WOO X challenges exchanges with live price execution data
A pioneer of zero-fee trading, WOO X takes its transparency one step further by launching the Execution Quality Analytics dashboard, which allows traders to calculate price execution across different exchanges using data in real-time.
“The Execution Quality Analytics dashboard is another initiative to further improve our transparency, on top of the live proof of reserves dashboard that we pioneered last year. This is another first among the centralized exchanges, which only shows our proactive commitment to sustaining the trust of our customers,” said Ben Yorke from WOO Network Ecosystem team.
Calculating execution on the dashboard is done in three steps 1. Choose the desired pair on either spot or perpetual swaps, 2. Input the size of the order, and 3. Select the time for the data. Users can then compare the price execution data from five exchanges - WOO X, Binance, OKX, Bybit, and Kraken - while data from other exchanges are currently being integrated.
Hovering on the dashboard will reveal price execution data from different exchanges at a given time. Data show total slippage and fees, where a lower number indicates better price execution.
Apart from providing the live price execution data, WOO X also shows the parameters of how the numbers are calculated such as the VIP tiers at the CEXs. It should be noted that users only need to be at tier 1 on WOO X to enjoy the perks that users get on higher tiers on other exchanges.
Payment for Order Flow (PFOF)
WOO X operates on a model similar to Payment for Order Flow (PFOF), where it directs orders to other market makers/exchanges. In return, the platform earns revenue for routing the orders. A potential downside in PFOF is the potential for front running.
However, on WOO X, transactions are settled upfront. If you ‘take’ an order from the order book, the price you see is the price you get. In addition, WOO X is also transitioning to a Designated Market Maker (DMM) model, further improving our liquidity and allowing the platform to introduce more tradable token pairs for our users. The true cost of executing a trade, thus lies in the CEX’s fees + spread.
While zero fees are easy to understand, users often forget about the extra costs associated with trading with inferior spreads, which greatly affects profitability for the ‘size’ traders. WOO X provides some of the tightest spreads made possible via liquidity aggregation. The Execution Quality Analytics dashboard tracks the true cost of trade across major exchanges.
Related story - WOO X Merkle Tree PoR: How to directly verify account balances against WOO X holdings
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