WOWswap will launch on Ethereum mainnet and proposes Sushi to become its AMM partner.
WOWswap is a decentralized leveraged trading protocol that allows traders to use AMMs (Sushiswap, Pancakeswap, Quickswap) with leverage. When a trader uses WOWswap to buy a token, WOWswap provides additional liquidity to the trader, so the trader can buy more tokens. The swap transaction will go via Sushiswap generating additional volume and trading fees for Shushiswap’s LPs.
Benefits for Sushiswap:
1. Increasing Sushiswap trading volume. Every time a user choses to open a leveraged trade, part of the funds are borrowed from WOWswap lending pool and when a trade is done via WOWswap interface, the trade itself is routed via Sushiswap, therefore it increases trading volume for Sushiswap.
2. Increased fees for LPs. Leverage swaps can also generate several times more trading fees for Sushiswap’s liquidity providers.
3. No costs. WOWswap’s has an extremely complex system of over 150+ smart contracts, protected by Chainlink’s and DIA’s price oracles, which require a lot of resources to monitor, support, and update. By integrating WOWswap, Shushiswap will not incur additional costs.
4. Managed risks. Despite extensive security measures & external audit undertaken by WOWswap team, there is still a possibility for malicious attacks. By “soft-integrating” WOWswap via buttons/banners leading to a separate website – WOWswap.io, Sushiswap protects its brand and core product from additional risks associated with WOWswap but still keeps all the benefits listed above.
Proposed ways for UI integration: