What Is WoWswap? | WOW Review
May 12, 20225 min read
WOWswap is a decentralized protocol built on various platforms, including Ethereum, Solana, Arbitrum, Avalanche, BNB Chain, IoTeX, Polygon, and HECO Chain. It allows leveraged trading, so with WOWswap, traders can buy and sell their favorite tokens with up to 5X leverage by borrowing additional capital from the lending pool. Liquidity providers can provide stablecoins or main crypto assets to the lending pool and receive interest paid by the traders.
When it first launched in April 2021, WOWswap was available only for Binance Smart Chain users, but the leverage trading platform has gone multichain since then, now letting users of Ethereum, Polygon, Solana, Avalanche, HECO, IoTEX, and Metis also take advantage of its derivative crypto financial products. More than 1200 traders use its unique decentralized leveraged trading service, generating roughly $1 million in trading volume per month.
The developers of WOWswap ensured that even before the platform was launched and promoted, its security was on top, as evident from its code audit results from the reliable Hacken firm. This later translated into extreme confidence of early bird backers, with the native $WOW token sale breaking all token launch records and hitting its $700,000 hard cap in a whopping 9 seconds.
As one of the most essential things is transparency between the development team and community, WOWswap has weekly AMA sessions. It's a strengthen point, and it ensures that the community's suggestions are taken into consideration. There are also various social profiles that are available for anyone to visit. Meet the project on Telegram, Twitter, and Discord.
How Does WOWswap Work?
WOWswap is a totally community-driven protocol based on a clear idea: liquidity providers have an opportunity to create a BNB pool, while traders can borrow these funds to buy up to 5 times more tokens within Pancakeswap DEX. Protocol fees, interest rates for both lenders and borrowers, and liquidation ratios are decided by holders of WOW tokens.
To make a WOW swap is as easy as making a usual Uniswap or Pancakeswap — extra currency will be borrowed from the liquidity pool automatically.
Note that you don’t gain an original token but receive a so-called proxy token (if you bought CAKE, you would get wCAKE tokens), which is pegged 1:1 to the original in WOWswap’s smart contract. Your proxy token will be converted back to the original one when you decide to close your trading position.
If the price of your token, you can swap proxy-tokens back to BNB and gain a multiplied benefit. You can also share a 5% of your profit that will return to the community through the insurance fund (2,5%) and token buy-back (2,5%).
What Is $WOW?
WOWswap Use Cases
- become an LP
WOWswap’s liquidity providers receive considerable interest on stablecoins or main crypto assets they provide to lending pools. Traders receive an hourly interest rate rather than an APY.
Thus, when a trader opens a long or short leveraged, the trader takes a loan from the liquidity pool at an Hourly Interest Rate (HIR). Liquidity Providers (LP) must supply enough liquidity in liquidity pools for this to make it work. Anyone can be a liquidity provider by simply providing liquidity to the liquidity pools. In other words, anyone can earn hourly interest.
When you send your assets to a liquidity pool, you gain interest-bearing tokens representing the liquidity provider’s share of the pool. So, if you deposit BUSD to liquidity pools, the LP gets ibBUSD tokens. In general, interest rates swing greatly, but they can go up to 100% at hourly rates.
- become an NFT trader
As, WOWswap is built on top of NFTx, a protocol managing NFT fractionalization, you can trade popular NFTs with leverage. Some of the most popular NFTs there are already on the platform. Among them CryptoPunks, Cool Cats, The Doge NFT, BAYC, and alike.
WoWswap made over $4.2 billion in trading volume in October, a 2% increase month-over-month. Thanks to fractionalized NFT trading, you can share that success, too.
- become a referral program follower
If you send a friend to WOWswap using your referral link and thanks to you, they become Wow-swappers, you get some profit.
If your wallet is recorded on Binance Smart Chain (or Polygon and HECO) as a receiving wallet, you’ll begin receiving bonuses from the Salary Pool. It’s 0.2% of your friend’s trading volume that goes straight to your wallet.
The future is promising, and WOWswap’s going to launch WOWswap Pro offering more features and control. Until that time, use 5x leverage on the WoWswap DEX and get your hourly interest rates by starting to provide liquidity within a WOWswap.
Where to Buy and Store $WOWs?
Buy cryptocurrency only from verified and reliable places — SimpleSwap can be a good example of such a place. You’ll find a wide variety of assets, true security, and convenience while managing crypto operations.
As for sending, storing, receiving, and swapping your $WOW tokens, you’re lucky to use a SimpleHold wallet that is super friendly for beginners and is always to your services as an extension within your browser (Opera, Firefox, Chrome, and Brave) or a mobile app on iOS and Android.