WOWswap launches leveraged swaps app on Binance Smart Chain
SEOUL, South Korea - April 13, 2021 - (Newswire.com)
WOWswap, a community-run protocol for leveraged trading on decentralized cryptocurrency exchanges, launches its mainnet app on Binance Smart Chain. The launch comes 46 days later after setting a new world record as the fastest token sale ever, closing its $700k hard cap in 9 seconds.
Traders can now open long positions for 28 tokens on Binance Smart Chain with up to 5x leverage. WOWswap mechanism allows individual liquidity providers to provide liquidity to BNB and BUSD pools, and traders use these funds to finance their leveraged swaps on decentralized automated market makers (AMM) such as Pancakeswap. In return, traders pay Hourly Interest Rate to the liquidity providers allowing BNB and BUSD lenders to earn passive income.
To earn additional income, WOWswap protocol lets anyone become a margin caller by running a liquidation software provided by WOWswap. In case of a successful liquidation, a margin caller receives a liquidation reward currently set at 5% of a total position size.
Leverage to the people
Not so long ago, leverage trading was an exclusive domain of highly trained investment professionals. Crypto has changed this forever - now all major cryptocurrency exchanges offer margin trading accounts to everyone. However, they centrally control leveraged trading rules, deciding on assets, available for leveraged trading, capital lending rates and liquidation procedures.
In decentralized finance (DeFi) leveraged trading also should be decentralized: community needs to be able to create and operate common liquidity pools and decide on leverage trading.
In WOWswap, all critical protocol's parameters such as tokens approved for leveraged trading, liquidation margins, insurance fees, liquidation rewards, lending rates, fees for traders and liquidity providers are collectively decided by holders of WOW token - the protocol's governance token.
On top of governing the protocol, WOW token accrues value every time traders close leveraged positions in profit. In this case 5% of the profit fee will be taken and 50% of the fee will go to buy back WOW from the market and burn it, with the other half going to the Insurance fund. It incentivizes WOW community to share the best trading practices, because the better WOW traders trade, the higher the burning rate.
About WOWSwap
WOWSwap is a protocol that lets anyone utilize the benefits of leveraged trading in a community-run decentralized exchange. For more information visit https://wowswap.io or get updates by following WOWswap on Twitter or joining the Telegram group.
Media contact: Hello@wowswap.io
Press Release Service by Newswire.com
Original Source: WOWswap Launches Leveraged Swaps App on Binance Smart Chain
