In today's blockchain world, WOO tokens have attracted more and more users with their unique staking mechanism and generous returns. As part of the WOO ecosystem, users can stake WOO tokens on any supported chain and receive real returns in the form of USDC. These earnings come from 80% of the net fees for WOOFi Swap and WOOFi Pro (futures trading). Since the launch of the v2 version, more than $5 million in staking rewards have been distributed to stakers, and stakers have also enjoyed various airdrops including $ZRO (LayerZero), $ARB (Arbitrum), $ORDER (Orderly Network), etc. There will be more airdrop activities in the future.
Unique design of WOO pledge
The WOO staking system is designed to incentivize long-term holders and active users. By combining elements of NFT and DeFi, WOO provides users with a staking experience that is both fun and engaging. Users can choose to stake WOO tokens on any supported chain and receive the same USDC income. Pledgers can also choose to reinvest their earnings into more pledged WOO to further increase their earnings.
The relationship between staking and XP: During the WOO staking process, users can not only obtain USDC income, but also passively obtain experience points (XP). When staking WOO, the user’s basic annual return rate (APR) is 30%. For example, if a user stakes 1,000 WOO, he will receive 300 XP after one year. XP is not tradable, but can be staked to increase earnings. For example, 1 staked WOO plus 1 staked XP is equivalent to 2 staked WOO. However, if the user chooses to unstake, the same proportion of the staked XP will be destroyed.
Over time, the XP accumulated by stakers will be subject to additional rules to avoid excessive inflation of XP. When the ratio of XP to WOO (staking and pending) is greater than or equal to 0.5, the annualized return rate of XP will be 0 (if no challenges are completed). When the ratio of XP to WOO reaches 1, the basic XP annual return rate will be halved to 15%.
Challenges and revenue improvements
In order to further increase the annualized return rate of XP, users can increase their income by completing a series of challenges. For example, users can trade spot on WOOFi Swap (only when using sPMM liquidity), or trade futures on WOOFi Pro. In addition, users can also earn income by depositing assets into the WOOFi Supercharger vault, or turn on the automatic reinvestment function (it should be noted that after turning on this function, users cannot receive staking rewards within 7 days).
If the user pledges at least 1,800 WOO, the annual return rate of XP can be increased to a maximum of 76.05%. This mechanism not only encourages users to actively participate in trading and staking, but also provides them with additional income opportunities.
The convenience of cross-chain staking
The cross-chain staking function of WOO tokens makes it more convenient for users to pledge on different blockchains. Users’ staking positions, XP and staking rewards will be managed on Arbitrum. Through the integration of LayerZero, users can stake WOO and make reinvestments on any supported chain, enjoying greater convenience.
No matter which chain a user chooses to stake WOO on, the annualized return rate for USDC staking rewards will be the same. These USDC rewards are generated from net revenue from the WOOFi protocol (including exchanges and futures), with 80% of fees collected on Arbitrum every Monday and distributed to WOO stakers within seven days.
Cost and time of cross-chain transactions: It should be noted that cross-chain transactions will incur additional gas fees to cover Arbitrum’s operating costs. These charges will vary based on Arbitrum's current gas charges. The completion time of cross-chain transactions depends on the source chain and network status. Typically, cross-chain transactions only take a few minutes, but transactions initiated from Polygon can take up to 20 minutes.
Conclusion
The pledge mechanism of WOO tokens not only provides users with generous benefits, but also encourages users to hold and actively participate for a long time through the XP system. Whether it is the USDC income obtained through staking, or the XP increased by completing challenges, the WOO ecosystem has created abundant income opportunities for users.
With the continuous development of blockchain technology, the cross-chain pledge function of WOO tokens will bring more convenience and choices to users. In this digital asset era full of opportunities, WOO token is undoubtedly an investment option worthy of attention. Whether you are a novice or an experienced investor, understanding and participating in WOO's staking mechanism is an effective way to achieve wealth appreciation.