Why $WOO?

WOO Network releases their new DEX

Oct 27, 2021

Welcome to the fifth Alpha newsletter. We curate alpha for you. That’s it; that’s the newsletter.

You may have heard of WOO Network, you may have not. If not, here’s a bit of spiel:

WOO Network connects traders, exchanges, institutions, and DeFi platforms with democratized access to the best-in-class liquidity and trading execution at zero or low cost.

Today they announced the launch of their new DEX, which sounds rather revolutionary:

WOO Network @WOOnetwork

WOOFi Swap (fi.woo.org/#/) has just launched, and we’re getting many questions about how it all works - and what's to come. 👇A thread about our new sPMM algorithm, how we achieve best-in-class price execution, the lowest fees, and what to expect down the line (1/8).

WOO Network @WOOnetwork

2/ sPMM is the core algorithm powering WOOFi Swap, which is designed for professional MMs to provide on-chain liquidity in a way that simulates the order book of a CEX - allowing for the highest capital efficiency across all DEXs and lowering swap fees to 0.1% across all pairs.

WOO Network @WOOnetwork

3/ The other main innovation is the custom on-chain market data feed that works seamlessly with sPMM. In addition to price, it also takes into account spread and liquidity coefficients so that #DeFi users get trade execution on par with CEXs - without exchange custody risks.

WOO Network @WOOnetwork

4/ Instead of having an asset pool for each trading pair, WOOFi Swap uses a single pool design that holds and manages all assets including multiple base tokens and one quote token. This design further improves the volume-to-liquidity ratio and saves on gas fees for users.

WOO Network @WOOnetwork

5/ While WOOFi Swap can offer better trade execution most of the time, AMM may temporarily offer better prices when the price is imbalanced on-chain and off-chain. This means WOOFi Swap can provide a better price on the other side of the trade, offering arbitrage opportunities.

WOO Network @WOOnetwork

6/ WOOFi Swap is still in Alpha, so the liquidity and number of assets available are limited. WOOFi swap should be able to accommodate most of your trade needs, except for very large orders. If your order is larger than the pool, your trade may be routed to DODO.

WOO Network @WOOnetwork

7/ The focus of the Alpha launch will be on optimizing the user experience, stability, and performance, as well as adding more sources of order flows through aggregator integration. We welcome all feedback, and we also have a bug bounty program available (learn.woo.org/woofi/woofi-sw…)Bug Bounty (Alpha Launch) - WOO Networklearn.woo.org

WOO Network @WOOnetwork

8/ Long term, WOOFi Swap will be expanded to more blockchain networks and support more assets. We will also be looking to add utilities for the $WOO token and yield opportunities for users. Eventually, with WOO X and WOOFi, we want to be the one-stop solution for liquidity.

Zhu, of Three Arrows Capital, has no clear opinion here, but we’ll take his tweet as confirmation that this WOOFi Swap is something people should take note of.