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An introduction to the WOO token - utility and tokenomics

Table of Contents

Announcements / Trading / DeFi

An introduction to the WOO token - utility and tokenomics

WOO Network

By WOO Network

3 months ago
6 mins read
An introduction to the WOO token - utility and tokenomics

Table of Contents

The WOO token is central to the WOO Network ecosystem, boasting copious amounts of utility across both CeFi and DeFi. If you're new to WOO, this article will dive into a bit of background about WOO Network, and then will dive into everything you need to know about the WOO token.

Okay so first off…. what is WOO Network?

WOO Network is a deep liquidity network connecting traders, exchanges, institutions, and DeFi platforms. It provides democratized access to market liquidity, trading execution, and yield generation strategies at lower or even zero cost. WOO Network was incubated by Kronos Research in 2019, a quantitative trading firm that has long been a leading market maker across all major exchanges, generating $5-10 billion in daily volume.There are multiple arms to WOO, and it has a suite of services ranging across both centralized and decentralized platforms. This includes:

WOO X - A Centralized exchange which provides zero-fee trading by staking just 1800 WOO, rebates on taker orders (Trade-to-Earn), customizable workspaces, advanced order tools, and the deepest liquidity in the space.
WOOFi - Decentralized exchange that uses a unique Synthetic Proactive Market Making model which provides the best way to simulate a CEX like order book into typical DeFi liquidity pools. This helps WOOFi achieve more capital efficiency and enables lower swap fees. The platform also allows you an all-in-one place to swap, earn, and stake. Users can stake their WOO tokens to capture fee revenue from the platform or use vaults for a variety of different assets. If you’d like to read more about WOOFi we encourage you to check out the docs here.
WOO DAO - The DAO’s purpose at its core is to further decentralized community governance.. Ultimately, this is where all the DeFi business development related activities happen. Here is a nice outline on the general activities that stem from the DAO.
WOO Ventures -  The investment arm of WOO Network, which seeks to form strategic partnerships with projects and ecosystems. 50% of the returns from all investments are distributed back to WOO token holders.

Let’s get to why you’re here - The WOO Token

WOO is central to the WOO Network ecosystem, and the utility is embedded in both the CeFi and DeFi products listed above - serving as the unifying force for all DeFi and Cefi products and services provided. This includes:

  • Staking on WOO X - Earn yield, reduce trading fees, unlock zero-fee trading, unlock rebates on taker orders (trade-to-earn), unlock daily free withdrawals, and increase referral rebates
  • Staking on WOOFi - WOO can be staked on WOOFi to earn yields from the fees of swap and earn
  • Governance utilities - WOO token holders, WOO X stakers, and WOOFi stakers can participate in the decentralized governance by voting on proposals. You can also attend weekly meetings where we have industry-leading guests on, and core contributors are rewarded based on their efforts. You can see how we recently rewarded those core contributors in our DAO incentive program here
  • Various yield farming opportunities - You’ll find the WOO token on various blockchains, on platforms like Uniswap, Bancor, Pancakeswap, Quickswap, Spookyswap, and more.
  • Borrowing and lending - Currently WOO can be used on Sushi Kashi and Rari Capital. Expect more to come from this angle as we further embed our relationships across all ecosystems.

Currently, 50% of the revenue generated across the network’s services contribute to the monthly buyback and burn, by purchasing WOO tokens from the secondary market to remove them permanently from the circulating supply. In addition, this buyback is then matched with a monthly burn from the Ecosystem Reward pool for the WOO token, which lowers the maximum supply and decreases its fully diluted value (FDV).

More WOO utility will be released in future updates of WOO X and WOOFi, and other WOO products. To contribute to growing the utility for the WOO token, community members can join the WOO DAO and help build new token use cases, partnerships, and designs.

WOO-Nomics

The WOO Network native token, WOO, has a cap set at 3,000,000,000 tokens. The WOO token achieves a deflationary tokenomics model through the buyback and burn program. As stated earlier, each month 50% of WOO Network’s revenue will be used to buy back WOO on the open market. Monthly rebates are also matched with a burn of WOO tokens from the Ecosystem (Rewards) pool, bringing down the WOO token’s FDV (Fully Diluted Valuation).  While the buyback is performed on an ongoing basis, the token burn happens on the 10th of each month and is published on our Twitter. Here is a depiction of the token allocations from the start. The full breakdown of all the tokenomics can be found here

50% of tokens for the WOO ecosystem have the following purposes:

  • 25% WOO ecosystem rewards, allocated to incentivize network usage
  • 10% Insurance fund, to back user assets on the network
  • 10% Ecosystem partners, to reward partners for supporting activities
  • 5% WOO Ventures, to invest in early-stage projects with benefits going to token holders
  • Each month, there is a burn of the Ecosystem Reward pool. The quantity of this burn is determined by:
  • A match-and-burn of rebates on taker orders for WOO X stakers (trade-to-earn)

The remaining 5% is for liquidity management. These tokens are occasionally used for market making purposes, but must all be returned to the wallet.

Where can I buy WOO?

CEX options: WOO X, Binance, Crypto.com, OKX, Huobi Global, AscendEx, KuCoin, Gate.IO, MEXC, Poloniex, Coinex, HOO, HitBTC

DEX options:

You can also choose to provide liquidity on all these different platforms if you choose. There are a wide range of options to pair your $WOO token with including: ETH, USDC, USDT, BNB, AVAX, FTM, NEAR, and more! We plan to continue to expand the options and different pools for $WOO holders as we expand further into the on-chain space.

Of course if you don’t want exposure to any impermanent loss, you can always just stake it on either their CEX or DEX

Where can I bridge?

The WOO token was initially a utility token on Ethereum, which now exists on multiple blockchains through bridges. Always check the official token contract addresses and the bridges

available as below. Key bridges we recommend would be:

Summary

In summary the WOO token is a fundamental part of the overall WOO Network ecosystem. It can be used on both their own centralized and decentralized trading platforms for zero-fee trading, staking + yield, governance, with even more to come! WOO network has already established itself as a top 10 exchange in the crypto space in a short period of time. As WOO Network’s liquidity continues growing in the DeFi and CeFi space, WOO token’s utility also expands. Its mix of a veteran team, support from industry leaders like Binance, and a suite of essential products have helped create its position in the industry today. To continue this growth, WOO Network also plans to expand its extensive list of products, features, and partnerships.

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