WOOFi Earn

Yield Aggregator

WOOFi Earn provides passive yield generating strategies, where users simply deposit into a vault and let the automated strategies do the rest.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
WOOFi Earn enables users to maintain exposure to only one asset while passively earning yield.
What we like less
There are centralization risks as the core contracts are controlled by a 3/5 multisig with no timelock.
What it means for you
WOOFi Earn provides a hassle-free way to earn competitive yields by providing liquidity to professional market makers.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: WOO
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $12.6M (Rank #141)
  • TVL Ranking by Yield Aggregator: #0
  • Blockchain: Arbitrum, Avalanche, Optimism, Polygon, Binance, Fantom
  • Chain TVL
    • Arbitrum: $4.73M
    • Avalanche: $2.7M
    • Optimism: $2.06M
    • Polygon: $1.86M
    • Binance: $1.19M
    • Others: $52.83K
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by several experienced auditors including CertiK and PeckShield
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 20% by total value locked slightly reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • Protocol could be susceptible to negative feedback loops
  • Unsecured lending market with minimal investor protection mechanisms to recoup debt repayments in the event of default
Things to know about WOOFi Earn

How WOOFi Earn works

WOOFi Earn enables users to earn competitive yields while maintaining exposure to only a single asset. The Supercharger vault is the flagship product of WOOFi Earn, which amplifies yield for users by supplying liquidity in WOOFi's sPMM (synthetic Proactive Market Making) pools. WOOFi's sPMM approach is more similar to a typical exchange's order book than an AMM like Uniswap. The sPMM scans order book prices from centralized exchanges like Binance and calculates an appropriate trading price using WOO Network's market data oracles. Each Supercharger vault accrues yield from two separate sources: liquidity provision and external yield farming. The external yield farming generates a base yield on the deposited funds and generally involves a low-risk auto-compounding strategy like lending. Moreover, the WOOFi liquidity provider or sPMM pool manager (i.e. Kronos Research) may then borrow up to 90% of the assets within the vault at a fixed rate to provide liquidity on WOOFi. The vaults automate the process of compounding interest by harvesting rewards and reinvesting periodically. Importantly, this single-sided pool is designed to eliminate the risk of impermanent loss as the WOOFi LP mitigates the divergence risk by hedging its exposure on WOO Network's centralized exchange, WOO X. The Supercharger vault has a 7-day settlement cycle, and there is a 24-hour time window after each cycle ends for the LP to settle loans based on user requests. Users can withdraw with no fee or limit (except when the vault is under settlement) and may withdraw once the settlement is complete. WOOFi sets aside 10% of the TVL each week for instant withdrawals, though applies a 0.3% withdrawal fee to prevent abuse of the system.

What fees are charged by WOOFi Earn?

WOOFi Earn vaults charge a 3% performance fee on harvest rewards. This 3% fee is then split up, with 2.5% used to buyback WOO token and distributed to WOO stakers and 0.5% used to cover the gas costs of harvesting and reinvesting. The fees are already included in the APY displayed for each vault.

What are the risks of WOOFi Earn vaults

Risks that are specific to WOOFi Earn's Supercharger vaults include a centralized component and hedging risk. The Supercharger vaults in its current form still have a trust element as the users allow the sPMM pool manager (i.e. Kronos Research) to borrow the deposited assets with no collateral and manage them by providing liquidity in WOOFi Swap. The sPMM pool manager uses its own trading strategy to stay market neutral so that users can always withdraw their initial deposit. However, there can still be a risk of losses during the hedging process due to a delay or reorg of the underlying blockchains.

WOOFi Earn Pools
WOOFi ETH Staking
4.5%
Yield
$1M
TVL
Risk
D
Protocol
WOOFi Earn
Chain
Arbitrum
WOOFi AVAX Staking
7.8%
Yield
$804K
TVL
Risk
D
Protocol
WOOFi Earn
Chain
Avalanche
WOOFi BNB Staking
7.2%
Yield
$647K
TVL
Risk
D
Protocol
WOOFi Earn
Chain
BNB Chain
WOOFi OP Staking
6.9%
Yield
$509K
TVL
Risk
D
Protocol
WOOFi Earn
Chain
Optimism
WOOFi USD Staking
0%
Yield
$125K
TVL
Risk
D
Protocol
WOOFi Earn
Chain
Arbitrum