Why $WOO?
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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:
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).
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.
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.
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.
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.
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.
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…)
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.
WooFi Swap DEX
$WOO
WOO Network @WOOnetwork
WoonieXBT breaks it down nicely.
So $WOO just launched a DEX which bridges liquidity from multiple CEXes, allowing it to trade at similar depth and slippage
Oh, and it will be multi-chain...
WOO Network @WOOnetwork
So, what’s the bull case for $WOO the token? It doesn’t really get more bullish than this Chart Simpson thesis.
I invest in early stage projects and hold for 6-18 months (barring any macro market shift down).
Yes $WOO is targeting DeFi volume, but when Amazon started they targeted books. At scale, $WOO will consume deep liquidity through CEX’s and Dark Pools.
Long tail thesis.
Chart Simpson 🔺🆙 @ChartSimpson
The elevator pitch for Woo Network’s suite of products courtesy of PandaXBT:
WOO X - A CEX
WOOTRADE - A gateway for institutional clients
WOOFI Swap - A DEX
$WOO is building a cross-chain network eating up the whole CeDeFi.
Best in class liquidity, slippage & fees.
'EMPOWER INDIVIDUALS'
What do they have common?
'ONE-STOP SOLUTION FOR LIQUIDITY'
$WOO price comparisons with other defi and cefi platforms.
I'm sure people are sick of seeing $WOO MC price comparisons but let's think bigger than just these individually compared, let's think combined and then compare Woo Network and it's products as the one stop shop of all trades, swaps and liquidity
$WOO is criminally undervalued!
It’s hard to argue with the fundamentals, and the chart is also looking primed.
Pentoshi recently moved to WOO’s trading platform and he’s a long term holder.
$WOO update
Glory awaits, have never once sold a token. Another one that I feel comfortable with. Some things I trade, some things I hold. So far so good! Hoping they continue to grow at this speed
Pentoshi Won’t Dm You. hates Dm’s. DM's are scams @Pentosh1
$WOO: This is a long term hold for me, I'm not doing a whole lot with this coin. Tbh, the overall chart looks really good and I don't know how big of a pull back $1.40 will be. I'll likely just hold. #WOO
$WOO could be that Q4 gem you are looking for… Let us know in the comments what you think.
And that’s your alpha.