Key Takeaways
WOOFi is an all-in-one decentralized finance (DeFi) application built by WOO Network. It allows users to swap assets, provide liquidity, and stake WOO tokens across 18+ supported blockchain networks.
WOOFi uses a synthetic proactive market making (sPMM) model to simulate deep, institutional-grade liquidity from WOO Network's centralized exchange, WOO X, providing low-slippage swaps at competitive prices.
WOO is the native token of the WOO Network ecosystem. Holders can stake WOO to potentially earn a share of WOOFi's swap fee revenue and participate in governance. WOO has a deflationary buyback-and-burn mechanism funded by 50% of WOO Network revenue.
In March 2024, WOOFi Swap v2 on Arbitrum was exploited via a flash loan and sPMM price manipulation attack, resulting in losses of approximately $8.5-8.75 million. WOOFi paused affected contracts and disclosed the incident publicly. Users should conduct their own research before interacting with any DeFi protocol.
Introduction
Since 2020, decentralized exchanges (DEXes) have experienced rapid growth. To meet the ever-growing demand for low-fee on-chain trading, WOO Network launched WOOFi in October 2021 and WOOFi DEX in June 2022. Together, WOOFi and WOOFi DEX offer a suite of tools from those enabling simple swaps all the way to professional trading interfaces.
How Does WOOFi Work?
WOOFi's product offerings are designed to help DeFi users access competitive prices, low fees, tight bid-ask spreads, as well as a variety of yield-generating opportunities.
The platform offers three main use cases:
Swapping
By paying a minimal 0.025% fee with WOOFi Swap, users can swap popular blue-chip assets within or across the 18+ chains supported by WOOFi.
Earning
Anyone can deposit digital assets to potentially earn competitive APYs through WOOFi's single-sided staking solution, Supercharger Vaults. Single-sided staking requires users to stake only one type of token. This model incentivizes asset holders to provide liquidity to WOOFi, in turn enabling WOOFi to offer better liquidity to traders.
Staking
Token holders can stake their WOO tokens on the WOOFi platform to potentially earn a share of WOOFi's 0.025% swap fee revenue.
Security considerations
In March 2024, the WOOFi Swap v2 contract on Arbitrum was exploited via a flash loan and price manipulation attack. The attacker used flash loans from Uniswap and borrowed WOO tokens from Silo Finance to manipulate the sPMM algorithm's price feed, temporarily driving WOO's price to near-zero and draining approximately $8.5-8.75 million from the protocol. A gap in Chainlink oracle coverage for WOO on Arbitrum contributed to the vulnerability. WOOFi detected and paused affected contracts within approximately 13 minutes and disclosed the incident publicly. The team offered a 10% whitehat bounty and worked to address the root cause. Users should always conduct their own research and exercise caution when interacting with any DeFi protocol.
WOOFi Swap
Unlike other DApps, WOOFi simulates the deep liquidity from WOO Network's centralized exchange, WOO X, meaning users can enjoy DeFi services with more affordable, CeFi-grade prices.
Other advantages of using this model include reduced slippage and increased resistance to sandwich attacks. Slippage refers to the difference between the asset's market price and its actual price upon order execution. It is more likely to widen when market conditions are volatile or when trading with low-liquidity assets, causing traders to buy or sell their assets for more or less than expected.
WOOFi DEX
Launched in June 2022, WOOFi DEX is WOO Network's decentralized exchange powered by Orderly Network. The platform was designed to bring high liquidity, advanced trading tools, a customizable user interface (UI), and a transparent order book to the NEAR protocol. WOOFi DEX helps connect traders with a platform that offers faster execution and lower fees, while allowing traders to maintain custody of their assets.
WOOFi DEX facilitates spot trading of popular blue-chip assets like BTC, ETH, and NEAR. Bootstrapped by leading market makers including Kronos Research, AGBuild, and Ledger Prime, WOOFi DEX aims to deliver an improved DeFi trading experience with the look and feel of a centralized exchange. WOO Network continues to develop the platform's capabilities, including perpetual swaps and advanced order types, in alignment with broader ecosystem demand.
WOOFi Supercharger Vaults
WOOFi enables users to deposit a single token and potentially earn competitive yields while maintaining complete exposure to their assets.
Up to 90% of the assets in the Supercharger vault can be borrowed by WOOFi's liquidity provider at a fixed rate to provide liquidity to WOOFi. The remaining assets are deployed to third-party DeFi protocols for external yield farming. By hedging on WOO Network's centralized exchange, WOO X, and remaining market-neutral, WOOFi's liquidity providers can ensure that there are always sufficient funds for users to withdraw upon request.
This dual strategy enables depositors to potentially benefit from two separate sources of revenue while providing liquidity to WOOFi. Users can request to withdraw their deposited assets with no fee or limit (except when the vault is under settlement) once the 7-day settlement cycle is complete. Ten percent of each Supercharger vault's Total Value Locked (TVL) is set aside each week for instant withdrawals, though a 0.3% withdrawal fee is charged to prevent abuse.
