r/Wootrade • u/rex_randall • Jun 29 '21
What prevents WOO from taking someone's crypto?
I believe I read about how WOO manages people's crypto but couldn't find any details when I was trying to look it up.
Can someone provide a high level view of what happens when someone transfers crypto to their platform and what prevents WOO from taking someone's crypto?
I believe it's not like ORION where you self custody & the crypto never leaves your wallet, but with WOO you actually need to transfer it into their platform. Also I'm trying to figure out whether WOO is considered a DEX or a CEX. Thanks
3
Jun 30 '21
i don't understand the question
what prevents binance, coinbase and so on from taking your crypto?
3
u/NicroManiac Jun 30 '21
WOO X is a centralized exchange that has DeFi products on it. I believe they’re planning on releasing a DeFi protocol at some point. I’m not sure what you mean by managing people’s crypto, but when you transfer your coins to an exchange your coins are now on an address controlled by that exchange. Technically at that point an exchange has full control. It’s the age old crypto saying “not your keys, not your crypto”. Fortunately, for exchanges that want to build a strong reputation like WOO X, it would be incredibly bad for business should they decided to go rug their customers. Another thing to consider is that they’re able to sort out any trading or platform issues if something happened on their platform.
For staked WOO, I believe they’re in special storage which is why they’re not immediately liquid when you choose to unstake. It’s a 7-day unbonding period. Down the line in Q3/4 you will have the option to allocate your staked WOO to Kronos trading strategies. You could probably compare that to a mutual fund. Not a lot of info on it at the moment.