Available at: https://fi.woo.org/stake
WOO token holders can stake their WOO tokens in the WOOFi "stake" page to receive yield from the WOOFi swap fee. Users receive xWOO as the LP token in exchange for staking WOO in the WOOFi staking contract. The staked WOO can be redeemed with xWOO token following the unstaking period.
The staking page displays the:
- Total number of WOO staked in WOOFi on the corresponding chain
- The current value of xWOO, which represents how many underlying WOO token 1 xWOO is worth
- The average APR for WOO staking over the past seven days
- Your xWOO Balance, as well as the number of WOO staked according to your xWOO holding
While holding the xWOO token, users can auto-compound their yield earned from the fee collected in WOOFi Swap and Earn. When users make trades on the WOOFi swap, a 0.025% fee is charged, from which 0.02% is used to reward the xWOO holders and the other 0.005% is collected to incentivize volume in the future through programs such as rebates, referrals and trade mining.
When the VaultManager contract is called (minimum once per day) the accumulated swap fee (excluding the portion collected for future incentive programs) will be used to buy WOO on WOOFi. The newly purchased WOO is then divided up proportionally between all of the xWOO holders in the pool, meaning their xWOO is now worth more WOO. Because of the way the rewards are generated, the price of xWOO will increase with the value of WOO, and the value of one xWOO will always be greater than the value of one WOO.
To encourage long term staking, there is a 7-day unstaking period before the WOO token can be withdrawn and a 5% penalty for instant withdrawal before the unstaking period ends.
When users initiate unstaking by burning the xWOO token, the unstaking period starts. The WOO token in the process of unstaking can not receive rewards. At the end of the 7-day unstaking period, the staked WOO will be available for withdrawal.
If a user wants to withdraw the WOO before the unstaking period ends, a 5% penalty of your staked WOO will be charged and rewarded to the existing xWOO holders.