[WOOFi] [FINAL] [STIP - Round 1]


Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.

Applicant Name: @WOOFi

Project Name: WOOFi

Project Description:

WOOFi is the DeFi arm of the WOO ecosystem - a unique DEX that bridges the deep liquidity of our centralized exchange WOO X onchain. With WOOFi, anyone can move assets across major chains, swap assets with the best price, earn single-sided yield, and share 80% of all protocol revenue. We also just recently launched WOOFi Pro on testnet - a gasless perp orderbook decentralized exchange platform with high performance and institutional grade liquidity.

Team Members and Qualifications:

Jack - Co-founder of WOO
Kevin - WOOFi Lead, Product Lead
Alex - Tech Lead
Ben - Ecosystem Lead
George - Marketing Lead
Chris - Social and community, Wassie of WOOFi
Abby - Business development and partnerships

WOO Network has over 180 full-time employees.

Project Links:

Website: https://fi.woo.org

WOOFi Pro (testnet): https://testnet-dex-evm.woo.org

Twitter: https://twitter.com/_WOOFi

Docs: Introduction - WOO Learn

GitHub: WOO Network · GitHub

DeFiLlama: https://defillama.com/protocol/woofi

DappRadar: https://dappradar.com/dapp/woofi

Discord: WOO Network

Lens: https://lenster.xyz/u/woofi

Contact Information

TG: @woo_english

Twitter: @_woofi

Email: woofiofficial@woo.network

Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes


Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size: 1,000,000 ARB

Grant Matching: 80% of all swap fees is consolidated from all chains and distributed on Arbitrum on a weekly basis. In addition, we will contribute WOO tokens to amplify the campaigns and fund additional development work through bounties where needed

Grant Breakdown:

Instead of simply incentivizing more TVL, WOOFi will divide the grant into a few categories to benefit Arbitrum users. For details of each category, please refer to Section 3.

Funding Address: 0xC8b2b7A07892644a71cc42eEC809b7A4296a715A

Funding Address Characteristics: It’s a 3 out 5 safe on Arbitrum created exclusively to receive the grants so the funds are separated from WOOFi’s treasury, the signers are identical as the WOOFi treasury multisig.

Contract Address: To be provided at a later stage.


Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.


  • Onboard the users of our centralized exchange WOO X into Arbitrum
  • Recruit on-chain users into Arbitrum through WOOFi cross-chain swaps and campaigns
  • Support the growth of Arbitrum dApps through our cross-chain swap widget
  • Up the user transaction count on Arbitrum to generate more sequencer revenue
  • Reinforce Arbitrum as WOOFi’s go-to chain for new and innovative product launches

Key Performance Indicators (KPIs):

  • Grow WOOFi Arbitrum TVL and Monthly trading volume by 200%
  • Increase the number of users that onboard Arbitrum using WOOFi cross chain swaps by 200%
  • Achieve at least 3 inter-protocol integrations that benefit Arbitrum users
  • Launch WOOFi Pro mainnet with Arbitrum as the main deposit vault

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:

Within the WOO ecosystem reside more than 120,000 registered and active CEX traders that consistently move $150m-$400m in daily volume. Being the decentralized arm of the WOO ecosystem, WOOFi enjoys a fortunate position as the go-to entrypoint into DeFi for these traders. Provided we qualify for a grant, we can funnel these users onto WOOFi and intro Arbitrum through a combination of incentives deployed in the swap, stake, and earn components of our DEX. The more ARB rewards we qualify for, the greater leverage we’ll have to make Arbitrum the de facto on-chain hub for our ever-growing number of CeFi users who can elevate the ecosystem’s trading volume and daily transactions.

Beyond the wealth of CeFi traders that WOOFi has at its disposal to onboard into Arbitrum, WOOFi can bring in a swathe of new users from other Layer 2s. We will do this by using the grant to lead large-scale campaigns that incentivize users to cross-chain swap into Arbitrum from Ethereum, Linea, Base, Optimism, and other chains we support. This is a playbook we have already used to great effect in our 5-day Arbitrum adventure which was responsible for onboarding 7,000 users into Arbitrum in less than 2 hours. Few other protocols can say they have brought as many users into Arbitrum as WOOFi, now having facilitated 1.1M cross-chain swaps into Arbitrum. A grant will help to multiply this number as we host campaign after campaign with a wide array of partners such as Layer3, Galxe, Intract, QuestN, and more.

They say a rising tide lifts all ships, and our soon-to–be-launched cross-chain swap SDK will do exactly that for all Arbitrum protocols. By integrating with our solution, any Arbitrum dApp can have their very own widget that enables their users to swap any asset from any major EVM chain into any asset on Arbitrum. Provided we receive a grant, we will utilize a portion of this ARB to cross-market with and promote Arbitrum dApps that leverage our widget, rewarding users of their front ends who move assets into Arbitrum. By upping the visibility and accessibility of these promising Arbitrum dApps through our multichain onboarding solution, we can spur a new wave of users to explore and infiltrate every single vertical of Arbitrum.

Lastly, we will leverage this grant to ensure widespread usage of new and exciting WOOFi products deployed exclusively on Arbitrum, reinforcing that Arbitrum is our chain of choice for innovation. WOOFi started to become heavily Arbitrum-centric in May with the launch of WOOFi Stake 2.0, and we will take our relationship to the next level in October when we deploy the first vault of our new flagship orderbook trading product on Arbitrum. In the event that we are rewarded with a grant, we will use some of the ARB to propel the adoption of WOOFi Pro with incentives, setting in stone Arbitrum’s reputation as the default ecosystem for on-chain traders who seek high performance and unmatched execution.

Justification for the size of the grant:

Unlike other protocols in the ecosystem, WOOFi is in a unique and privileged position to bring Arbitrum a vast influx of new users from across both CeFi and other EVM chains. In addition, we have the capability to catalyze the growth of promising Arbitrum dApps through our cross-chain swap SDK as well as feature them in multiple large-scale and effective campaigns subsidized and organized by ourselves. Our ambition is to move on multiple fronts and go far beyond just incentivizing trading and LP behavior - something which any protocol in the ecosystem can do.

We seek to champion Arbitrum, single-handedly move the needle for new user growth, and ultimately converge our two ecosystems to make Arbitrum part and parcel of the WOOFi brand. By the time our last ARB has been deployed, we will have led 100,000+ WOO X traders into Arbitrum and motivated countless more on-chain users now exploring other L2s to make Arbitrum their forever home. We recognize these are no small goals, which is why we ask for no small amount of ARB.

Execution Strategy:

Arbitrum inbound cross-chain swap incentives (15%)

Incentivize users from the other ecosystems in which WOOFi is deployed to move their assets into Arbitrum. Methods may include but are not limited to:

  • fee refund for cross-chain swapping into Arbitrum
  • reward users to cross swap into Arbitrum eco tokens with assets on other chains
  • rewards for users who enter Arbitrum through dApps that use WOOFi’s cross-chain SDK

Swap incentives (10%)

Encourage the 120,000+ traders of our CEX to go onchain and make Arbitrum their go-to chain when swapping with WOOFi. This will boost both Arbitrum’s overall trading volume and user activity. Methods may include but are not limited to:

  • rewards for users who swap with WOOFi’s liquidity on Arbitrum through brokers
  • volume-based rewards for users who swap on Arbitrum through WOOFi’s front end

WOOFi Pro incentives (20%)

Incentivize our 400K MAU to deposit in the Arbitrum vaults of WOOFi Pro and trade. WOOFi Pro will be framed as an Arbitrum product first and foremost, showcasing to the world that Arbitrum is the logical choice for onchain traders hunting a gasless platform with the execution of a CEX and self custody of a DEX. Incentivized pairs will include:

  • ETH - PERP
  • BTC - PERP

(Rewards will be distributed on a periodical basis according to the rules).

WOOFi Earn rewards (30%)

Scale up WOOFi’s capital efficient sPMM liquidity on Arbitrum to provide even better price and slippage for on-chain swappers. Increase Arbitrum TVL by making it an even more attractive ecosystem for providing liquidity through all-new WOOFi Supercharger vaults incentivized by ARB rewards. New users from other chains will be drawn into Arbitrum as they seek to earn leading single-sided yield.

Rewards will be allocated to WOOFi Supercharger vault (including ETH, USDC, ARB and wstETH) and automatically distributed via the smart contract every second.

WOOFi Stake rewards (15%)

Incentivize new users to stake their WOO on Arbitrum, motivate existing WOOFi stakers on all 5 other chains to interact with Arbitrum more frequently, and reinforce that Arbitrum is the de facto hub of WOOFi staking and WOO token liquidity. Rewards will be added on top of the swap fees and distributed via the rewarder smart contract every second.

Quests and cross-protocol integration (10%)

Reward users who take part in large-scale arbitrum campaigns led by WOOFi to incentivize integration between Arbitrum eco projects. The goal of this part is mainly to facilitate collaborations between Arbitrum ecosystem projects. We would organize campaigns involving other Arbitrum projects with the purposes of 1) attracting users from other ecosystem and incentivizing participation; 2) raise the awareness of integration (existing and new) between WOOFi and other Arbitrum projects that could benefit users. (Rewards will be distributed on a periodical basis according to the rules).

Details of each transaction from the grant multisig wallet will be reported.

Grant Timeline: October 2023 ~ January 31, 2024 (can be extended up to 6 months)

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream? Yes


Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the Protocol Native to Arbitrum?: While WOOFi is deployed on multiple blockchains, we picked Arbitrum as the base for our staking function which lies at the center of its value capture. All swap fees generated on various blockchains are consolidated onto Arbitrum on a weekly basis and distributed to stakers. In addition, our new product WOOFi Pro will have its first deposit vault deployed on Arbitrum when it goes live on mainnet in October.

On what other networks is the protocol deployed?: Ethereum, Optimism, Base, Linea, Polygon PoS, Polygon zkEVM, zkSync, BSC, Avalanche, Fantom

What date did you deploy on Arbitrum?: November 1st, 2022

Protocol Performance:

Key overall milestones achieved:

  • $6.6B total trading volume (top 10 daily volume on DeFiLlama)
  • 650K unique monthly active wallets (top 5 on DappRadar)
  • 3.3M+ cross-chain swaps executed
  • $1.5M swap fees distributed to WOO stakers


  • $1.1B+ trading volume on Arbitrum alone, having achieved greater than $100M 30-day volume
  • 1.1M cross-chain swaps involving Arbitrum
  • 11K WOO holders on Arbitrum
  • 50M WOO staked on Arbitrum
  • Led and subsidized a 5-day quest with Radiant, GMX, and Beefy Finance that onboarded 10,000 total users into Arbitrum

WOOFi trading volume on Arbitrum

% of cross chain swap involving Arbitrum (internal dashboard)

WOOFi’s Arbitrum TVL - $12.54M

Arbitrum is the most used chain of WOOFi and has seen more cross-chain swaps than any other network. As a result, WOOFi is one of the top 5 dApps ranked by monthly active wallets.

WOOFi distributes 80% of its swap fees to stakers. Since the launch of WOOFi’s omnichain staking in May 2023, 36.3% of the total staked WOO (~50M) is now on Arbitrum, making it the chain with the most WOO staked. All the swap fees are distributed on Arbitrum too which means all 3,500+ and growing users of WOOFi Stake must interact with Arbitrum to collect their rewards.

WOOFi stake Dune dashboard

Protocol Roadmap:

key features / upgrade in Q4 2023

  • Cross-chain swap any token across supported networks
  • WOOFi Pro mainnet launch with Arbitrum deposit vault
  • Supporting more assets in the sPMM liquidity such as wstETH
  • WOOFi swap v3

Audit History:

Audit and bounty details:

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Dashboards for your incentive program?: Yes, wherever possible

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
Yes, we will provide the key metrics on a bi-weekly basis. also the details usage of all the grants.

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: Yes


You have $1.82m TVL and daily volume of a similar amount and you want 1m ARB tokens?

I think that is a bit too much. Good to see you are willing to giveaway your WOO token as dual rewards though.

This is operational costs. Not valid.

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Thanks for the comment. WOOFi’s sPMM focus on capital efficiency rather than big TVL, although our TVL on Arbitrum currently is around $12.5M if you include swap, earn and stake.

According to the grant requirement protocols should achieve either TVL or volume. As you can see on DeFiLlama WOOFi is No.7 in accumulative volume on Arbitrum. and consistently hit over $100M volume since March 2023.


WOOFi continues to put up extremely high volume numbers and has time and time again shown its support for the arbitrum ecosystem.

love it


The proposal makes a lot of sense for the Arbitrum ecosystem.

  • WOOFi has been responsible for $1.1B in trading volume since its launch on Arbitrum, ±$100M per month. Most of their volume comes from aggregators routing through their liquidity, meaning that WOOFi is not only responsible for the swaps on their Front-end but is also behind 1inch, Paraswap, OpenOcean, … covering 5 - 10% of their Arbitrum txs.

  • They are committed to the chain and consider Arbitrum as the go-to chain when deploying their new products. The Stake 2.0 vault made Arbitrum the chain with the most WOO stakers and forced the remaining holders to use Arbitrum to collect their rewards.

  • The feature I’m more bullish on is WOOFi Pro, an institutional-grade perps DEX to onboard sophisticated HTF traders on-chain. This is the first protocol enabling HFT on-chain through Arbitrum. Professional traders/trading desk are generating billions per day on CEXs and WOOFi Pro chose Arbitrum to be the gateway for all those sophisticated traders. With the right incentives the activity on Arbitrum could skyrocket (just check dYdX).


I think this proposal will have a significant impact on the Arbiitrum ecology. WooFi’s current growth rate is astonishing, and WOOFi has many advantages in terms of products and has many cefi users. If the donation proposal is successful, it will inject more vitality into the Arbiitrum ecology and bring more benefits to Arbiitrum. Bring in more users to promote the prosperity and development of the arbitrum ecosystem


Fan of this proposal, especially the incentives for cross chain swaps into Arbitrum.


