WOO X expands designated market maker program; adjusts fees to deepen engagement with top-tier liquidity providers

10+ new market makers now support 60%-70% of futures volumes as WOO X cuts spreads, adds new listings, and deepens liquidity

Tl;dr

• WOO X has expanded its designated market maker (DMM) program, securing a roster of top-tier liquidity providers across more than 135 perpetual markets
• Access instant maker volume data from our new Live DMM dashboard
• Market makers Wintermute and Selini Capital are among the top DMMs on WOO X, further diversifying liquidity
• Fees for taker orders on perps will see a slight increase with the introduction of DMM rebates, leading to tighter spreads and a lower cost of trading
• Recent strategic shifts at WOO X are poised to ensure a consistent 100% custody ratio by the second quarter of 2024

Starting December 13th, WOO X will take the next step in a series of improvements as it continues to onboard a growing roster of top-tier liquidity providers. This step follows the launching of the DMM program in August, as WOO X breaks away from dependency on a single market-maker and enhances its readiness for the anticipated growth in 2024. As more market makers are onboard, WOO X anticipates spreads to tighten and overall trading costs to decrease.  

Sustainable business model

“We've introduced a new fee and rebate structure as we continue to align with all participants in our growing ecosystem, driving user growth and enhancing the overall trading experience. The primary objectives remain cutting spreads, introducing fresh listings, deepening liquidity, and ensuring our users receive a top trading experience on WOO X,” said Ben Yorke, WOO VP of Ecosystem.

Above: WOO X fees for taker orders on perps will see a slight increase with the introduction of DMM rebates, leading to tighter spreads and a lower cost of trading

The supplementary taker fees will provide rebates to designated market makers, empowering them to minimize spreads and amplify market depth, consequently enhancing overall price execution—a sustainable approach for a more effective business model. Note: These changes will take effect around 09:00 AM UTC on WOO X.

WOO X also launched its Live DMM Dashboard which shows the maker volume and share of volume for each DMM. This gives clients additional transparency into the various counterparties on WOO X, allowing them to observe the diversification of liquidity better.

Above: Screenshot of maker volumes from the newly launched designated market maker page.

Dependency on a single market maker has been surpassed

After launching in 2019 with a single market maker model, WOO X has often been targeted by critics for the use of third-party exchanges as a source of liquidity. Given the early successes of the revamped model, WOO X is excited to announce that by Q2 of 2024, liquidity provision on WOO X will fully transition away from this model for both spot and perps, resulting in a custody ratio of 100%. More information on this will follow in early Q1. 

Onboarding the best 

WOO X is also pleased to announce that leading market maker Wintermute has joined the DMMs providing liquidity to WOO X.

“Transparency and reducing counterparty risk are the utmost priorities for WOO X,” Co-founder Jack Tan noted. “We as users are inherently distrustful of centralized financial systems, and the only way to inspire confidence is to work with partners who share our principles and integrity,” he added.

Above: Diversity of liquidity on WOO X has been on a sharp rise since August, with DMMs now contributing about 70% of all maker volume on perps

"Wintermute's commitment to creating efficient and liquid markets in digital assets aligns with WOO X's focus on superior execution and advanced trading features. Our expertise in providing robust liquidity complements this collaboration grounded in our shared commitment to transparency, which is critical to building trust in centralized crypto trading products," said Evgeny Gaevoy, CEO and co-founder of Wintermute.

Aside from Wintermute, other leading market makers, including Selini Capital and Black Code Group are now supporting WOO X. Selini Capital has consistently contributed 15-25% of all maker volume on perps, showcasing their remarkable trading capabilities.

For DMMs looking to get involved, they can visit the dashboard and contact us directly to learn more. In addition to the main program that has a 7.5% volume share minimum requirement, a smaller program specifically for altcoins is being launched with a 2.5% minimum requirement. Please reach out if you may be interested.

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