BSC.NEWS hosts WOWSWAP–Leveraged swaps on PancakeSwap. All questions answered by @WowSwap
Lola (AMA HOST): Do I have WowSwap Team member here?Please Say hi 🙋
WOWswap: Hello!
Lola (AMA HOST): You’re welcome. Glad to have you here
WOWswap: Great to be here again
Lola (AMA HOST): How are you doing?
WOWswap: I am very well, thank you
Lola (AMA HOST): Shall we go into what we have for you today? 😊
WOWswap: Yes, I am curious
Lola (AMA HOST): Haha
Same here too. 😊
Q1. Can you give us a general introduction of you and WowSwap? Could you tell us your role in the project and briefly introduce WowSwap?
WOWswap: Sure. I am a WOW Degen, the founder of WOWswap. I am in blockchain since 2017, and research DeFi space since early 2019. Before joining crypto, I used to work for top investment banks (prop trading desk).
Our team remains anonymous for regulation reasons. Also I don’t like publicity – enjoy my private life.
W😮Wswap is the first decentralized protocol for leveraged trading on PancakeSwap. Our team members love to trade the hottest and newest defi projects, but when a Uniswap transaction costs $100 USD an average person cannot fully enjoy the potential of Defi. So that’s why we build on BSC.
Our product’s idea is very simple: liquidity providers can create a BNB pool, and traders can borrow these funds to buy up to 5 times more tokens on Pancakeswap DEX. Protocol fees, interest rates for lenders and borrowers, liquidation ratios and other settings are decided by holders of WOW tokens — our governance token
Lola (AMA HOST): Haha. Introvert?
WOWswap: Yes, in school I was a nerd
Lola (AMA HOST): Great. Good to hear that.
And what’s the interest rate?
WOWswap: Currently we set 0.008% per hour
Later the governance will be able to change that
Lola (AMA HOST): That’s good.
Q2. How many team members do you have working with you? And can you also tell us their roles?
WOWswap: We are growing now, we started like 3 people and now we have a team of 10 people + contractors
we need more marketing people though
will announce job vacancies soon
Our core members are pretty good with Solidity and React
Hiring more rust developers too to launch on Solana 🙂
Lola (AMA HOST): Great. And do you have Moderators working for you too?
WOWswap: We have @CHARLIEaz – he is our community manager – great guy!
I think he does not sleep at all
Lola (AMA HOST): Haha
Good job. I believe the Community is growing too
WOWswap: No! They are leaving actually – there were many airdrop hunters
Lola (AMA HOST): I understand. When marketing is done. I’m sure good investor will come in.
WOWswap: yeah, we had a good call with top VC today, they were impressed, so more investors are coming I believe
Q3. Can you tell us the difference between WowSwap and Pancakeswap? Why should the Community use WowSwap? Is there any benefit?
WOWswap: Sure, WOWswap is a decentralized leveraged trading protocol that runs on top of Pancakeswap.
By using WOWswap, traders can buy and sell their favorite tokens with up to 5X leverage by borrowing extra BNB or BUSD from the lending pool, however trades are executed via Pancakeswap exchange.
It gives us an advantage, because we can use the ample liquidity of Pancakeswap to swap tokens and WOWswap provides users borrowing funds to open leveraged trades with our liquidation mechanism.
So in short, Pancakeswap is not a competitor, but an integral part for WOWswap protocol.
Lola (AMA HOST): Wow! That’s great.
Okay. We’re listening
WOWswap: I think the most important about wowswap is that it is decentralized. Leveraged trading is prohibited in some countries. But we made it unstoppable. This is what sets us apart
Lola (AMA HOST): Good point there!
If I may ask, the name WowSwap how did you come about it?
Wow simply means something amazing..😄
WOWswap: Sure, I was eating a burger, and it was WOW good!
I thought this name fits defi
and burger swap name was taken 🙁
Lola (AMA HOST): 😅😅😅
Interesting..
Q4. How’s been your experience partnering with Binance Smart Chain, Pancakeswap and Hacken?
WOWswap: Well, in fact if not BSc we probably would not work or launch at all. Gas fees are very very high especially for our transactions. in every WOWswap traders do several transactions so the cost could be $300!
So building on Binance Smart Chain and Pancakeswap is great. BSC is fast and costs almost no gas fees. We are happy that Binance supports us as shown by their recent tweet promoting WOWswap. twitter.com/BinanceChain/status/1381787171028267010
When it comes to Pancakeswap, we have chosen to build on their platform thanks to their MASSIVE liquidity for most of the Binance Smart Chain tokens.
Hacken audited our token contract and we are happy to share that we received ‘well-secured’ assessment. No critical or severe issues have been found.
Q5. Can you give us more information or update on WowSwap Leveraged Trading App that is live?
WOWswap: WOWswap launched on the 12th of April 2021! At launch 2️⃣8️⃣tokens are added for leveraged trading by the project team, and anyone can add more tokens via WOWswap Governance.
We put initial liquidity for BNB and BUSD pools so that traders can borrow these funds. I think we now provide the highest (or one of the highest APY for BNB) on the market.
