WOO Network

What is WOO Network (WOO)?

WOO Network connects traders, exchanges, institutions, and decentralized finance (DeFI) platforms to create a liquidity network. Better yet, this network allows democratized access to best-in-class liquidity, trading execution, and yield generation strategies at low or even zero cost.

API integration provides a route for exchanges to access the WOO Network, allowing exchanges to upgrade their order book depth and tighten spreads to better compete with market leaders.

WOO Network also allows partner exchanges to hedge on WOO X, the project’s flagship CeFi product, featuring first-to-market zero-fee trading, deep liquidity, and fully customizable workspaces.

However, WOO also has product offerings focused on the decentralized end of the business. WOOFi is a multi-chain decentralized app that bridges CeFi liquidity into DeFi, while the WOOFi DEX is an on-chain order book exchange featuring self-custodial trading.

When was WOO Network Launched?

The WOO Network went live on October 30, 2020, having been incubated the previous year by Kronos Research. Kronos is a trading firm that focuses on market making, arbitrage, and high-frequency trading (HFT) and accounts for billions in daily trading on top crypto exchange platforms.

How Does WOO Network Work?

WOO Network is unique in that it brings together multiple service offerings that make up a very attractive product suite for professional traders.

WOO’s flagship product is WOO X, which can be considered a centralized finance offering. It provides a professional trading experience, including zero-fee trades when 1800 WOO tokens are staked on the platform. Daily free withdrawals and increased referral rebates are the icing on the cake, with traders lured in by significant market depth and a customizable GUI.

Then there’s WOOFi, a decentralized exchange platform that’s unique because it offers price execution that’s normally found on centralized platforms. It can also run cross-chain swaps with a single click and consists of a yield optimizer and staking.

How is the WOO Network Network Secured?

The WOO token’s main contract is on Ethereum, but it also exists on multiple blockchains via bridges. As a result, the main blockchain responsible for WOO Network’s security is Ethereum.

Perhaps even more importantly, the project’s security is very beholden to the quality of its code. This code, including smart contract code, has been audited by third-party firms. There is also a bug bounty program, rewarding white hats with up to $10,000 for discovering vulnerabilities.

What is the Use of WOO?

WOO is the utility token of the WOO Network and can be staked on WOO X and WOOFi for various benefits, including lowered trading fees. Tokens from WOO Ventures’ early-stage project investments will also be partly distributed to WOO token stakers on the WOO X platform.

50% of revenue generated across WOO Network’s services contributes to the monthly buyback and burn program, with WOO purchased on the secondary market and permanently removed from the circulating supply.

The WOO token also plays a role in governance, with 1800 being the magic number. Stakers of at least 1800 tokens on WOO X, holders of 1800 WOO on Ethereum, BSC, Avalanche, or Polygon, and stakers of 1800 WOO in WOOFi Stake are all given the “voter” role in the WOO DAO.

Going forward, the WOO Network team intends to increase the utility of the WOO token even further. Some of the planned use cases include access to social trading, as well as access and discounts for institutional yield strategies.

Who Controls WOO Network?

WOO Network is controlled by its founding firm, Kronos Research, which has consistently been the top market maker on platforms like dYdX, ParaSwap, and DODO. According to the company’s website, projects invested by Kronos Research will receive priority access to listing on WOO Network.

Kronos lists various projects in its public portfolio, including Starkware, Hashflow, CowSwap, Avocado, Aurora, StripsFinance, XMargin, and BitDAO.

However, WOO Network has a stated goal of being a decentralized ecosystem governed by its community members. This will be executed via WOO DAO, which currently exists in the form of a company with a large balance sheet made up of individual contributors.

The WOO DAO is split into four working groups, namely Operations, Treasury management, Business development, and Growth. A total of 10% of the total WOO supply has been allocated to WOO DAO and is stored in “woodao.eth,” a gnosis multi-sig wallet. This wallet is governed by an internal 7-member governance council. The WOO DAO treasury also has accounts on Binance Smart Chain, Avalanche C-Chain, and NEAR. The treasury tokens are included in the circulating supply but cannot be accessed or transferred without a majority of on-chain signatures from key holders and an approved proposal from WOO holders.

How Much WOO is In Circulation?

WOO has a capped supply of 3 billion tokens, but it can be considered deflationary thanks to its buyback and burn program.

10% of the WOO supply was sold in private and public sales, and a further 10% went to institutional investors. All of these tokens are unlocked and in circulation. 20% of the supply was given to the WOO Network team, and a further 5% went to project advisors. These allocations are part of a 3.5-year vesting schedule.

25% of the token supply has been set aside as ecosystem rewards, while 10% each went to an insurance fund to back user assets and to ecosystem partners for rewards. 5% of the WOO supply went to WOO Ventures to invest in early-stage projects, with benefits going to WOO holders.

How Do You Buy WOO?

You can buy WOO on various platforms, both centralized and decentralized. Several top-tier cryptocurrency exchanges have already listed WOO, despite the relative youth of the project.

How Do You Store WOO?

You can store your WOO tokens in a wallet corresponding to the blockchain you own them on. Metamask is a versatile option that can be configured for several networks, and multi-asset wallets like Trust Wallet can also store WOO.

Is WOO a Good Investment?

According to its own literature, WOO Network is specialized for serious traders and investors and provides valuable services for smaller exchange platforms and enterprise clients.

However, whether WOO offers anything novel to the individual so-called retail investor is questionable. Liquidity and spreads aren’t a terrible concern when executing buy-and-hold or DCA (Dollar Cost Averaging) strategies.

Furthermore, the project is incubated and backed by an HFT firm. While it isn’t always wise to make generalizations, hedge funds and trading firms have left a black mark on the blockchain that may never disappear, such as in the cases of Alameda Research and Three Arrows Capital. While the project is intended to decentralize, the WOO DAO currently exists as a Discord server, so there’s a long way to go.