal Binance account and enter [Trading] - [Spot].

2. Enter "WOO" in the search bar to view the available trading pairs. Let’s take the WOO/BUSD trading pair as an example.

3. Enter the quantity of WOO you wish to purchase in the [Spot] box. Here we take market order as an example. Click [Buy WOO] to confirm your order, and the purchased WOO will be deposited into your spot wallet.

Conclusion

WOOFi adopts a unique liquidity model designed to imitate the order book of traditional trading platforms to provide users with deeper liquidity, more competitive prices and better quality DeFi trading experience and other key advantages. Traders looking for lower slippage can click on the link below to learn more about WOOFi and the broader WOO ecosystem.