<p>This CMC exclusive article gives readers a peek into how zero-fee markets are possible. WOO X has been making a lot of headlines with its zero-fee model - and more recently, its new addition of Trade-to-Earn, with rebates on taker orders. All this innovation hasn’t gone unnoticed by other industry leaders - WOO Network raised $42M in its recent Series A and Series A&#43; fundraising rounds, led by Binance Labs, Crypto.com, and many other crypto powerhouses. For the average reader on CoinMarketCap, that inevitably leads to the question: How does WOO Network make any money on zero-fee trading?</p><h3 id="inefficiencies-with-traditional-exchanges">Inefficiencies with traditional exchanges</h3><p>It’s no secret that traders and retail crypto buyers have been getting the short end of the stick for years. Just look at the massive marketing spending - crypto exchanges are throwing money at everything from your local stadium to your favorite F1 car and even the Super Bowl.</p><p>In any transaction, there are a few parties:</p><ul><li>The user trying to make a trade</li><li>The platform, or broker, accepting the trade</li><li>The market maker (MM) who fills the other side</li><li>A second exchange, where a MM can hedge the trade and return to a market neutral position</li></ul><p>On a traditional exchange, each of those players have different interests, for example the platform charges a fee, the MM will add a spread, and the second exchange will also expect a fee from the MM. This is an inefficient model, made worse by the presence of toxic high-frequency trading (HFT) teams, whose automated trading strategies look to extract profit at the expense of the MM.  In response, MMs will widen their spreads even further, preserving their own profitability. Exchanges embrace the HFTs, whose large volumes result in a major source of fee revenue to exchanges and also look great from a marketing perspective.</p><p><strong>WOO X changes this paradigm in a number of ways:</strong></p><ul><li>Liquidity is integrated from other sources in CeFi and DeFi, eliminating the need for third-party profit-seeking market makers.</li><li>Toxic HFT traders are filtered out with API rate limits, allowing WOO X to maintain tighter spreads</li><li>WOO X serves as a broker for other exchanges, reducing hedging costs</li><li>Revenue from trading that would normally be generated and kept by the third-party market makers is shared between WOO X and the WOO token holders, via buybacks and burns</li></ul><p>In this way, WOO X has better aligned the incentives between all parties in a transaction and as a result can deliver better execution to users. Simply put, that means you keep more of what you earn while trading!</p><h3 id="it-doesn-t-stop-at-zero-fee-trading">It doesn’t stop at zero-fee trading</h3><p>WOO X is also making markets more efficient with Trade-to-Earn (T2E) - where WOO stakers on WOO X earn rebates on manual taker orders, by staking as little as 1800 WOO. Yes, you heard that right, you can get paid in WOO to trade. <br /><br />Better yet, this rebate system is not inflationary for the WOO token. WOO Network employs a monthly buyback and burn mechanism, where 50% of its revenue is used to buy WOO tokens back from the open market, and burn them forever. More taker orders mean more revenue, which leads to higher buybacks each month, making this a net-negative inflationary action.</p><p>To further offset inflation, WOO Network matches any T2E rebate given out and burns that directly from the Ecosystem Rewards pool. This creates a positive feedback loop where WOO X users are encouraged to trade more in order to earn more, leading to the network burning more, incentivizing more users to stake, and thus, continuing the cycle.</p><h3 id="strong-democratizing-access-to-markets-strong"><strong>Democratizing access to markets</strong></h3><p>WOO Network’s key goal is to democratize access to efficient markets, affordably. We are doing away with the failed era of high fee trading, so anyone from institutions to yourself, a CoinMarketCap reader, can buy and trade more of the coins you love, whilst keeping more of what you earn.</p><p>Sounds too good to be true? Someone has to lose in all this, right? Well, simply put, exchanges that depend on high fees are definitely at a disadvantage, alongside high-frequency trading teams that run aggressive taker strategies. WOO Network’s unique and unreplicable liquidity integration strategy means all the power goes to you, a humble crypto enjoyer. <br /><br />Try WOO X today and start experiencing what trading crypto should be like. Also, follow us on CrypTown to ensure you get the latest announcements and original content only for CoinMarketCap readers.</p>

How does WOO X make money with ZERO-FEE trading for both spot and futures?

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