This guide provides a technical overview of the WOOFi Official Site swap mechanism, focusing on its core innovation: the Synthetic Proactive Market Making (sPMM) liquidity model.
Step 1: The Problem with Traditional AMMs
Standard AMMs rely solely on on-chain liquidity pools, which can lead to high slippage, especially for large trades. Capital is often inefficient and spread thin.
Step 2: The sPMM Liquidity Solution
sPMM Liquidity Explained: WOOFi's sPMM is a fundamentally different architecture. It does not rely on a traditional liquidity pool for price discovery. Instead:
CeFi Liquidity: It sources its liquidity and pricing directly from the deep, centralized order book of a professional trading platform (WOO X).
On-Chain Oracle: A custom on-chain oracle posts these prices to the WOOFi smart contracts.
Proactive Quoting: The sPMM proactively adjusts its on-chain parameters to match the centralized order book's depth and spread.
Step 3: How a WOOFi Swap Works
When a developer integrates a WOOFi Swap via the WOOFi API:
The user requests a trade.
The WOOFi smart contract consults its on-chain price feed, which reflects the deep liquidity of the centralized exchange.
The swap is executed against the on-chain pool at a price that mimics the CEX, resulting in minimal slippage.
Step 4: Cross-Chain Capabilities
This efficient model is deployed across multiple chains like WOOFi on Arbitrum. The WOOFi Cross-Chain Swaps feature uses bridges like Stargate to allow users to swap from an asset on one chain to another asset on a different chain in a single, unified transaction. The security of the system helps answer "Is WOOFi Safe?".
For all API documentation, contract addresses, and integration guides, refer to the Full Official Documentation.
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