Additionally, WOWswap is secured by Chainlink Price Oracle to prevent on-chain actions based on manipulated price data.
Can I stake WOW?
Yes. WOW token holders can stake WOW in WOWSwap Governance Module ( WOW DAO) for a period from 14 to 730 days and receive non-transferable xWOW tokens, which are used for voting.
By staking WOW, you will receive WOW DAO rewards from the protocol fees as well as extra WOW emissions. The rewards are distributed proportionally among all xWOW holders, so by selecting a longer staking period you will be entitled for a larger share of the rewards.
21% of the total supply is allocated for rewards, distributed over the course of 8️ years Currently staking and voting is available on BNB Chain.
What is xWOW token?
To participate in WOW DAO users need votes, represented by non-transferable xWOW tokens, which users get in exchange of staking WOW tokens and/or Pancakeswap LP tokens (WOW/BNB and WOW/BUSD) in the Governance smart contract.
xWOW token is used for voting and WOW DAO reward distribution. Governance rewards are distributed proportionally among all xWOW holders. Staking by itself is sufficient to get WOW DAO rewards, no actual voting is required.
The number of xWOW tokens received for staking Pancakeswap LP tokens is 1.5 times higher than for staking WOW tokens, because obtaining LP tokens requires 2 times more liquidity (WOW + BNB or WOW + BUSD).
Also, the number of xWOW tokens depends on the length of the staking period, during which the tokens will remained locked: the longer the period, the more xWOW are issued for the same number of WOW / LP tokens.
How does the WOW DAO work?
Users can vote on critical protocol parameters that define the protocol’s security and profitability. These parameters can be changed on-chain with permissionless governance, that counts every vote and adjusts the protocol's parameters without any downtime.
The procedure is fully automated, and parameters are updated instantly. In order to vote, WOW token or WOW liquidity token holders (on Pancakeswap) will stake their tokens to receive xWOW - non-transferable governance tokens.
The scope of WOWswap DAO includes:
1. WOWswap Financial Parameters- defines all major financial parameters of the protocol.
2. Economic Parameters - defines how WOW protocol generates revenue and redistributes it.
Can I become a WOWswap Keeper to liquidate positions?
Yes. Anyone can become a WOWswap Keeper. No programming skills are required and is done in a few clicks.
By becoming a WOWswap Keeper you can receive Liquidation Rewards, that are decided by WOW DAO.
Here is a simple instruction how to create WOWswap liquidation bot in less than 5 minutes! https://github.com/wowswap-io/liquidation-bot
The liquidation bot will not be installed on your laptop/desktop but on a cloud-based application platform Heroku. Heroku will charge $7/ month per bot per network, so if you want to run liquidation bots both on BNB Chain and Polygon you will pay $14/month. Also, to call liquidation transactions you will need to have just a little bit of BNB/Matic on your liquidation wallet to cover the costs of gas.
Where can I trade WOW?
WOW is tradable on WOWswap.
Pancakeswap exchange in WOW/BNB and WOW/BUSD markets
To trade WOW on Pancakeswap please enter the BNB Chain WOW token contract [0x4da996c5fe84755c80e108cf96fe705174c5e36a] into 'to' box on Pancakeswap exchange.
Quickswap exchange in WOW/USDC market
To trade WOW on Quickswap please enter the Polygon WOW token contract [0x855d4248672a1fce482165e8dbe1207b94b1968a] into 'to' box on Quickswap exchange.
What tokens are available for leveraged trading?
WOWswap launched with the top most liquid tokens on PancakeSwap, Quickswap and MDEX for up to 5x leverage trading.
Tokens available on BNB Chain Network: BNB, BAND, CAKE, DOT, UNI, YFI, BIFI, WOOP, UNFI, ALPHA, XRP, BRY, ADA, ATOM, ETH, BTCB, AUTO, XVS, SFP, TWT, SXP, LINK, FIL and LTC and continuously adding more.
Tokens available on Polygon Network: ETH, wBTC, CEL, MATIC, LINK, AAVE and continuously adding more.
Tokens available on HECO: AAVE, BCH, BTC, COMP, DOT, ETH, FIL, HT, LTC, MDX, SNX, UNI and continuously adding more.
Later the community of WOW token holders will be able to vote to add any token for trading on WOWswap.
How to participate in the WOW token public sale?
The public sale is now finished.
140,000 tokens were sold on February 25th at $5 USD per WOW token.
How will the token sale funds be used?
In order to bootstrap an initial liquidity for leverage traders and accelerate the development of the protocol we decided to make a public token sale.
To promote and bring adoption to the WOWswap protocol 90% of the total raised funds will be used to provide liquidity on PancakeSwap, protocol development, marketing, audit and for BNB lending pool. 10% will be kept as a reserve for a further expansion of the protocol:
$400,000 for BNB lending pool to enable leveraged trading;
$200,000 for continuous protocol development;
$200,000 for marketing;
$150,000 to bootstrap liquidity on PancakeSwap;
$50,000 for smart contract audits;
$105,000 kept as reserves.
How will community tokens be distributed?
55% (550,000) of the total token supply will be distributed to the community.
Community tokens will be distributed to the protocol’s users over a period of 18 months. The preliminary plan is as follows:
250,000 tokens will be distributed to liquidity providers
100,000 tokens will be distributed to leveraged traders
50,000 tokens will be distributed to margin callers
200,000 tokens are reserved for marketing activities, community contests, bounty campaigns, white hacking rewards, and airdrops.
What are the protocol fees?
The protocol charges 5% of net profit made by traders, calculated in BNB.
For example, if a trader buys a token for 10 BNB with 5 X leverage (50 BNB in total) and the token’s price increases by 20%, then the trader’s gross profit is 1.250 – 40 BNB (borrowed) = 20 BNB. Suppose, the cost of capital was 0.5 BNB, so the net profit will be 19.5 BNB. The protocol fees will be 0.0519.5 = 0.975 BNB.
50% of this amount will go to the insurance fund (0.4875 BNB), and another 50% will be spent to buy and burn WOW tokens.
What is the insurance fund?
The insurance fund is the protocol's native fund to mitigate possible losses for liquidity providers.
We do our best effort to make WOWswap as safe as possible, but in case of a black swan event some trades theoretically can be liquidated below the liquidation price. If it happens, insurance fund will be used to cover the losses of the liquidity providers.
In the future, WOW token holders will have a right to manage insurance fund's assets and may decide to use part of the fund for investments.
What is the Hourly Interest Rate?
Every time a trader opens a leveraged position, BNB is borrowed from the BNB lending pool to buy a token with leverage. To borrow BNB a trader needs to pay interest, which is commonly represented by APY.
However, since margin traders do not keep their positions for too long and the lending pool's utilization rate can fluctuate throught the day it is not very practical to use APY. Instead, we introduce Hourly Interest Rate. This rate gives a much better understanding to the trader about the cost of capital. Once a leveraged swap is complete, the HIR will be fixed for this swap until the trader interacts with it by buying more tokens or selling a part of them.
For example, if HIR = 0.1%, a trader who borrows capital just for 1 day will end up paying “only” (1+0.01)24-1 = 2.43%
Paying 2.43% interest for 1 day might seem like a lot, but if the token the trader bought grows 20% on the same day, with 5X leverage he will make 90% net profit (after repaying the loan with interest). For instance, let's assume a trader has $100, and borrows $400 to buy a token for $500. After a 20% price surge he will have $600. However, he needs to pay back $400*1.0243 = $410 to the liquidity pool, so he is left with $600-$410 = $190. The net return for this trade will be ($190-$100)/$100 = 90%.
I bought a token on WOWswap, but received a proxy-token instead. What is a proxy-token?
The proxy-tokens are pegged 1:1 to the underlying tokens and are held by WOW’s smart-contract on your behalf. Every time you sell proxy-tokens, WOWswap automatically converts them to the underlying tokens, swaps them on Pancakeswap, and sends you the funds.
How will WOW governance work?
Users can vote on critical protocol parameters that define the protocol’s security and profitability. These parameters can be changed on-chain without any human intervention. The procedure is fully automated, and parameters are updated every 24 hours.
In order to vote, WOW token or WOW liquidity token holders (on Pancakeswap) will stake their tokens to receive xWOW - non-transferable governance tokens.
xWOW token is used for voting and Governance reward distribution. Governance rewards are distributed proportionally among all xWOW holders. Staking by itself is sufficient to get Governance rewards, no actual voting is required.