All you should know about WOOFi (WOO)

WOO Network created the all-inclusive decentralized application (DApp) known as WOOFi. By offering reduced slippage, low exchange fees, and other helpful features, WOOFi’s primary objective is to improve consumers’ experiences with decentralized finance (DeFi).

Users of WOOFi can exchange well-known digital assets and take advantage of opportunities for revenue generation including staking and lending money to the network. Deep liquidity is one of the platform’s primary selling points for DeFi consumers.

What is WOOFi(WOO)?

WOOFi is a capital-efficient decentralized exchange (DEX) supported by CeFi liquidity and institutional hedging. Decentralized exchanges have historically been compelled to compensate liquidity providers with inflating token payouts and high fees in order to create incentives. WOOFi, a component of DeFi 2.0, reduces these exorbitant fees by enabling customers to instantly compare pricing on different sites. Users can execute trades across numerous networks because to WOOFi’s implementation on numerous networks, which eliminates the risk of unbalanced liquidity pools.

Additionally, this platform’s user interface is quite easy to use. Users can pick between trading and staking using two buttons; all that’s left is for them to enter amounts to acquire quotes and compare costs.

In order to mimic CeFi conditions, this DEX depends on market data from the WOO network being continuously updated on the blockchain. WOOFi achieves this by making use of Chainlink’s oracle technology, which can sustain constant uptime even in the most unpredictable market circumstances.

The WOO network’s extensive market data and the technically superior Chainlink oracles work together to enable WOOFi to build customisable oracles based on institutional data.

WOOFi offers consumers superior execution paths as well as the opportunity to generate sustained income free of loss-related hazards. By offering affordable liquidity and the best prices for trades and liquidations, they help DeFi protocols. Finally, they play a crucial role in crypto projects because they offer effective cross-chain liquidity without the need for inflationary incentives.

WOO takes pride in being the only platform with great liquidity and no trading fees. It has continually sought to address the issues of fragmented liquidity and excessive spreads that crypto trader’s face.

How does WOOFi work?

To acquire and combine liquidity, WOO Network and Kronos Research employ quantitative trading and hedging strategies. Several centralized and institutional trading platforms, DeFi networks, such as Ethereum, BNB Chain, Polygon, and Avalanche, are used to aggregate liquidity. Clients can join the network directly on WOO X and WOOFi by utilizing the API or the GUI. Some people connect using DeFi platforms like 1inch, 0x, or Paraswap.

Additionally, market makers from other platforms, such as dYdX, may use WOO Network as a venue. The zero-fee idea and appealing taker order conditions enable low-cost hedging. Due to the exponential growth of well-liked platforms, volumes have been steadily rising, and by the middle of September 2021, the 24-hour trading volume had topped $2.5 billion.

WOOFi Swap

Users can enjoy DeFi services at more reasonable, CeFi-grade prices thanks to WOOFi, which simulates the deep liquidity from WOO Network’s centralized exchange, WOO X, unlike other DApps.

Using this style also has the benefits of less slippage and more resilience against sandwich attacks. Slippage is the gap between the market price of an asset and the price at which an order is actually filled. When trading with low-liquidity assets or in unpredictable market conditions, it is more likely to get broader, leading traders to purchase or sell their assets for more or less than anticipated.

WOOFi DEX

WOO Network’s decentralized exchange, powered by Orderly Network, and was introduced in June 2022 with the launch of WOOFi DEX. The platform was created to enhance the NEAR protocol with high liquidity, cutting-edge trading tools, a customized user interface (UI), and a transparent order book. WOOFi DEX assists in connecting traders to a platform that provides more rapid execution, lower transaction costs, and custody maintenance.

Spot trading of well-known blue-chip assets like BTC is made possible through WOOFi DEX. The platform is anticipated to grow its offerings in the future and add features including lending, borrowing, perpetual swaps, and margin trading. WOOFi DEX is positioned to give an enhanced DeFi trading experience with the appearance and feel of a centralized exchange because it is bootstrapped by top market makers like Kronos.

WOOFi Supercharger vaults

Simply put, the Supercharger vault generates yield from two distinct sources—liquidity provision and external yield farming—in a way that AMM pools cannot.

A base APY is produced by external yield farming on the deposited funds, and this usually involves a low-risk auto-compounding method like lending. Additionally, to provide liquidity on WOOFi, the WOOFi liquidity provider (Kronos Research) may then borrow up to 90% of the assets inside the vault at a preset rate. The loan might give depositors an even larger return because of the different risk profiles. By combining these tactics, users can boost WOOFi’s liquidity while also maximizing capital efficiency and earning yield with expert market makers.

The finest aspect is that there isn’t a temporary loss. By hedging their position on WOO X, the WOOFi LP reduces this risk and makes sure that there are always enough money available for customers to withdraw when they need them. All of this occurs during a 7-day settlement cycle that begins anew each week after a 24-hour settlement.

What makes WOOFi unique?

WOOFi is an Automated Market Marker based on BSC that sets prices using the Synthetic Proactive Market Making (sPMM) methodology. Most common AMMs employ the simpler, more traditional Constant Product Market Marker (CPMM). Swapping, earning, and staking are the 3 main services that WOOFi provides.

Swapping

In the liquidity pools of WOOFi, users can trade between token pairs. Compared to AMMs like Uniswap on Ethereum, the order book of a typical exchange is more comparable to the sPMM paradigm. To scan order book prices from centralized exchanges like Binance and determine an appropriate trade price, sPMM uses the market data oracles of WOO Network.

Instead of the conventional dual asset liquidity pool (LP) scheme, liquidity is provided by single pools. WOOFi manages and rebalances these assets by rewarding investors that provide low-liquidity assets.

Earning

Users can earn interest by adding their tokens to the liquidity pools of WOOFi. The interest rates are flexible and are based on the pool’s liquidity level.

Staking 

For users who want to increase the interest they receive on their deposited tokens, WOOFi offers staking services. Staked tokens give the pools liquidity and take a cut of the trading commissions.

WOOFi is a great option if you’re looking for an AMM that may offer reasonable pricing and cheap costs. It is even more appealing if you are an LP because you can earn income on your capital deposits.

How to buy WOOFI?

The first day WOOFi could be traded was May 12, 2021. Its entire supply is unknowable. WOOFi currently has an unknown USD market capitalization. WOOFi’s price is $0.0314 at the moment, and it is now number 3577 on Coinmarketcap. It has lately increased by 48.15 percent as of the time of writing.

WOOFi has been listed on several cryptocurrency exchanges, but unlike other major cryptocurrencies, it cannot be bought with fiat money straight away. Nevertheless, it is still simple to get this coin by first purchasing USDT from any fiat-to-crypto exchange and then transferring to the exchange that deals in this coin. In this article, we will go through the specific procedures to purchase WOOFi.

Conclusion

Deeper liquidity, more competitive rates, and an improved DeFi trading experience are all provided by WOOFi’s special liquidity model, which was created to simulate the order book of a regular exchange. For more information, see WOOFi and the larger WOO ecosystem if you’re looking for reduced slippage.