Integrate WOWswap's Leverage Trading Function

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.

WOWswap audit: https://hacken.io/wp-content/uploads/2021/06/WowSwap_03062021SCAudit_Report_2.pdf

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:

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SushiSwap has had several other protocols route their liquidity through them already, without the use of banners.

Is WOWswap looking to complement and integrate with Kashi as well?

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WOWswap is a very new protocol and much less popular than Sushi in terms of number of users and volume. So if WOWswap integrates with Sushiswap without any banners or links the effect for Sushi’s LP and trading volume will be very limited. We would like more people to know about decentralized leveraged trading options.

Regarding Kashi, I think it will be possible to integrate in future: for this Kashi needs to allow WOWswap to borrow funds (without collateral) to finance leveraged trades.

Another alternative way for native integration was proposed by one of our community members is to make a widget designed for Sushiswap website. When open it will offer users to buy Sushi token with leverage:

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