Sesterce Capital is building a position in WOO - WOO Network’s native token.

Written by
Sesterce Team

Sesterce Capital is building a position in WOO - WOO Network’s native token.

Written by
Sesterce Team

Sesterce Capital is building a position in WOO - WOO Network’s native token.

Written by
Sesterce Team
WOO Network is a young exchange we believe brings disruptive features to  the market.

Sesterce Capital is building a position in WOO-WOO Network’s native token. 

WOO Network is a young exchange we believe brings disruptive features to  the market. We view this as a medium to long term opportunity play. 

The content below is for informational purposes only. It is not an investment advice and does not constitute any offer  or solicitation to offer or recommendation of any investment product.

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THE WOO NETWORK 

The WOO Network connects traders, exchanges, institutions  and DeFi platforms with democratized access to the best-in class liquidity and trading execution at zero or low cost.  

The WOO Network’s 3 main products: 

WOOX 

Front-end trading platform that fully sources its liquidity from  WOO Network to provide professional traders with superior  trading execution via deep liquidity and lower to zero-fee  trading 

WOOTRADE 

WOO Network’s liquidity can be directly integrated via API  across partner exchanges and institutions to immediately  upgrade their order books to a depth deeper than top  exchanges and tighten their bid/ask spread. 

WOOFi 

WOOFi is a decentralized exchange platform providing the  best possible swap prices and reduced slippage at lower  fees.

WOO Network recently raised $30M in Series A round led by  Three Arrows Capital in Q4 2021. WOO Network intends to  allocate the funds to expand its team as well as build new  derivatives products and develop their social trading feature,  as well as DeFi trading. 

"While the exchange landscape is growing more competitive,  WOO X is poised to make a mark with its deep liquidity  coupled with lower to zero-fee trading – these two  propositions are phenomenally useful for institutional and  retail traders to achieve superior trading execution,” — Three  Arrows Capital co-founder Su Zhu 

A second leg of Series A funding for $12M closed beginning  of the year saw Binance Labs as lead. 

"Woo Network adds significant value to the crypto ecosystem  by providing deep liquidity and zero-fee trading both on- and  off-chain. We are excited to expand our long-lasting  relationship and explore further collaborations, especially on  Binance Smart Chain”. — Binance Labs Investment Director  Peter Huo

MAIN FEATURES 

DARK POOLS 

Any market participant with a decent experience in crypto  

markets has at one point struggled with liquidity issues.  Whether it is with slippage, spread or price impact, it is very  well known that some assets can be a real pain to trade. This  is in part because liquidity is spread amongst too many  exchanges. As of time of writing, the total crypto market cap  oscillates around $2T - with alt coins representing just above  60% - while crypto offerings spread across more than 500  exchanges, DEX and CEX, some of them with ridiculously low  volume, yet baring no choice for buyers and sellers but to use  them in some cases.  

Because liquidity and volume are not sufficiently scaled and  spread across trading venues, large investors, especially  institutional based, are unable to enter the market, or don’t  even bother trying when facing the pain of dry liquidity. 

This is where the WOO Network comes into play. The WOO  Network , formerly WOOTrade, is a dark pool providing first  class execution and deep liquidity for large and institutional  players by partnering with exchanges, OTC desks and quant  teams, such as Kronos Research, WOO Network’s incubator.  

A dark pool allows large transactions to happen anonymously  outside of the public market through deep order book 

offering high liquidity. This enables a whale to come to  market buy 100 Bitcoin without having to worry about spread  or slippage.  

ZERO FEE TRADING 

Another one of WOO Network’s catchy arguments is  

« zero fee trading ». How is the platform able to  generate revenues while offering feeless trading experience  to its users? All thanks to one magic trick: Payment for Order  Flow. PFOF is the compensation and benefit a brokerage firm  receives for directing orders to different parties for trade  execution. The brokerage firm - here WOO Network - receives  a small payment, usually fractions of a penny per share, as  compensation for directing the order to a particular market  maker. This guarantees little to no trading fee when staking  the platforms native WOO token. 

WOO Network earns revenue on the back end, allowing zero  fee trading while still being a profitable business model.

THE WOO TOKEN 

The WOO token is a utility token allowing enhanced trading  experience and access to first class trading features and  services.  

50% of the revenue generated by WOO Network contributes  to the monthly buyback and burn through the purchasing of  $WOO off the secondary market, removing them  permanently from the circulating supply. 

The monthly token burn stats can be viewed on WOO  Network’s website. 

TOKEN UTILITY 

Staking 

$WOO can be staked to reduce trading fees and increase  referral rebates.  

Institutions generating large volumes on WOO X receive  increased API trading rate limites and fee reductions. 

Yield 

A portion of tokens received from WOO Ventures early-stage  project investments will be distributed to stakers. 

$WOO can be staked on WOOFi to earn yields from the  WOOFi swap fees. 

DeFi liquidity provision and yield farming. 

Borrow and lending 

WOO tokens can be used as collateral for borrowing and  lending on: Sushi Kashi, Rari Capital. 

Upcoming utilities:  

Social trading 

WOO stakers can gain access to social trading features on  WOO X to emulate highly professional trading strategies from  top-performing traders. 

Access and discounts for institutional yield strategies 

Users staking WOO tokens benefit from reduced capital  requirements, management and performance fees for  institutional-grade asset management services — such as  Kronos Research's asset management services that generate  stellar yields regardless of market conditions.

Governance 

WOO Network will be progressively decentralized. WOO  tokens are planned to be used as governance tokens to earn  voting points based on amount and duration staked.  Governance tokens will be able to be used to vote on various  proposals affecting governance structure, listing, revenue  sharing mechanisms, and staking mechanisms. 

Sources: WOO Network Media platforms, Investopedia

VALUATION 

WOO token information as of 21 JAN 2022 according to  CoinGecko 

Circulating supply: 884M 

Total supply: 2,990.4M 

Max supply: 3,000M 

Market cap: $656M 

Fully diluted valuation: $2,226M 

Price: $0.74 

ICO price: $0.03 

Tokenomics 

Our primary concern when looking at tokenomics is the  ability of large token holders to have a negative impact on  price through the constant dumping of their allocation as  their unlock schedule allows them to sell on the open market. 

In WOO’s case we are mostly concerned in the Token Sale  and Team allocations of tokens: 

Token Sale 

Of the 20% token sale, 10% were sold in private and public  sales. The other 10% have been sold through seed and  private equity rounds. These tokens vest linearly over 1.5  years from April 2021 to October 2022. 

We are thus currently halfway through the unlock schedule for  these large token holders. We believe that most short term  sell pressure has faded as early investors covered their initial  investment plus some profits. 

Team 

20% of total supply have also been allocated to the WOO  Network team. These are vesting linearly over 3.5 years, with a  large share held in reserve for future team members. This is  the portion we are most concerned about as it presents the  highest risk in terms of price dump and project abandon.  However we believe the backing of recent large funds such as  Three Arrows Capital, and the incentives to build and hold  these tokens outweigh the short term benefit of dumping. 

Exchanges Competition 

Global Ranking 

WOO Network is currently ranked #44 amongst exchanges  according to CoinMarketCap through a score grid based on  traffic, liquidity, trading volume and confidence in the  legitimacy of trading volumes reported.  

WOO Network is currently ranked #44 amongst exchanges  according to CoinMarketCap through a score grid based on  traffic, liquidity, trading volume and confidence in the  legitimacy of trading volumes reported.  

We believe there is a 10x conservative potential growth in the  number of weekly visits, putting it at Bitfinex’ — another  institutional/whale positioned exchange — and MEXC — an  exchange designed for retail investors offering a wide range  of tokens — level.

Native Token Comparison 

We consider FTT to be the benchmark of exchange native  tokens, both in its use case as well as token buy and burn  mechanism. We will use it as a relative valuation metric. 30% of FTX’ derivatives platform goes towards the B&B of  FTT, while 50% of WOO Network’s revenue is used for the  B&B of WOO. 

Here are revenue stats going towards token B&B for 2021:

revenue stats going towards token Buy &Burn mechanism for 2021


FTT’ revenue is currently 130x larger than WOO, although the  comparison is deceitful because of the rapid growth and expansion  of FTT, as well as its first mover advantage, revenue to fully  diluted market cap ratio is about 16x larger for FTT.  

We believe a 10x upside potential can reasonably be  assumed considering the growth outlook in revenue, which  should translate to a rapid growth in WOO’s market cap as  investors will be looking to capture the value created by the  exchange. 

We thus forecast a price per token of $10. 

Author: @MorningCalmAG 

Sesterce.com

@sestercegroup 


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