Unlike margin trading accounts on centralized exchanges, WOWswap has an extremely simple interface: just select a token you want to buy for BNB or BUSD and move the leverage slider to the right to set the leverage coefficient 😎.
Leverage can vary from x1️⃣ (no leverage) to x5️⃣ (maximum leverage). At launch for a few days the maximum leverage is set to x3️⃣— this constraint will be removed shortly.
Q6. Can you tell us about the 5% Charges on profits to buy back and burn Wow-tokens?
WOWswap: Well, this is the plan. But it does not work now. When we launch governance, every time a trader closes a leveraged position in profit, 5% of the profit will be taken and 50% of the fee will go to buy back WOW from the market and burn it. With the other half going to the Insurance fund. So, the more money our users make, the higher the burning rate.
We hope the our community will share the best trading strategies, because when our traders make money, all WOW token holders get value from it.
Since there is a possibility that during the big market crashes some positions will not be liquidated on time (losing liquidity providers’ deposited BNB). In this case insurance funds will be used to cover the loses.
Also, when the insurance fund is big enough, part of the insurance fund’s assets could be used to get yield in other defi projects. We could deploy the assets to Venus, for example, and get interest on the BNB we collect as fees. The generated yield could be used to distribute revenue to the WOW token holders.
We are working on Governance now and should finish it in 1-2 weeks
Lola (AMA HOST): Can’t wait to hear the Great News.
Q7. Can you also tell the Community about Liquidating Trading Position in your website?
WOWswap: This is a sad part. Recently many people got liquidated, including myself. I lost 4 BNB.
The market was volatile recently
Lola (AMA HOST): Oops.. sorry about that.
WOWswap: In WOWswap a liquidation event cannot happen by itself, it should be triggered by a margin caller – a person or a company that runs special software capable of tracing numerous leveraged trading positions and making timely liquidations.
Anyone can become a margin caller by running the liquidation software provided by WOWswap (we will share it soon).
Lola (AMA HOST): Okay.
WOWswap: This software pings BSC nodes every second and tries to liquidate unsafe positions
In case of a successful liquidation, a margin caller receives a liquidation reward, calculated as a percentage of the total position size.
Currently it is 5%
Later the liquidation reward will be defined via the Governance.
When a margin caller makes a liquidation transaction, WOWswap’s smart contract verifies whether the liquidation condition is satisfied, and, if so, proceeds with the liquidation.
During the liquidation, all parties are paid according to the following order:
1. the margin caller gets a liquidation reward
2. then the liquidity pool receives the debt with accrued interest
3. if any funds are left, the trader receives the rest of the funds.
Q8. Can you share with our community the plans you and your project have for this year and the coming years?
WOWswap: We have a plan for the next few months.
First, we are upgrading the protocol due to the Pancakeswap’s upgrade. Very soon WOWswap will check the best liquidity on several DEXes, like 1inch.
Second, we are focusing on our users, get their feedbacks and implement small improvements and features, such as showing a liquidation price on the portfolio screen. We are adding statistics page so that users can see all trades in live mode.
As I said before, to make the protocol fully community-owned we adding governance. Users will be able to stake WOW, receive xWOW and vote on various protocol’s parameters. In return the protocol will reward those users with part of the profit generated from profitable trades.
Also, we are starting developing another innovative feature – leveraged short selling. I personally, dreamed about this long time ago, as I have many 💩 coins. Users will be able to create pools with ANY coins and give them to trades to borrow. Once a trader borrows he (she) automatically sells this coin on Pancakeswap, creating a short position. I think we all have a lot of fun there.
Finally, we will focus on user acquisition. We need the world to know more about leveraged trading. Many people are afraid. But if you set leverage 1.5 for example, you have very low risk, and still 50% more profits compare to a trade without leverage. Just don’t do x4 or x5
Lola (AMA HOST): This is really a good one. Wish you success
WOWswap: Thanks
Q9. What are the major challenges of WowSwap and how do you intend to solve them?
WOWswap: The number one challenge is the fast pace of development in DeFi ecosystem. To be successful we need to see where the market is going to go next and plan accordingly to offer products that people love to use. At this time is leverage exposure to smaller cap altcoins on decentralized exchanges to maximize returns in the bull market and high APY for major token holders.
We see that many new blockchains are coming, major projects are doing upgrades, so that we need to keep up. Our codebase is growing a lot and we need to refactor our smart contracts. Recently our Factory started consuming more than 9 million gas. So we run a lot of optimisation.
Q10. Share with us all the links about WowSwap, so that readers can find out more and also follow the development of the project.
WOWswap:
Try WOWswap here:
Follow us on Twitter:
Learn how to use the app:
Q11. Lastly our favourite question, do you have any alpha or juicy news for us in BSC News today?
WOWswap: Yeah, we worked very hard all week and almost ready to launch on Polygon (formerly Matic). It also has extremely low gas fees and opens WOWswap to Ethereum community!
Lola (AMA HOST): Great
We’ve come to the end of this session. Thank you for this Great AMA. @WowDegen
WOWswap: Thank you very much!
Source : bsc.news
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