In the next few weeks, Wootrade will reveal more details about the upcoming WOO token pre-sale. But first, let’s learn a little more about Wootrade and how it is set to disrupt cryptocurrency trading and investing as we know it.
Since the advent of cryptocurrency trading, users have had access to a global network of assets 24 hours a day, seven days a week. This new asset class has unlocked unthinkable wealth accumulation possibilities and introduced a wide demographic of technology enthusiasts to the world of professional trading and investing. Still, market participants are often unable to realize the full potential of their transactions, held back by poor liquidity, restrictions of unreliable exchanges and lack of sustainably high-performing investment options. In this article, we take a look at how Wootrade is equipping the individual with the tools they need to take full advantage of the value inherent in cryptocurrency markets.
Defining the problem: Multiple exchanges and inadequate liquidity — a tax on traders
Cryptocurrency was meant to connect global markets. It is largely unregulated but has highly segregated liquidity: it raises the costs for both sellers and buyers, especially participants with larger size. Unlike traditional markets where trading volume is concentrated and platforms are obligated (by law) to execute at the best bid/offer across all venues, cryptocurrency exchanges sprouted up around the world like islands, with each having their own asset pools and trading communities. With this comes thin order books, that forces users to wait frustratingly long times for orders to fill, unless they are willing to accept a price far from the market price. This might be fine for occasional small trades, but make no mistake, for those serious about their results, liquidity is king. Larger-sized trades need to be executed instantly without affecting the market price. Users must resort to only using the biggest exchanges, regardless of whether they approve of the fee structure, layout, business practices, or ethics of the exchange itself. Currently, the top three exchanges control roughly 70% of the liquidity, trading 25 billion dollars a day and each earning hundreds of millions per year in fees. This has created an environment where new entrants cannot compete, innovation slows, and everyone plays by their rules.
Leveling the playing field with Wootrade
Wootrade is about to disrupt this fast-growing multi-billion-dollar industry by offering access to its industry-leading liquidity pools. Through its partnership with Kronos Research and other quantitative market-makers, Wootrade is enabling the creation of ‘Super Exchanges’ who will set the standard for liquidity and best execution for traders.
By using Wootrade, these Super Exchanges entering the market can have market-leading order books from day one. Those with live exchanges can upgrade their liquidity without any cost and stop using expensive and ineffective market-makers.
Finally, our innovative revenue share model enables all our current clients and the new class of exchanges to charge ZERO commissions to all non-API traders. To put this into perspective, keep in mind that active traders will save on average 500K USDT a year in trading fees. If we consider slippage, it will be an even higher value add.
In effect, Wootrade is providing the crucial foundation that exchanges need to deliver a truly great experience for the individual. Instead of dealing with the distractions of trading technology and liquidity, these Super Exchanges can now focus solely on customer acquisition, retention, and provide the level of service that’s needed. End users reap the benefits by having a better trading experience and the option of ZERO-Fee trading.
Building the best liquidity pool so others can develop on top of this foundation
In a way, we are to centralized and decentralized exchanges what Ethereum is to DApps, as we are an underlying layer rich with liquidity and with digital assets that exchanges can access freely. Unlike Ethereum, we are able to reward people for usage and aren’t burdened by the cumbersome scalability or gas issues.
Our value proposition isn’t limited to exchanges. Naturally, it extends into the asset management space as well. Wootrade will attract the leading trader teams and individual traders onto the platform due to the superior trading experience. Wootrade will be a wealth spring of innovative and consistent high-return strategies that will eventually be opened to the public either through regulated centralized methods or unregulated decentralized routes.
So what is Wootrade? You can think of it as the foundation for trading and investing — a base layer solution for cryptocurrency exchanges and platforms. It’s all powered by the WOO token, which will be used to unify, strengthen and reward the community. In general, the more trading volume and Assets Under Management (AUM) we have, the more tokens will be staked and spent.
Examining the use cases for the WOO token
- Payment — The token can be used to eliminate or reduce fees, similar to a standard exchange token. Regular traders have zero fees but trading teams using our advanced API tools will have fees which can be reduced by using and holding WOO tokens.
- Staking — Users can have access to highly coveted trading strategies (copy trading or direct investment) by staking WOO tokens and other cryptocurrency pairs on another top-performing trader of your choosing.
- Reverse liquidity mining — get paid to trade and take away liquidity from the platform as a PRIME node. Flow providers such as exchanges or trading communities can stake 5M WOO tokens to become eligible to achieve PRIME status and get paid for every dollar of trading from their community.
- Collateral — WOO can be used as collateral to trade derivative products on the platform with reduced fees and other incentives.
- Partners — Our client and partner exchanges which do not have their own token can adopt WOO as their platform token to encourage higher trading volume.
Open governance on Wootrade
The goal is for the community to have increasingly more power to evolve the project as it sees fit. Voting power increases exponentially in proportion to the duration staked so those who purchase tokens just to vote will not have much sway over decisions. Rather, those who have held for the right amount of time will be able to affect the decisions made with more weight. Additionally, we will try to encourage those with the right set of skills and experience to participate more actively in the governance and decision-making process through our incentive program.
To recap, the foundation provided by Wootrade will give rise to a new breed of Super Exchanges that will be able to offer a quality of service that market participants deserve and offer it at zero fees.. The WOO token is essential in uniting the key participants in this ecosystem — from liquidity mining to governance and staking. As the Wootrade community expands, more exchanges, defi apps, institutions, and professional traders will adopt the WOO token as a method of accessing the Wootrade liquidity pools and platforms with the zero-fee model. Between fee-less trading and deeper order books, traders will be empowered and exchanges will thrive, helping the entire industry reach new heights.