This is the proposal to add xWOO as collateral on BSC to borrow MiM. xWOO is the interest-bearing token in WOOFi, a sPMM decentralized exchange launched by WOO Network. xWOO continuously earns yields from the swap fee in WOOFi. Currently, ~$35M WOO is staked as xWOO in WOOFi yielding around 7% in 7-day average APR. And there are ~5,000 xWOO holders and 7,700 WOO holders on BSC.
WOO Network is a deep liquidity network connecting traders, exchanges, institutions, and DeFi platforms with democratized access to the best-in-class liquidity, trading execution, and yield generation strategies at lower to zero cost. WOO Network was incubated by Kronos Research, a multi-strategy trading firm that specializes in high-frequency trading (HFT), arbitrage, and CTA, averaging around $5-10 billion of daily trading volume on global cryptocurrency exchanges. WOO Network also received strategic investment from Binance Labs and Three Arrow Capital in its recent Series A round.
WOO Network processes $500M - 1B volume across CeFi and DeFi on average per day, of which $20 - 50M is from a combination of market-making and trading strategies on BSC. With the launch of our flagship DEX WOOFi, we are committed to boosting the volume of WOOFi.
WOOFi was featured in BSC’s MVBIII monthly stars for September. And its novel sPMM and on-chain market data feed allow WOOFi to provide competitive pricing with a fraction of TVL compared to AMMs, as a result, WOOFi can achieve over 300% capital efficiency and the swap fee is only 0.025% - the lowest across all DEXes. 0.02% of each transaction on WOOFi is used to buy back WOO and reward xWOO holders on a daily basis.
In addition, the recently launched WOO DAO, with its passionate DAO members and $300M WOO in its treasury, is dedicated to supporting WOO Network’s growth in DeFi and landing mutual beneficial partnerships.
Allow xWOO to be used as collateral on BSC to borrow MiM. The specifications are similar as CAKE but with a lower collateral ratio, considering WOOFi is a newer protocol. (Max collateral ratio: 60%, liquidation fee 12.5%, borrow fee 0.5%, interest 2%)
- Attract more users to Abracadabra on BSC, diversify risks for depositors and MiM holders
- Increase TVL of Abracadabra on BSC
- WOO Network supported $SPELL in October, we can prioritize the support for SPELL in our DeFi market-making and trading strategies
- WOO DAO potentially borrows MiM with xWOO and hold MiM and Spell in its treasury
- $40M traded on WOOFi since the alpha launch in Nov, ~$35M WOO token staked in WOOFI as xWOO
- There is a 7-day unstaking period to withdraw WOO from the staking contract without paying any penalty (5% for early withdrawal).
- While WOOFi is bootstrapping its volume, additional WOO token rewards will be committed to ensuring the APY is higher than the borrowing interests
- WOOFi’s smart contracts have been audited by multiple audit firms such as Certik and Verilog
Web app: https://fi.woo.org
WOO DAO Discord: https://discord.gg/woonetwork