The Birth and Overview of WOOFi

Since 2020, the Decentralized Exchange (DEX) landscape has flourished, with trading volumes soaring to over $66 billion in August 2022. This rapid growth underscores the market's pressing demand for efficient, low-cost on-chain trading solutions. In response to this need, WOO Network seized the opportunity and launched WOOFi in October 2021, followed by the expansion with WOOFi DEX in June.


WOOFi, as an innovative suite of financial tools, aims to cater to a wide range of users' on-chain trading requirements, whether it's beginners seeking seamless token swaps or seasoned traders desiring high-performance trading interfaces. WOOFi and its accompanying WOOFi DEX provide comprehensive support and services to address these diverse needs. By leveraging superior trading resources and technological advantages, WOOFi strives to create a seamless, low-fee, and high-efficiency decentralized trading ecosystem, offering an unparalleled trading experience to users worldwide.

WOOFi's Functionality and Three Key Use Cases

WOOFi, a pivotal player in the Decentralized Finance (DeFi) landscape, strives to deliver exceptional trading experiences and abundant profit opportunities. Its core value lies in competitive pricing, low fees, and narrow bid-ask spreads achieved through an efficient technological infrastructure, while fostering diverse ways to earn.


Firstly, with its Exchange service, WOOFi Swap enables users to swap assets within or across supported blockchain networks at a nominal 0.025% fee. This feature is particularly appealing to those seeking secure and swift conversions of blue-chip assets and popular tokens at minimal cost.


Secondly, in the realm of wealth management, WOOFi's Supercharger Vaults offer a single-sided staking solution, opening new avenues for investors. By depositing one type of digital asset, users can earn attractive annual percentage yields (APYs) without the need for traditional liquidity mining that requires providing two assets simultaneously. This innovative approach lowers the entry barrier, encouraging more asset holders to contribute liquidity to the WOOFi platform, thereby enhancing overall market liquidity.


Lastly, WOOFi extends staking opportunities to WOO token holders. Users can stake their WOO tokens on the platform to share in the transaction fees generated by WOOFi's exchange services, enjoying additional income from the low 0.025% swap fee. This design bolsters the value-capture capability of the WOO token while incentivizing community members to actively participate in and support the healthy development of the WOOFi ecosystem.

WOOFi Swaps: CeFi-Level Liquidity with Low Slippage Benefits

WOOFi distinguishes itself in the swapping arena by successfully incorporating the deep liquidity mechanisms from WOO Network's centralized exchange (CEX), WOO X. This enables WOOFi users to enjoy decentralized finance (DeFi) transactions with price advantages and service quality on par with those of centralised exchanges (CeFi). The innovative approach allows for trades with lower costs and more stable market prices.


In particular, WOOFi emulates CEX's liquidity depth, effectively reducing slippage issues during trades. Slippage is the deviation between an investor's execution price and their intended price, often exacerbated during volatile markets or when asset liquidity is scarce. High slippage can result in traders paying more than anticipated when buying assets or receiving less than expected when selling.


Thus, WOOFi not only offers a seamless and efficient swapping experience but also significantly enhances resistance against slippage risks and sandwich attacks – strategies that exploit rapid trade sequencing to exploit middle-layer traders. This ensures users engaging in decentralized trading receive fairer, safer, and cost-effective services.

WOOFi DEX: A Decentralized Exchange with High Liquidity and Advanced Trading Features

Launched in June 2022, WOOFi DEX is a pivotal component of the WOO Network ecosystem. The platform's core technology is powered by Orderly Network, aiming to create a decentralized finance (DeFi) environment with high liquidity and a seamless experience comparable to centralized exchanges (CeFi).


Innovatively, WOOFi DEX introduces a transparent order book mechanism, leveraging the efficiency of the NEAR Protocol for fast trade execution. Users benefit from low trading fees, quicker transaction speeds, and full custody over their assets, granting more autonomy and convenience when trading popular blue-chip assets like Bitcoin, Ethereum, and NEAR.


Moreover, WOOFi DEX offers an array of advanced trading tools and a highly customizable user interface (UI), tailored to cater to traders at various levels. With plans to expand its services, WOOFi DEX envisions incorporating margin trading, perpetual swaps, lending, and borrowing, fostering a more comprehensive and diversified DeFi product suite.


By partnering with top market makers such as Kronos Research, AGBuild, and Ledger Prime, WOOFi DEX continually enhances market depth and improves user experience. Striving to maintain decentralization, it aims to provide a secure and convenient trading experience that combines the best of CeFi and DeFi for global traders.

WOOFi Supercharger Yield Pool: Dual Strategy for Safe, High-Yield Liquidity Provisioning

The WOOFi Supercharger Yield Pool is an innovative service within the WOOFi ecosystem designed to offer users low-risk, high-reward opportunities for asset appreciation. This mechanism allows users to deposit a single token and benefit from two distinct profit sources with minimal complexity.


