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Overview

fi.woo.org

Background

Decentralized exchanges (DEXes) have experienced rapid growth since 2020, with DEX monthly volume exceeding $162 billion in May 2021. Instead of order books, most DEXes have adopted the automated market maker (AMM) design to bootstrap passive and algorithmic liquidity into liquidity pools. With this approach, liquidity takers can trade against the AMM with any size. To compensate liquidity providers (LPs) for impermanent loss, traders typically pay a fixed fee up to 0.3% distributed proportionally to the amount of liquidity provided by each LP. The trading fee, coupled with gas fees that vary across networks, makes the cost of trading on DEXes much higher than centralized exchanges (CEXes). In contrast, CEXes typically charge no more than 0.1% fee and can be even lower with rebates.
The Block
Uniswap v3 enables “concentrated liquidity”, which allows LPs to concentrate their capital into narrower price ranges. This approach results in higher capital efficiency since liquidity is not provided far away from current prices. With concentrated liquidity, LPs need to actively manage their liquidity positions in response to price fluctuations. Failure to do this may result in sharper impermanent loss and less fees earned as price goes "out of range".
The Proactive Market Making (PMM) algorithm, first introduced by DODO, is another approach proven to be highly performant and capital-efficient via its on-chain generation of the order book. In addition, DODO allows professional market makers to create private liquidity pools with more controls over the quoting to further enhance capital efficiency.
We expect DeFi to gradually compete with centralized exchanges as it becomes more mature and efficient, in terms of trading volume, liquidity and transaction cost. So in October 2021, WOO Network launched its own decentralized exchange platform featuring sPMM (Synthetic Proactive Market Making).

Introducing WOOFi

WOOFi is a decentralized exchange featuring the best single sided passive yields on major assets and most robust cross-chain swaps powered by the highly efficient sPMM bridging the CeFi and DeFi liquidity.
Deployed across almost all major blockchains, WOOFi has processed over $2.5 billion in trading volume and become a sticky name in Top 20 dex volume leaderboard according to DeFiLlama. WOOFi consists of four key modules:

Swap

A multi-chain decentralized exchange with the highest capital efficiency in DeFi, providing users with high-quality trade execution and the lowest swap fees. The sPMM liquidity pool provides interfaces for other DeFi applications, such as aggregators, to plug in and get cheap liquidity.
Earn
A DeFi yield optimizer provides the hassle-free experience of earning in DeFi with "set-and-forget" type of vaults. Supercharger earn vaults combine the auto-compounding yield farming with liquidity provision in WOOFi Swap to maximize the capital efficiency.
Stake
Allow users to stake WOO tokens to capture the fee from WOOFi Swap and Earn and increase their yield on WOO token.
WOOFi DEX (BETA) is an orderbook style decentralized exchange that is built on top of Orderly Network's trading infrastructure and the NEAR blockchain.

More Information

  • Join our Discord to engage with the community and share your feedback
  • Check the developer docs for integration
  • Report any bugs through the Bug Bounty programs
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