Wootrade Network - A trading platform that will make you go Woo...
$WOO Project Review
Product first, token second has been an excellent guide in crypto, most products when launching release a whitepaper laying out the roadmap, functionality and value of their token. It is important to realise that a whitepaper is simply a written down and planned out idea and that actual implementation of the functionality and protocols is the hard part.
At its essence, a cryptocurrency accrues value for the protocols which it has implemented and not those which it has planned.
The project in question is Wootrade (WOO) which is being developed by Kronos research. Kronos Research is one of the top market makers and quantitative trading firms in the world processing $45 billion in trading volume per month.
What is Wootrade ?
Wootrade is a liquidity darkpool that is an exchange and institutions can use it for access to deep order books and liquidity. Darkpool, refers to a liquidity pool in which all transactions carried out are hidden. Professional trading teams can link their own trading dashboards via API or use Wootrades’ customisable trading dashboard. The customisable trading dashboard is also an advanced retail platform, WOO X, where any user can take advantage of the professional trading tools and zero fees available.
Unlike traditional exchanges, users are not charged fees for making transactions and using Wootrade services. It’s free to use for the end-user.
The WOO Token
WOO is a ERC-20 token used to acquire benefits, investment opportunities, discounts and rebates on the Wootrade network. It is traded on multiple major exchanges (Huobi, gate.io, Dodo, Uniswap and others).
WOO is a capped-supply token with a total supply of 3 billion tokens. WOO tokens are bought back and burned each month with 50% of the revenue from Wootrade. In the five months which buybacks have occured 7.7m WOO tokens have been burned. The WOO token distribution is shown below:
Wootrade began to scale in 2020 when institutions realized the benefits of deep order books and zero-fee transactions. The network currently executes trades of 20+ institutional clients. Wootrade is not able to disclose details of institutional clients’ trading volume. This situation isn’t unique to Wootrade as other institutional-facing platforms don’t even reveal the names of their clients. Early DeFi protocols were hampered by high fees and slippage. Wootrade was uniquely positioned to take advantage of this with their deep liquidity and in house market makers.
WOO for the user
WOO X launched in Beta at the end of March 2021, allowing anyone who staked WOO to access over 30 assets with deep liquidity and zero-fee trading. Only around 700 users have registered, with about a third of those using the platform for trading. Trading volume fluctuates between $5 million to $35 million per day. As WOO X Beta grows, and its user base expands trading volume is also expected to grow.
On 25th June 2021, WOO X Beta will move to the next phase. The WOO X team will no longer be the limiting factor on who signs up and trades. Early WOO stakers on WOO X Beta will be able to give out referral codes.
End of July, WOO X will fully open up, even to users without an invite code. That includes the Beta version of the WOO X Mobile app. WOO X Futures is also targeting a July or August release.
Product release dates and upcoming milestones
Open Betalaunch – June 25th
Includes updated staking program with trading incentives and initial referral program for WOO X Beta stakers
Open Betawill have a pure spot mode for non-leveraged trading
Open Beta will have support for API trading
WOO X Mobile Beta – end of July
WOO X Futures – late July or August
Social trading – Q4 2021
The investment thesis
The Wootrade network is showing rapid growth with ever growing institutional volume, with 8.45 billion USDC volume in May. The rapid listing of new tokens also helped facilitate an increase in volume. 128 million USDC of DOGE was traded on May 4, 2021, a few weeks after being listed on the network. Due to the superior pricing execution offered by Wootrade smart order routers such as DODO and 1inch used the WooFi pools with increasing frequency. The 5 BSC WooFi pools with about $3.7m in total value locked transacted over $890 million in trading volume, with fees of only ~0.05% per transaction.
There is also a large network effect in place. As the network grows in size, it becomes more attractive to higher capital users due to the diversity of flow and amount of liquidity available along with the trust that is established. This opens up even more markets for the Wootrade network to scale into over time. The current network is shown below.
Wootrade offers a liquidity platform that can seamlessly and quickly be integrated with most blockchains and their protocols. WOO has recently announced integration with Algorand, Polygon, plans for Solana.
The success and value of WOO ultimately hinges on the performance of Kronos Research. With a proven track record and functioning protocol with astounding liquidity numbers, they are in an excellent position for future success.
I can see this being a top tier project, therefore a top 50 ranking would not surprise me at all. I do not want to give random price estimates but I personally see a massive upside potential.
(If you would like a WOO referral code to start trading on their platform, comment on the post and I will pick 5 people at random)
Sounds great. Would love an invite to check this out.
Great analysis man, appreciated. After i read, i believe woo more. Thanks