Hello @WOOFi thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.


WooFi has been a close partner with Trader Joe since early on, and their commitment to Arbitrum can be seen clearly in this proposal


WOOFi is poised to significantly contribute to the sustainable growth of the Arbitrum ecosystem. The grant allocation is straightforward, ensuring a clear distribution of benefits across various facets of the ecosystem.

In support of this proposal!


Our experience with the WooFi team has been really good, boosting our confidence that they’ll put the grant to good use, ramping up user engagement and liquidity on Arbitrum. They’ve got a solid base and a knack for rallying a community, which speaks volumes. We’re all in full support of their proposal and can’t wait to keep the collaboration going, bringing more users and liquidity into the Arbitrum mix


WooFi is working on interesting things; solid builders I believe.

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WooFi is building an innovative DeFi suite of products - the most exciting being WooFi pro.

We at Stella believe that the grant incentives can definitely help get more traction of their products - especially Woofi Pro. We support the grant proposal by Woofi!

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Can you elaborate on this point and do I understand that this 10% is for LM campaigns or am I wrong?

If so, how will the campaigns be selected and will it be only with new integrations?

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The goal of this part is mainly to facilitate collaborations between Arbitrum ecosystem projects. We would organize campaigns involving other Arbitrum projects with the purposes of 1) attracting users from other ecosystem and incentivizing participation; 2) raise the awareness of integration (existing and new) between WOOFi and other Arbitrum projects that could benefit users

As far as I know, WOO is one of the only CeDeFi exchanges working to support Arbitrum’s progress as the leading L2 ecosystem. The asking grant of 1m ARB will allow WOO to lead bigger campaigns and bring more CEX users to Arbitrum. With fee refunds and rewards for current WOO users, they may be incentivized to use Arbitrum and understand how WOO can integrate the best of CEX and DEX experiences together. I believe the current Arbitrum-specific metrics prove that WOO is aligned long term with Arbitrum’s success and that this grant will allow the WOO team to push this progress forward.

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Woofi’s perspective on utilizing the grant to funnel users from CeFi to DeFi, particularly onto Arbitrum, holds substantial merit.

Your strategy to encourage swaps into Arbitrum from other chains and ecosystems through large-scale campaigns, and your intention to integrate with dApps to increase visibility and usability on Arbitrum, clearly indicates a strategy designed for comprehensive ecosystem growth.

Having worked with WooFi on a previous campaign, I can say from experience they are a professional team and a net benefit to have in the ecosystem. This proposal is definitely worthy of consideration from delegates.


Hello @WOOFi ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

Once you change your proposal title to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness.

Once marked as [Final], your application post will be locked by moderators and you will no longer be able to edit your proposal.

@WOOFi Here is the updated process for changing your title.

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

Firstly, thank you for your detailed proposal and your interest in contributing to the Arbitrum ecosystem.

Introduction and Rationale

WOOFi aims to expand its decentralized financial services on Arbitrum by dividing the grant into several categories, including swap incentives and rewards for various WOOFi features. The proposal seeks to grow Total Value Locked (TVL) and transaction volume on Arbitrum, attracting new users through WOOFi’s cross-chain capabilities and strengthening Arbitrum as WOOFi’s primary chain for launching new products. We appreciate WOOFi’s steady growth and daily volume on Arbitrum, as well as their unique approach of incorporating centralized exchange (CEX) elements to boost adoption. Overall, we find the proposal largely aligns with our objectives for enhancing the Arbitrum ecosystem.

Major Concerns

Concern Regarding Grant Allocation

  • Some categories, like WOOFi Earn, might receive too large a share of the grant
  • WOOFi Pro is still in testnet, yet it’s allocated a significant part of the grant
  • Our recommendation for change: We suggest reducing the grant, particularly cutting 10% each from WOOFi Pro and WOOFi Earn

Minor Concerns

  • Relatively low TVL compared to other DEXs
  • Lack of data on how much of WOOFi’s total revenue comes from swap fees
  • Our recommendation for change: Increase incentives for cross-chain swappers to Arbitrum and focus less on WOOFi Earn, which is not yet fully part of the Arbitrum ecosystem.


Castle Capital appreciates the efforts put forth by WOOFi and the unique financial services they offer to enrich the Arbitrum ecosystem. While we are generally in support of the protocol, we believe the grant request needs to be lowered and refocused for immediate impact.

Our recommendations can be summarized as follows:

  • Reduce the grant size and reallocating the funds to more immediate Arbitrum-centric initiatives.
  • Increase incentives for cross-chain swappers to Arbitrum to boost adoption more rapidly.

We hope our comments serve as constructive feedback for the refinement of your proposal, all aimed at benefitting the broader ecosystem. Thank you for considering our suggestions.

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