The WOO token: constructing new application scenarios

The WOO token: constructing new application scenarios

An informative look at how the WOO token will be put to work capturing value within open financial services on the Wootrade Network.

The Wootrade Network has been achieving remarkable growth since the WOO token launch in October 2020. The daily trading volume surpasses $90 million, driven by institutional clients who have discovered the benefits of Wootrade’s powerful zero-fee trading infrastructure. As it grows, the team has methodically been adding additional services to clients, including:

  • margin trading
  • support for market-makers
  • gateways for decentralized platforms

The platform is gradually evolving from its original form as a liquidity pool to a full-fledged financial service provider powered by the WOO token. This is made possible by the experience of the team in traditional finance, the liquidity and support provided by Kronos Research, a wide range of investors and partners, and the open nature of the Ethereum blockchain framework.

The WOO token — Existing use cases

  • Zero fee trading: Clients staking WOO can access the network for zero or even negative fees. There are already 47 million WOO tokens ($1.1m dollars) staked in the institutional staking wallet, with more clients looking to onboard.
  • Discounts: Platform users will have discounts on additional financial services when using WOO as collateral or fee payment.
  • Asset management: Institutional investors can receive reduced fees from Kronos Research on their quantitative trading strategies.
  • Governance: Token holders will accrue voting points and govern increasingly core aspects of the ecosystem.
  • Buying back and burning tokens: Slated to begin in Q1 2021, the team will use a portion of income to buy back tokens from the secondhand markets.

Community Suggestions: Possible new use cases in 2021

Note: The following use cases were provided by the community, and the team has not committed to building or implementing the solutions.

Wootrade strives to build services that clients and the community want. That’s why we asked our community how they’d like to see the WOO token used. Our team reviewed the answers and added some feedback of their own. Below are the top survey answers:

1. Binance Smart Chain integration — from @AllenLu and @Iamgreenpeas

This suggestion was given twice, with both users attracted to the idea that Wootrade and the WOO token should start getting involved in the Binance Smart Chain and other Ethereum alternative ecosystems. The WOO token could be bridged to other networks, expanding its reach in the larger DeFi ecosystem.

“Connecting liquidity to current decentralized finance applications on Ethereum is impractical due to the high fees and slower block times. For a market maker, this becomes impossible to implement any sort of trading strategy. BSC and other Ethereum alternatives are opening up the world of DeFi to the Wootrade Network by creating a more efficient trading environment. BSC, in particular, is one we’ve maintained a strong relationship with due to their strong position in the DeFi space. We are currently determining how soon we can implement a trading infrastructure that would be able to benefit all the platforms in the BSC ecosystem.”

Audrey Yang, Wootrade BD Manager

Secondary lending market — from @Brainchest

@Brainchest suggested the idea of having lending to come to the world of DeFi with Wootrade.

“Lending is actually a significant pain point in the digital asset space right now. Particularly for institutions, who must allocate capital to their clients for margin trading or other derivatives, this creates a shortage of major stablecoin assets such as USDT. This year we’ve seen interest rates driven up for USDT lending, making trading less efficient. A future use case for the WOO token can be based on the creation of innovative debt or lending products. We will share more details on this later in 2021, but the demand is already there.”

Ran Yi, Wootrade COO

Token distribution events — from @O_Rosy

WOO holders should be given exclusive access to participate in sales that could happen on the Wootrade network. One advantage of this is that tokens could simultaneously be available to all client exchanges also connected to the network.

“Like O_Rosy suggests, token distribution events such as IEOs have a very dramatic effect on token demand. We’ve seen this on other platforms, and have considered the impact a launch across the Wootrade Network would have. Not only would all our clients have immediate access, including exchanges and professional traders, but we could provide market-making services on the backend that reduces the major issues with liquidity that platforms face during the launch of a popular token. Many users of other platforms have been left frustrated in the past when launch volatility creates massive spikes and dips in the price. This is simply a liquidity issue and one that adds risk to investors and tarnishes the reputation of the project.”
Ben Yorke, Wootrade Marketing VP

NFT marketplace — from @Betteror203

This suggestion was a bit more light-hearted but hits on a popular topic. Since the cryptocurrency world has many possibilities, liquidity within NFT systems and marketplaces can also present a use case.

“NFTs are an evolving ecosystem and we are currently watching it mature. We believe that NFTs will one day underpin a substantial part of the DeFi ecosystem and are finding traction in insurance and bonds. Wootrade Network is concerned with liquidity and it’s not too far off to think that we can provide liquidity even for NFTs.”

George Aranzaso, Wootrade Investing Analyst

The goal of the Wootrade team is to create demand for the WOO token through innovative use cases that provide direct value to our growing list of clients and stakeholders. 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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