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All You Need to Know About WOWswap- the Leverage DEX

Posted by
Joseph Hall

WOWswap provides 5x leveraged swapping solutions on Ethereum, Solana, Binance Smart Chain and more

WOWswap is a decentralized trading protocol offering up to 5X leverage. It works on all the major blockchains including Ethereum, Solana, Arbitrum, Avalanche, Binance Smart Chain, IoTeX, Polygon and HECO Chain. For liquidity providers, they can supply stablecoins or major crypto assets to the lending pool and receive substantial interest paid by the traders.

The history of the DEX is a short but eventful one. It started with the inception of Uniswap as an Automated Market Maker with liquidity pools. SushiSwap followed–the vampire attack–then more copycats launched on alternative blockchains, like PancakeSwap on Binance Smart Chain. Now every blockchain has its own set of DeFi protocols. But the next big move will be services going multi-chain. That’s where WOWswapcomes into play.

Enter WOWswap. It builds on the success of other DeFi protocols but it adds a clever lending mechanism. With WOWswap, users can borrow assets to buy more of the tokens on the AMM–in effect, going long on the token. Or, they can short, borrowing against loss-making tokens.

It’s as easy as swapping on WOWswap as it is on Uniswap or PancakeSwap. WOWswap automatically borrows the funds required for the extra leverage. In the back end, the DEX locks the tokens in a smart contract until the user wants to close the position. 

WOWswap offers over 80 tradable tokens, and the extra capital traders use is automatically borrowed from liquidity pools. On Binance Smart Chain, the tokens are swapped on PancakeSwap, on Avalanche it’s the Pangolin DEX, on Solana trades are routed via Serum and so on. Yes, that’s right Solana has also recently entered the arena. 

Much Wow for Liquidity providers 

The flipside of the crypto-coin benefits liquidity providers. Basically, thanks to traders using leverage, WOWswap’s liquidity providers receive substantial interest on stablecoins or major crypto assets they provide to lending pools. But because it’s crypto, traders receive an hourly interest rate rather than an APY. 

In effect, when a trader opens a leveraged long or short, the trader takes a loan from the liquidity pool at an Hourly Interest Rate (HIR). Liquidity Providers (LP) must maintain enough liquidity in liquidity pools for this to take place. Anyone can be a liquidity provider by supplying liquidity to the liquidity pools which means anyone can earn hourly interest.

When you deposit assets to a liquidity pool, you receive interest-bearing tokens representing the liquidity provider’s share of the pool. For example, if you deposit BNB or BUSD to liquidity pools, the LP gets ibBNB or ibBUSD tokens. Naturally, interest rates fluctuate greatly, but they can exceed 100% at hourly rates.

NFTs and Referrals

A fascinating use case for WOWswap is leveraged trading of fractionalized NFTs. WOWswap is built on top of NFTx, a protocol handling NFT fractionalization. As a result, you can FOMO in or merely speculate by trading popular NFTs with leverage. Currently, some of the most sought-after NFTs feature on the platform. Think CryptoPunks, Cool Cats, The Doge NFT and more. Check this link to see some examples.

DappRadar has been busy tracking NFT sales, wallets and hype for the past year. In our recent industry report, we clocked $4.2 billion in trading volume in October alone, a 2% increase month-over-month. Thanks to fractionalized NFT trading, you too can get a slice of the action.

For your final wow, the protocol offers an exciting referral program. If you refer a friend to WOWswap using your referral link and they start Wow-swapping, you’re in the money. 

First, your wallet is recorded on Binance Smart Chain (or Polygon and HECO) as a receiving wallet. Shortly after, you’ll begin receiving bonuses from the Salary Pool. This ‘free money’ is 0.2% of your friend’s trading volume.

In the future, WOWswap will release WOWswap Pro offering more functionalities and control.  Until that time, go full degen and use 5x leverage on the WowSwap DEX. Or, earn amazing hourly interest rates by becoming a WOWswap liquidity provider. 

Click here to follow WOWswap on Twitter and here to subscribe to their Medium articles. 

Disclaimer — This is a sponsored article. DappRadar does not endorse any content or product on this page. DappRadar aims to provide accurate information, but readers should always do their own research before taking action. Articles by DappRadar can not be considered as investment advice.

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