High liquidity, low trading fees, and superior trade executions for a wide variety of cryptocurrencies and tokens – that’s the package that WOO Network promises for its rapidly expanding global user base.
In case you’re not familiar with it yet, WOO Network, formerly Wootrade, is a dark pool trading platform. The platform aims to solve two of the main pain points (among other problems) that negatively affect cryptocurrency traders around the world: fragmented liquidity and high spreads.
In this review today, we’re going to take a quick look at the WOO Network, the surrounding ecosystem, and the benefits it claims to bring to crypto traders. Let’s start with an overview of the platform.
WOO Network: General Description
Backed by Kronos Research
WOO Network began its journey in the crypto space in June 2019 under the Wootrade brand. It was founded by the team behind Kronos Research, a leading multi-strategy quantitative trading firm with an average of up to $ 10 billion in daily trading volume on global cryptocurrency exchanges. Kronos is also a Designated Market Maker (DMM) for major exchanges including Binance, Okex, and Huobi among others.
In that sense, credibility is not an issue for the WOO community as it is backed by a well established entity with a proven track record.
Furthermore, WOO Network also showed enough potential from its early days to attract funds from global investors such as Fenbushi Capital, Hashkey Capital, SNZ & DFund.
The weak points that WOO Network aims to solve
Despite all its growth over the last decade, the crypto market has yet to shake off the high degree of internal fragmentation. Even today, each individual exchange serves as independent silos in which users of an exchange can only trade with other users on that platform.
In fact, the fragmentation is so high that even the largest exchanges, such as Binance or Coinbase, control a relatively small part of the total market.
Because of this, liquidity is often limited to a single exchange at a time, much like price discovery. In a classic case of a feedback loop, this fragmentation is also hampering the ability of individual exchanges to attract professional market makers, which in turn, further limits their liquidity.
WOO Network aims to resolve these pain points by implementing a unique combination of strategy and resources that we will discuss later in this review.
Best in class liquidity
As a platform, WOO Network aims to bridge the gap between exchanges, traders, institutions, and DeFi platforms with best-in-class liquidity. With very thin margins and zero trading fees, the platform provides an alternative trading system that allows traders to interact privately.
Among other benefits, this configuration is prepared to radically improve liquidity and prices of digital assets for cryptocurrency exchanges.
WOO Network achieves this goal by allowing exchanges to outsource the market-making function to Wootrade Alternative Trading System (WATS). In this way, these exchanges receive a fully functional order book, which then frees up their resources to focus on key business goals, such as building a central user base.
The platform uses the pay per order flow (PFOF) model which involves a broker redirecting orders to multiple parties for faster and smoother trade execution.
WOO Network’s umbilical relationship with Kronos Research is a huge plus here. Kronos, with its trading volume worth billions of dollars each day, effectively serves as one of the largest contributors of liquidity to these smaller exchanges.
Now that you have a basic idea of how the WOO Network works, let’s move on to the next segment focusing on:
The WOO Network ecosystem
WOO Network consists of the following products that form the backbone of the Woo ecosystem:
WOO Network presents WOO X as a commission-free trading venue for retail traders with best-in-class liquidity and trade execution. Basically, it is CeFi’s flagship product that operates in the broader Woo ecosystem. It brings together some of the top market makers in the crypto space alongside formidable quantitative trading strategies and deep pools of liquidity.
Developed by Woo Dark Pools, WOO X offers spot, margin and futures trading
The team that oversees WOO X seems to have done a good job of making it accessible to traders of various profiles, including retail, professional, and institutional traders. You can easily customize your dashboard with tools and widgets of your choice, giving you an edge over any comparable terminal.
The WOO token is the native asset of the WOO network. It is an ERC-20 utility token that unites the various components of the WOO Network’s DeFi and CeFi products and services. The platform has allocated 50% of its income generated throughout its ecosystem to the buyback and burning of the token. WOO Network claims to have planned these deflationary measures meticulously to ensure constant demand for the WOO token.
The WOO token has the following utilities:
- Retail staking that users can leverage to unlock fee-free trades, higher referral refunds, and free withdrawals.
- Institutional Staking that allows institutional traders to benefit from increased API trading rate limits and a lower fee structure.
- The WOO token can also be used to pay for the wealth management and heavily discounted margin fee.
- Token airdrops from WOO Ventures early stage projects are distributed proportionally among WOO token stakers on WOO X. (more on WOO Ventures in the next segment).
- The WOO token also brings with it liquidity supply and yield farming opportunities. The token is embedded in multi-chain decentralized exchanges (including Uniswap, Bancor, QuickSwap, Sushiswap, and others).
- You can also use the WOO token to lend and borrow from CREAM Finance, Sushi Kashi, Rari Capital, KINE Finance, and Unit Protocol
WOO Network also plans to extend the usefulness of the WOO token in other use cases, such as granting users access to social trading and voting rights on the progressively decentralized WOO network.
You can buy and trade WOO tokens on major exchanges including Huobi Global, AscendEX, Uniswap, Sushiswap, MXC, and Gate.io, among others.
WOO Ventures is an integrated program within the WOO ecosystem that democratizes investment opportunities in early stage crypto projects.
Without delving into the technique, this product works in much the same way that venture capital firms spot and invest in startups. As these crypto projects grow over time, they provide various economic advantages and incentives for the WOO Network community.
This is also a win-win arrangement for new projects as it could provide you with a dynamic user base from the WOO Network community. Meanwhile, WOO token holders can stack their tokens for airdrops and other benefits from these early stage projects.
One of the main goals of the WOO Network is to continue expanding its liquidity network to the DeFi space. The idea here is to make room for DeFi users to benefit from competitive pricing, tight bid and ask margins, and performance opportunities. Therefore, the team overseeing the project has grouped all its DeFi-related products under the umbrella term WOOFi.
The first WOOFi product was the on-chain liquidity pools, designed to facilitate optimal execution of trades for DeFi users. The platform is also reportedly testing its on-chain trading strategies on V3, 0x, dYdX, and Uniswap.
Overall, Woo Network is in fact a fairly vast and comprehensive product ecosystem that, taken together, promises to alleviate some of the lingering pain points faced by cryptocurrency traders in general.
If it lives up to its potential, the platform can fix the problem of fragmented liquidity across the industry while at the same time extending the benefit of a low or zero fee structure to retail, professional and institutional traders.
It could also mitigate the risks of bogus trading volumes posted by exchanges while giving users the opportunity to invest in promising projects in the early stages.
With that said, these are still the early days of the platform and BeInCrypto will make sure to keep a close eye on it as it expands and matures over time. In the meantime, visit their official website and check the project’s litepaper for more information.
All information on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at your own risk.