Firstly, WOOFi's liquidity providers can borrow up to 90% of the assets in the Supercharger pool at a fixed rate, using this capital to provide liquidity to WOOFi. Meanwhile, the remaining 10% of the assets are invested in third-party DeFi protocols for yield farming, generating additional mining rewards. To ensure asset safety and liquidity, the WOO Network employs its centralized trading platform, WOO X, to execute hedging strategies, maintaining market neutrality and guaranteeing users can withdraw their funds smoothly when needed.


This unique dual-income model lets depositors profit from both the utilization of internal liquidity within WOOFi and the mining rewards from external DeFi agreements. Each Supercharger pool has a 7-day settlement period during which users can request fee-free and unrestricted withdrawals of their principal (except during settlement). To sustain system stability and deter abuse, WOOFi sets aside 10% of each pool's total value locked (TVL) weekly as instant withdrawal reserves, charging a 0.3% withdrawal fee for accessing these reserves.

What Sets WOOFi Apart: sPMM Mechanism Against Sandwich Attacks and Innovative Broker Program

WOOFi distinguishes itself in the decentralized finance (DeFi) landscape with its groundbreaking approach to the traditional automated market maker (AMM) model. At the core of its uniqueness is the adoption of Synthetic Proactive Market Making (sPMM), a design innovation that mimics the deep liquidity seen on WOO Network's centralized exchange, WOO X. This allows WOOFi Swap to offer lower slippage and more CeFi-like trading prices while maintaining decentralization.


Crucial in addressing common sandwich attacks in DeFi protocols, WOOFi's sPMM mechanism deviates from AMMs that rely on liquidity pool token balances for price determination. Instead, it employs on-chain oracle parameters for price discovery, significantly reducing the likelihood of malicious actors exploiting pool transparency for price manipulation. As a result, large traders on WOOFi can avoid additional costs associated with sandwich attacks.


Furthermore, WOOFi pioneers an innovative Broker Program, solidifying its position as an industry innovator. This program rewards participants who route trade volume to WOOFi through third-party DApps with a 0.5 basis point (bps) rebate as an incentive. Such a model fosters increased collaboration, directing order flow to the WOOFi platform, thereby fostering ecosystem growth and ensuring users enjoy efficient, secure, and cost-effective trading conditions.

WOO Token: The Native Asset and Functionality in the WOOFi Ecosystem

WOO serves as the intrinsic value carrier for WOOFi and its affiliated product suite, functioning as a vital native token within the WOO Network ecosystem. Users who hold WOO tokens benefit from an array of privileges and features:


1. Staking Rewards: By staking WOO tokens on WOOFi or through other platforms within the WOO Network, users can earn staking rewards, contributing to the appreciation of their assets and enhancing overall network liquidity.


2. Fee Discounts: Traders who hold and utilize WOO tokens are eligible for reduced fees when using WOOFi DEX and associated services, effectively lowering trading costs and maximizing capital efficiency.


3. Governance Rights: WOO token holders have the authority to participate in major decision-making processes within the WOO Network. Through community voting, they can positively influence the project's future development, fostering genuine decentralized governance.

A Simple Guide to Buying WOO on LBank

If you're looking to purchase WOO tokens on a crypto exchange, LBank offers a convenient option. Follow these straightforward steps:


1. Log In and Access the Trading Page: First, ensure that you have registered and logged in to your LBank account. On the homepage, locate and click on the [Trading] option, then select the [Spot] trading section.


2. Search and Choose a Trading Pair: In the search bar at the top of the Spot trading page, type "WOO." The system will display all trading pairs related to WOO. For instance, with WOO/USDT, you can select this pair for buying or selling.


3. Place a Buy Order for WOO: Within the chosen WOO/USDT trading pair interface, enter the quantity of WOO you wish to buy in the Buy (or Market) field. If you want to execute the trade at the current market price, opt for a market order. After confirming, click the [Buy WOO] button to submit your order.


4. Complete the Transaction and Token Deposit: Once your order is matched on the exchange, the purchased WOO tokens will automatically be credited to your LBank Spot Wallet, ready for viewing, management, or participation in various applications and investment activities within the WOOFi blockchain ecosystem.


With these easy steps, even beginners can comfortably buy WOO tokens on LBank, joining the WOOFi ecosystem and tapping into its financial services and profit opportunities.

Conclusion

In conclusion, WOOFi, a decentralized finance (DeFi) suite launched by WOO Network in response to market demands, has swiftly gained popularity due to its efficient tech infrastructure, competitive pricing, low fees, and diverse profit-making opportunities. By integrating centralized finance (CeFi)-level liquidity, high slippage resistance, and unique Supercharger reward pools, WOOFi offers an all-in-one on-chain trading solution for users across the board.


Looking forward, as WOOFi's decentralized exchange (DEX) expands and matures, the WOOFi ecosystem will continue to shape industry trends, providing a superior trading environment and unparalleled investment experience to global users. Simultaneously, it ensures security while actively contributing to the expansion and deepening of the DeFi landscape.