What Makes WOOFi Unique?
sPMM liquidity model
Instead of adopting an automated market maker (AMM) model like most other DEXes, WOOFi leverages an innovative synthetic proactive market making (sPMM) approach to achieve deeper liquidity. The sPMM model aims to simulate the deep liquidity from WOO Network's centralized exchange, WOO X, allowing WOOFi Swap to offer lower slippage and competitive DeFi prices while staying decentralized.
Protection against sandwich attacks
A sandwich attack occurs when a malicious trader places one order before and one after a pending transaction on a DeFi protocol to manipulate asset prices. An exploiter pushes an asset price up by placing a bid at a higher price than a victim's pending bid price. When the victim buys at the higher price, the attacker can sell their asset at the new, artificially inflated price.
Sandwich attacks are common among large traders who swap assets with AMM-based DEXes. Since AMM price discovery is driven by the token balances in the liquidity pool, attackers can take advantage of this transparency to inflate prices.
In contrast, WOOFi's sPMM price discovery is determined by the parameters of on-chain price feeds instead of pool liquidity. This makes it harder for bad actors to predict prices based on token balances alone.
The DEX that pays for order flow
WOOFi has a broker program in place, where it pays 0.5 basis points (bps) on the volume sent by third-party DApps as a rebate. WOOFi also integrates with DeFi aggregators including 1inch, Paraswap, and OpenOcean as a backend liquidity source.
Multi-chain expansion
WOOFi has expanded significantly since its 2021 launch, growing from a small number of chains to 18+ supported networks by 2025, including Ethereum, BNB Chain, Polygon, Avalanche, Arbitrum, Optimism, Base, zkSync Era, Mantle, and Solana (cross-chain via LayerZero). By end-2025, WOOFi had surpassed $35 billion in cumulative trading volume, with WOOFi Pro recording $24 billion in volume in Q2 2025 alone.
What Is WOO?
WOO is the native token of WOOFi and the broader WOO Network ecosystem. WOO provides staking rewards, fee discounts, and governance rights across WOO Network products.
Token holders can stake WOO to potentially earn a share of WOOFi's swap fee revenue. WOO also incorporates a deflationary buyback-and-burn mechanism: 50% of WOO Network's revenue is used for monthly WOO token buybacks, with the purchased tokens burned on the 10th of each month to reduce circulating supply. As of 2026, WOO has approximately 1.88-1.9 billion tokens in circulation out of a maximum supply of 3 billion.
FAQ
What is WOOFi?
WOOFi is an all-in-one DeFi application built by WOO Network that offers token swaps, yield-earning vaults (Supercharger Vaults), and WOO token staking. It is designed to provide institutional-grade liquidity and low slippage to DeFi users across 18+ blockchain networks.
What is the WOO token used for?
WOO is the native governance and utility token of WOO Network. Holders can stake WOO to potentially earn a share of WOOFi's swap fee revenue, receive fee discounts, and participate in protocol governance. WOO also has a monthly buyback-and-burn mechanism that uses 50% of WOO Network's revenue to reduce supply over time.
What is sPMM and how does it differ from an AMM?
sPMM (synthetic proactive market making) is a pricing model that uses parameters from WOO Network's centralized exchange, WOO X, to determine on-chain prices. Unlike a standard automated market maker (AMM), which sets prices based on token balances in a liquidity pool, sPMM relies on off-chain price feeds. This aims to provide tighter spreads and reduce vulnerability to front-running and sandwich attacks.
Is WOOFi safe to use?
WOOFi, like all DeFi protocols, carries inherent smart contract risks. In March 2024, WOOFi Swap v2 on Arbitrum suffered a flash loan exploit resulting in losses of approximately $8.5-8.75 million. WOOFi paused contracts, disclosed the incident, and offered a whitehat bounty. Users should conduct their own research, review the latest security disclosures, and exercise caution when using any DeFi protocol.
What chains does WOOFi support?
WOOFi supports 18+ blockchain networks as of 2025, including Ethereum, BNB Chain, Polygon, Avalanche, Arbitrum, Optimism, Base, zkSync Era, Mantle, and Solana (cross-chain via LayerZero). Check woofi.com for the most up-to-date list of supported networks.
Closing Thoughts
The unique liquidity model that WOOFi uses was designed to mimic a traditional exchange's order book to offer key benefits like deeper liquidity, more competitive prices, and a better overall DeFi trading experience. WOOFi continues to grow its multi-chain footprint and product suite, while its 2024 security incident is a reminder that all DeFi participants should research protocols and understand the risks involved before committing funds. Those looking for reduced slippage and competitive DeFi fees can explore WOOFi and the broader WOO Network ecosystem for more information.
Further Reading
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