May 25, 2023

WOOFi introduces cross-chain staking powered by Arbitrum and LayerZero

The WOO token can now be staked across seven chains to earn USDC on Arbitrum from WOOFi swap fees

A trip back in time

WOOFi Stake 1.0 was born on BNB Chain back in December 2021 and quickly grew in TVL as WOO stakers were rewarded with 80% of all swap fees. Since then, WOOFi has processed $4.7B total trading volume - enough to buy back and pay out 4.6M WOO tokens in real yield to stakers across five supported chains.

Read till the end to learn how to migrate your WOO from WOOFi Stake 1.0 to 2.0

Cross-chain staking with a single APR

Despite a string of successes that include more than 100M total WOO staked and APRs as high as 20%, the community helped us identify areas that could be improved even further.

One unintuitive point identified in WOOFi Stake 1.0 was the disparity in yield between chains. Chains with higher trading volumes where less WOO was staked received the most fees, and the dynamic nature of DeFi made it difficult to project where the best yields would be.

Yields differing across chains before WOOFi Stake 2.0

WOOFi Stake 2.0 improves upon this model through an integration with LayerZero’s cross-chain messaging technology. Now you can also stake WOO on two new supported chains including Ethereum and Optimism but the rewards will be combined and claimable on Arbitrum, simplifying the experience for multi-chain users and those just seeking yield without any guesswork.

One APR for seven chains made possible by LayerZero

Multiplier points

WOOFi Stake 1.0 was a purely passive experience optimized for those who wanted to set and forget. WOOFi Stake 2.0 now provides an opportunity for people to increase their yields by actively using the platform.

How it works

WOOFi stakers will passively earn multiplier points (MP). One MP represents one non-tradable WOO token that can be staked to increase your share of WOOFi swap fees. A user staking 100 WOO and 50 MP will earn the same fees as a user staking 150 WOO and 0 MP.

To boost the base APR at which multiplier points are earned, WOOFi stakers can complete the following challenges at launch:

Swap on WOOFi (1.3x multiplier)
Maintain TVL in WOOFi Supercharger vaults (1.3x multiplier)
Auto-compound rewards (1.3x multiplier)

Multiplier points need to be staked for them to take effect, and this can be done manually, or automatically by turning on the auto-compound feature.

The size of the monthly trading volume and TVL required to activate your multiplier point boost is determined by your staking tier (see below).

Stake WOO, earn USDC

Fans of passive income will love the fact that WOOFi Stake 2.0 pays out yield in USDC. For the diehard WOO believers, a new ‘compound’ feature enables users to auto-convert their USDC into more staked WOO, further increasing their MP and locking up a larger portion of the WOO total supply. This non-inflationary, real yield model is key to ongoing improvements to WOO tokenomics.

Stake when you want, leave when you want

Stake 1.0 had a 7-day unbonding period or alternative 5% instant unstake fee to mirror the experience of staking on WOO Network’s centralized exchange, WOO X. WOOFi Stake 2.0 allows anyone to unstake their WOO at any time without delay or any fee. Long-term staking is incentivized in a different way: multiplier points will decrease in line with the amount of WOO that is unstaked. For example, a user who unstakes 10% of their total WOO will also lose 10% of their total accumulated multiplier points.

Migrate your WOO

For a tutorial on how to migrate your WOO into Stake 2.0, click here. The guide also has instructions for Supercharger vault depositors who need to take one step to start earning WOO tokens instead of xWOO.

More to come

Today represents just the first form of WOOFi Stake 2.0. In the coming months, we’ll be releasing more updates starting with WOOFi NFTs to add further dynamism to the WOOFi staking experience. There’ll be two types:

Consumable NFTs that can be earned through quests and then staked and burned to temporarily boost yield. The rarity of the NFT will dictate the size of the boost.
WOOFi Avatar NFTs - NFTs that will provide a permanent boost to WOOFi staking yields. More details to come.

Stay tuned for more announcements!

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