Understanding Wootrade: Quarter Four, 2020

Understanding Wootrade: Quarter Four, 2020

To provide more transparency to our community and investors, Wootrade has prepared the first quarterly report, sharing insights on the different areas of development for the trading platform.

Key figures:

  • $11.3 million in average daily volume, up 253% from Q3
  • Daily high of $73 million, up from $6.7 million in Q3
  • 14 institutional clients, including BitMax, Gate.io, and MXC
  • Market cap of $6.5 million, with a circulating supply of 248.8 million tokens available on 15 global exchanges

*All statistics in this report are accurate as of January 8, 2021.

Introduction letter from the team:

Dear friends, supporters, and investors,

First and foremost, thank you for your interest and support in 2020. Last year saw unprecedented improvements in the DeFi space, convincing more and more token holders to become active digital asset users, whether through staking, governance, or some other yield-earning mechanism. As a result of this, trade volumes have increased and traders have demanded more advanced tools to maximize their capital. This is a massive opportunity for Wootrade to leverage our liquidity and market-making expertise in new scenarios, something we are now exploring both internally and with our large network of talented partners.

Looking at adoption, Wootrade has seen strong growth on both business and technical development fronts and over the last few weeks our network is now averaging around $50 million per day in transaction volume. This number, while encouraging, represents only a fraction of what our existing clients and proprietary users such as Kronos Research are trading on a daily basis. As we complete testing phases early next year and transition to more inclusive integrations, our volume numbers should reach new levels and bring even more liquidity and value to the network.

Our advanced trading GUI, WOO X, is now in internal testing sprints and we anticipate launching the beta version early inin the first half of 2021. That means professional and institutional traders will soon be able to directly connect to the Wootrade network and trade in a zero-fee environment, (provided they stake an appropriate amount of WOO tokens in advance). Early feedback has been very positive, and with our growing team of top engineers and systems architects, we are looking forward to building out the platform in a secure and intuitive manner.

If 2020 was about development, 2021 is going to be about execution. Releasing WOO X, improving the user experience for our exchange clients, acquiring users and community members, increasing demand for the WOO token, and cementing Wootrade as the top professional trading platform in the industry — these are just some of the targets we are determined to achieve.

In addition, we are constantly looking for ways to leverage our liquidity, technical expertise, and experience in the financial sector to provide more comprehensive services to our clients. To better support this, we are also in discussions with some major institutions from the traditional finance sector to really add to our credibility and resources via strategic investment and partnerships. With the latest wave of institutional blockchain adoption, there has never been a better time to be in our position.

Our track record with Kronos Research should leave no doubt that our team is capable of meeting our objectives. As we embark down that path, we are excited to be sharing this phase of our journey with you, whether as a partner, a client, an investor, or merely a friend of the project. From all of us at Wootrade, we hope you had a fulfilling holiday season and a prosperous new year.

Sincerely,

The Wootrade Team

Financials:

Token overview

248.8 million tokens are in the circulating supply, which makes up 8.2% of the total supply.

Data current as of Jan. 8, 2021. Source: Etherscan

Technical development:

The focus of Q4 was to:

  • Continue building the GUI for professional traders — known as WOO X. The customizable frontend is now in a testing phase with a video preview available on Twitter.
  • Improve the gateway architecture on the Wootrade Network to expand the capacity of trades.
  • Enhance the risk control system on the core matching engine.
  • Change the way the private sale and seed tokens are unlocked to reduce concentrated sell pressure. The updated system allows investors to claim their vested tokens via smart contracts.
  • The margin trading function went online in December with a hybrid margin mode added to simplify trades for institutional clients. The network supports 2x margin trading for the following USDT pairs:

A lot goes into building a trading platform. We asked our CTO, Terence Wu, for an explanation of the various modules they were working on. He provided us with the following overview:

Business development:

  • The WOO token was launched on October 29, 2020, announcing a simultaneous public sale on Gate.io, MXC, Bitmart, Hoo.com, and LBank.
  • Zealous Rhino staking program was launched for API traders and B2B clients, allowing trading platforms to source from Wootrade network’s order book by staking WOO tokens. The current program adopters are: MXC, Hoo.com, Gate.io, BitMart, Oneboat Capital, AKG Ventures, BitZ, CoinEx, and BitMax.
  • Staking WOO tokens is the key to zero fees trading on the network. 24 million WOO tokens have been staked by the institutional partners and exchanges in the Zealous Rhino program. All the transactions of the program are transparent and the staking address can be publicly monitored on Etherscan at: 0x1e6….b1c4b05.
  • According to Coingecko, the WOO token is available to be traded on: Hotbit, Huobi Global, Huobi Korea, BitMax, MXC, Digifinex, Gate.io, LBank, Uniswap, Balancer, DODO, AEX, BitAsset, BKEX, ZBG, Bilaxy, Bitmart, Hoo.com, BitZ, CoinEx, and Loopring.
  • Wootrade partnered with Chainlink, whose oracle technology will be used to verify transactions on the Wootrade network.
  • Launched a number of pooling, staking and rewards programs including BitMax, Huobi, Balancer, Uniswap, DODO, and Loopring.

Legal:

As a trading platform, Wootrade is very cognizant of the need to work within existing regulatory frameworks. Here’s a summary of several key areas that the legal team focused on in Q4:

  1. Established AML CDD process and customer acceptance policy for a cryptocurrency service provider
  2. Engagement with potential AML service providers for onboarding by Q1
  3. Regulatory research on cryptocurrency service providers in multiple jurisdictions
  4. Legal opinion and case summary for internal risk assessment

Human resources:

In the past quarter, the number of full-time Wootrade employees has swelled from 18 to 30.

New hires in Q4 include:

  • Marketing VP
  • Marketing Senior Associate
  • Visual Designer
  • UX Researcher
  • Product Manager
  • Legal Counsel
  • Lead Backend Engineer
  • 2 Senior Backend Engineers
  • Backend Engineer
  • Senior recruiter
  • Office manager

Future outlook:

Moving forward with Q1, Wootrade has identified a few key areas for a healthy ecosystem:

  • Transparency and inclusion: Priorities include showing details of the platform and gaining the feedback and support of community product testers while designing WOO X.
  • Diversity and growth: Attracting a larger pool of community members, token holders, and platform users in various regions including English-speaking regions, Latin/South America, Taiwan, Vietnam, Turkey, Russia and Eastern Europe.
  • Acceleration and Execution: Onboarding more clients, increasing key business metrics, and procuring the staking of WOO tokens across the many usage scenarios on the network.

There will be a lot more news and notes coming in January — don’t forget to follow our socials to stay updated with all the news from the Wootrade Network:

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