Today we will continue to talk in order of market value. Recently, I am planning to make the most detailed and comprehensive classification of leading projects in various fields of blockchain in the universe. I am already halfway through it and then shared it with our group to get feedback from my friends. Not bad. Then I will listen to everyone’s opinions and enrich the content of this thing. The project I’m talking about today is Woo Network, because its market value has risen to the top 100. The current market value has reached 300 million US dollars, ranking 90+. Let’s analyze it today.
Introduction
WOO Network is a deep liquidity network that combines CeFi and DeFi. WOO Network brings together global liquidity, market makers and quantitative trading strategies to provide low-cost and sufficient trading depth for exchanges, wallets, DeFi platforms and large traders. WOO Network was incubated by Kronos Research, a digital currency market maker and quantitative trading company. It is a multi-strategy trading company specializing in market making, arbitrage, CTA and high-frequency trading (HFT), with a daily trading volume of 5 to 10 billion US dollars. .
WOO Network's various services are centered on the utility token WO0. By staking WO0 tokens on WO0X, users can reduce or offset transaction fees and API transaction rate limits, and increase the impact of referral rebates. In DeFi applications, WOO tokens can be used to provide liquidity through liquidity mining, or as collateral for lending other crypto assets.
background
Decentralized exchanges (DEX) have experienced rapid growth since 2020, with monthly DEX trading volume exceeding $162 billion in May 2021. Most DEXs no longer use order books, but instead use automated market makers (AMM) designs to channel passive and algorithmic liquidity into liquidity pools. Through this method, liquidity takers can trade with AMMs of any size. To compensate liquidity providers (LPs) for temporary losses, traders typically pay a fixed fee of up to 0.3%, which is proportional to the amount of liquidity provided by each LP. Transaction fees, plus gas fees that vary from network to network, make the cost of trading on DEX much higher than on centralized exchanges (CEX). In comparison, CEXs typically charge no more than 0.1%, which can be even lower through rebates.
The Active Market Making (PMM) algorithm, first introduced by DODO, is another method that has proven to be highly performant and capital efficient through its on-chain order book generation. In addition, DODO allows professional market makers to create private liquidity pools and have more control over quotes to further improve capital efficiency.
The SPMM used by WOO Fi is an improved version of PMM (Active Market Maker). The sPMM mechanism is specially designed for professional market makers to provide on-chain liquidity in a way that better simulates the price, spread and depth of the order book of a centralized exchange. . According to tests, WOO Fi’s sPMM liquidity pool can achieve more than 300% capital efficiency (i.e., trading volume to liquidity ratio), which is higher than all other DEXs on the market, and achieves the lowest transaction fee (0.025%).
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 centralized exchange order books.
Product Series
Currently, a series of products and services connecting retail, institutions, CeFi and DeFi have been built:
1.WOO X is a zero-fee trading platform that provides professional and institutional traders with first-class liquidity and execution. It has fully customizable modules for workspace customization.
2. Wootrade Spread is a portal for institutional clients (such as exchanges) to access WOO Network liquidity to upgrade their order books to a deeper depth than top exchanges and tighten their buying and selling.
3. WOOFi is a set of DeFi products designed to extend WOO Network’s liquidity network to DeFi and help DeFi users obtain the best pricing, smallest bid-ask spreads and profit opportunities when trading
1.WOO X
WOO X is the flagship CEFI product with built-in WOO network. WOO X is powered by industry-leading market makers, global liquidity pools and quantitative trading strategies. Featuring first-to-market zero-fee trading, deep liquidity, and a fully customizable workspace, WOO X provides professional and institutional traders with the ultimate trading experience. Zero Fee Trading Manual non-API traders can reduce their maker and taker fees to zero after staking 1,800 WOO tokens on WOO X to reach Tier 2.
WOO X fee structure at launch
Deep Liquidity WOO X
One of the biggest differentiators is its deep liquidity across trading pairs. Comparing the liquidity scores of major trading pairs reveals that WOO X’s market depth on the buy and sell book exceeds that of the top exchanges. This deep liquidity allows large orders to be executed without severe price slippage. Coupled with zero-fee trading, the cost savings through low slippage and fees are perfect for any professional trader who frequently trades large volumes. This allows users to experience democratized liquidity that is otherwise only available through OTC trading. In addition to the organic liquidity generated by WOO X order flow, the deep liquidity on WOO
Kronos Research's initial role is to guide liquidity on WOO X. This will provide instant deep liquidity across various token pairs to help the platform attract traders and gain a sufficient number of users to incentivize other market makers to further increase liquidity. Over time, the goal is for the old saying to become Reality: Liquidity begets liquidity. This maturity will allow WOO X’s liquidity to deepen in a virtuous cycle.
2. WOOF
As the DeFi industry matures, we expect it to gradually compete with centralized exchanges in terms of trading volume, liquidity, and transaction costs.
WOO Network already helps decentralized exchanges and market makers by introducing liquidity on-chain using a combination of liquidity pools, on-chain quotes, and hedging strategies. This approach, in turn, enables WOO Network to internalize on-chain order flow. The toolset has been powering on-chain market-making strategies, with an average daily trading volume of $300 million. These trading strategies span multiple blockchains and scaling solutions, including DEXs like DODO, dYdX, 0x, and Paraswap.
Due to the success of on-chain liquidity provision, WOO Network created an on-chain product to improve trade execution and capital efficiency in DeFi. Benefits of an open source DEFI protocol:
Users - perform better with their DeFi transactions and earn sustainable gains without the risk of permanent losses
DeFi Protocols – Dex aggregators, lending platforms and wallets can plug into WOOFi’s sPMM liquidity pool through a simple interface to get cheap liquidity and the best offers for trading and clearing
Crypto Projects - Efficient cross-chain liquidity without incentivizing excessive liquidity through huge inflationary token emissions
The main features of WOOFi are:
Swaps: The most capital efficient multi-chain decentralized exchange in DeFi, offering best execution and lowest swap fees. The sPMM liquidity pool provides an interface for other DeFi applications (such as aggregators) to plug in and obtain cheap liquidity.
Staking: Allows users to stake WOO tokens to earn swap fees from WOOFi and increase their earnings on WOO tokens
Token economy
The current total supply is 2,250,658,858 WOO, the current circulation volume is 1,754,634,237 WOO, and the circulation rate is 77%. The current currency price is US$0.18, and the peak in 2021 was US$1.786, so it has fallen by more than 90%. In terms of token distribution, the team takes 20% and liquidity management takes 5%, which means the team takes 25%, which is not a very high ratio. Then I looked at the TVL, which is not very high, less than 20 million US dollars.
Currently, WOO Network uses 50% of its revenue from exchanges, liquidity services, and asset management services for the monthly repurchase and destruction of WOO. A powerful token deflation mechanism is implemented by purchasing WOO from the secondary market, which will be permanently eliminated from the total circulation.
Finally, let’s summarize the project. This project still has certain innovations. It has changed from AMM to sPMM. The project also appeared when defi first emerged. At least it promoted the development of defi. Judging from TVL’s data, it is not It's ideal. The market value of tens of millions of dollars is currently seriously deviated from its own, so it is currently on the high side. Judging from the situation of DEX, it is also far behind dydx, gmx, etc. The top uni and crv are currently still An unshakable position. As for the specific token strategy, we still talk about the planet.