Have you ever heard about WOO Network? This project is a broad liquidity network that connects traders, exchanges, institutions and DeFi platforms. The project stands out for providing democratized access to market liquidity, trading execution and performance generating strategies. All this at a lower cost or even for free. In this article we will tell you all about what it is and how it works.
In this project, CeFi, or centralized finance, meets DeFi, or decentralized finance, to create a very interesting ecosystem. Thanks to this project, traders, institutions, exchanges and DeFi platforms gain democratized access to the best liquidity and trading execution available for a very low cost.
This project has its beginnings in 2019, when it was “incubated” by Kronos Research. Kronos Research is a quantitative trading company that has long been noted for leading one of the top positions as a leading market maker on all major exchanges.
The company generates a daily volume of between $5 and $10 billion. After many years of experience, the company’s development team began to notice a significant deficiency; liquidity was insufficient and unavailable at numerous centralized and decentralized exchange houses.
Some time later, the Kronos company collaborated in the launch of WOO Network. Currently, this platform offers a set of products that allows users to have greater liquidity and lower or even no commissions. In January 2022, a Series A+ funding round of WOO Network was launched, raising a total investment of $12 million.
Most of WOO Network’s services are divided between WOO X, a centralized exchange (CEX), and WOOFi, a decentralized exchange (DEX) and staking platform. WOO Network also offers WOO Trade for institutional clients. As a result, it is possible for partner exchanges to integrate WOO Network liquidity into their services via API.
This platform works primarily with Kronos Research. Both seek to aggregate and integrate liquidity using quantitative trading and hedging strategies. Such liquidity is aggregated from a set of leading centralized and institutional trading platforms and, more recently, through DeFi networks such as Ethereum, Polygon and Avalanche. Users establish the connection directly to the network via API or GUI in WOO X and WOOFi. Another way for users to connect is directly via DeFi platforms such as 1inch, 0x or Paraswap.
Not only individual users use this platform, market makers from other platforms, such as dYdX, can also connect to WOO Network as a way to hedge exposure. The platform is very attractive due to its zero commission model and favorable terms for taker orders. These features make it ideal for low-cost hedging.
WOO Network volumes have been growing steadily and, as of mid-September 2021, 24-hour trading volume reached $2.5 billion. This growth was mostly driven by the exponential growth of popular platforms such as dYdX.
WOO X is the platform’s flagship product. It offers Centralized Finance (CeFi) trading services. In addition, this exchange features low commission trading, ample liquidity and customizable workspaces.
As we all know, commissions are a key element to consider before choosing any platform. Users who trade on WOO X manually, i.e. without using an API, have the possibility to reduce their maker and taker commissions when they obtain Level 2 status.
This Tier 2 will be available to those users staking 1,800 WOO or more in WOO X. Occasionally, CEX will apply additional benefits to Tier 2 users.
As for its liquidity, WOO Network obtains it from traders using the platform, professional liquidity providers, market makers, exchanges, and institutions. Although WOO X has several providers, the most prominent is Kronos Research, the market making oriented trading firm. By providing a deep liquidity base through Kronos Research, WOO X is able to attract even more liquidity to the network.
Another outstanding feature of WOO X is the customizable workspaces. WOO X allows users to customize their trading view through widgets, charts and other customizable elements. For more experienced traders, WOO X gives them access to the information and tools they need. Another element that offers advanced charting tools to create indicators for technical analysis is TradingView.
Like most projects, WOO Network has its own native token called WOO. This token represents the unifying force of all DeFi and CeFi products and services provided. WOO has a limited supply of 3 billion tokens. This amount will gradually decrease due to monthly token burning. This token burning will stop when half of the entire maximum supply has been burned.
The WOO token functions as a utility token that exists on multiple blockchains such as Ethereum, Avalanche, Polygon, Solana, Arbitrum, Fantom and NEAR. In addition, WOO is integrated into prominent decentralized exchanges on numerous chains such as SushiSwap, Uniswap, PancakeSwap, QuickSwap or SpookySwap.
This WOO token offers access to commission-free trading on WOO X, as well as trading discounts (from Trade-to-Earn), staking, rebates, WOO Ventures airdrops and even governance utilities.
In addition to these basic utilities, the WOO token will be important in aspects such as lending, as users will be able to use it as collateral to borrow cryptos and lend cryptos to other users. It also has a key role in social trading. In the future, WOO stakers will have the possibility to emulate highly professional trading strategies of the best traders. Another important aspect of this token is that users can employ it for staking and thus reduce commissions.