What is Woo Network? (Explanation, Consensus, WOO Tokenomics)

Are you ready to dive into the world of Woo Network, where centralized and decentralized exchanges unite to offer you unprecedented opportunities in crypto trading?

Let’s begin!

Woo Network (WOO) – Bridging Centralized and Decentralized Exchanges

The Woo Network, also known by the market ticker WOO, offers both a centralized and decentralized exchange that specializes in arbitrage and high-frequency trading.

The Woo Network looks to bridge the gap between centralized and decentralized exchanges by offering a centralized exchange experience to decentralized users.

More specifically, it aims to provide centralized exchange levels of liquidity to its decentralized exchange. This enables DeFi traders to maximize their profits through the lowest swap fee and minimal slippage.

That said, it also brings a centralized exchange as well.

One which focuses on high liquidity, low fees, and providing you with all the trading tools to make the most efficient trades possible.

So, what exactly is Woo Network?

Woo Network (WOO): Unveiling WOO X and WOOFi – A Comprehensive Overview

The Woo Network was founded by Kronos Research in 2019.

Kronos Research is a Taipei-based cryptocurrency trading, market maker, and venture investment firm that was formed in 2018 by Jack and Mark.

The Woo Network offers a range of centralized and decentralized services but is composed of two main parts, WOO X and WOOFi.

WOO X is the centralized exchange providing high liquidity with a powerful user interface allowing you to get deeper into the technical analytics.

WOO X is the flagship centralized product built on Woo Network.

It comes with a live transparency dashboard, showing real-time proof of reserves and liabilities, giving the user more control over their risk and responsibilities.

WOO X also features an analytics dashboard that lets users compare the cost of trading on any of the major centralized exchanges, such as Binance or Coinbase.

Then, on the other hand, we have WOOFi, the Woo Network’s decentralized exchange.

To be more specific, WOOFi is a multi-chain decentralized application that focuses on these main components.

First is cross-chain functionality, which allows users to move major assets quickly and seamlessly across 10 supported chains.

This includes the likes of Ethereum, Arbitrum, Polygon, Avalanche, Fantom, and more.

Second is a high revenue share, offering up to 80% of all swap fees for those who stake their WOO tokens to support and strengthen the network.

Third, by lending your assets to WOOFi’s liquidity manager, you can also earn additional yields.

Lastly, through trading perpetual futures with an order book, WOOFi users can enjoy the CeFi trading experience while maintaining self-custody of their assets.

But this leads us to the question, how does it all work?

Exploring WOO X and WOOFi: Crypto Exchange Innovations and Decentralized Finance Insights

Let’s start with WOO X.

WOO X, the centralized crypto exchange, was launched in 2021 and was the first crypto exchange to use Payment For Order Flow, or PFOF, a compensation model that rewards brokers for forwarding orders to different market participants for trade execution.

This clears the orders quicker and provides a faster, higher-quality experience to the end user. This is especially important to the institutional investors that Woo Network looks to cater to.

This is also where Wootrade comes in, the WOO X’s “dark pool” trading platform for institutional clients.

“Dark Pool” just means not public, and allows for institutional investors to invest without immediately revealing their strategy to their competitors or the public.

To make sure it can always serve these high-value clients, WOO X ensures its high liquidity by participating with multiple market makers, such as their parent company, Kronos Research, when funds are required.

Alternatively, when we look at WOOFi, the decentralized exchange, we can see it is a Proof-of-Stake based platform that uses a Synthetic Proactive Market Maker, or SPMM, algorithm model.

But what does this mean?

Proof-of-Stake is a competitor to Bitcoin’s more famous, Proof-of-Work consensus mechanism.

The main difference is instead of making all network participants compete to solve a complex mathematical puzzle to validate a block of transactions and add it to the blockchain, under Proof-of-Stake a validator and some verifiers are selected semi-randomly based on how much they have staked, meaning deposited, to the system.

The benefits are it is much more scalable than Proof-of-Work, which is something essential for a platform like Woo Network that looks to serve those who rely on multiple orders being delivered immediately.

Next, a Synthetic Proactive Market Maker, or SPMM, is a decentralized finance protocol that automates market-making on a blockchain, similar to regular Automated Market Makers, or AMMs. Now, Automated Market Makes is a complex topic in the cryptocurrency space which I will cover in a future video so definitely subscribe to see that.

The “proactive” aspect refers to its ability to dynamically adjust the liquidity pool’s asset ratios based on market conditions, which helps maintain stable prices and minimize slippage for traders.

What makes WOO Network unique?

WOO Network’s Uniqueness: A Bridge Between Centralized and Decentralized Exchanges

Bridging the gap between centralized and decentralized exchanges, at least in terms of user experience, is the unique selling point of this network.

Although, its unique selling feature is its clever way of ensuring liquidity, which is achieved by aggregating market depth from larger exchanges and setting up an open liquidity pool with participation from multiple market makers, including its parent company, Kronos Research.

By utilizing the reserves of larger companies, Woo Network can more reliably ensure their orders will always be met.

WOO Tokenomics

The native token of the Woo Network is the WOO token, and launched with a total supply of 3 billion tokens.

WOO is a BEP-20 token, which is a form of token standardization blueprint that ensures compatibility with the Binance Smart Chain. Similar to Ethereum and the ERC-20 tokens I have talked about previously.

Of that 3 billion total, around 25% have been burned, meaning destroyed.

Of the 2.2 billion remaining, around 77% is in circulation.

This 77% is split 50% between the active circulation, and 27% stored away as ecosystem rewards.

Of the other 23% not in active circulation, 9% will be distributed to the team and advisors, 2% will be released to Series A investors, and 12% towards future teams and investors.

Woo Network’s Ambitious Vision: Catering to High-Value Traders with Versatile Options

Woo Network is thinking big. It wants high-value clients who make lots of moves in the marketplace.

To achieve that, it offers them everything it can to make their platform more appealing.

Want a centralized exchange, with pro-level analytical tools, and with all the protections that come with centralized regulations? Woo Network can offer you that.

Prefer a decentralized marketplace with low fees and deep pockets, where you can still control your assets personally? Woo has got you there too.

By offering low fees and promising high liquidity, it seems likely that when the crypto markets heat again a platform like Woo Network will see an increase in activity and interest.

Though, as always, nothing is ever guaranteed in crypto, of course.

Woo Network FAQ