Their website explains it best. You probably already hit on it
Wavetrac® Differential - A torque biasing differential with a difference

This is the crux of it, though
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Precisely engineered wave profiles are placed on one side gear and its mating preload hub. As the two side gears rotate relative to each other, each wave surface climbs the other, causing them to move apart.
Very quickly, this creates enough internal load within the Wavetrac® to STOP the zero axle-load condition.

The zero axle-load condition is halted, and the drive torque is applied to the wheel on the ground (the gripping wheel)… keeping the power down.

Some gear differentials rely solely on preload springs to combat loss of drive. The drawback is that you can’t add enough preload to prevent loss of drive without creating tremendous handling and wear problems at the same time. So, to avoid these problems, the preload from ordinary spring packs must be reduced to a level that renders them ineffective at preventing loss of drive. The Wavetrac® is the only differential that can automatically add more load internally when it’s required.

In the case where both wheels are on the ground during zero axle load, such as during a transition to deceleration, the Wavetrac® device is able to prepare the drivetrain for when the zero torque condition stops, eliminating the delay seen with ordinary gear diffs.

What this means for you as a driver is that power is delivered to the gripping wheels for more time and in a more constant manner – making you faster and improving stability.
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Negative, American Vernon Gleasman would have that patent as they invented the technology. ;) There are a few other diff companies that have used this technology True-Trac, Eaton, Qualife to name a few

Well after a lot of deliberation I decided on the Quaife and its in the mail now. I almost chose the wavetrac but decided against it when I saw that I would need 2 shafts ($140 each) in addition to the higher price of the differential itself. I'll post up a review in a few weeks once I get it installed and have some seat time with it.

you definitely dont need 2 shafts. you dont even need a single new shaft. you can use your stock shaft and have it machined an inch off and it'll work just as well. your loss! i only know because i believe i'm the first person that pieced together a wavetrac on the boards :icon14:

Hmm, I'm not doubting you about that but why does the wavtrac website list them as required parts? Annoying, but I'm sure the Quaife is going to be hell of a lot better than the open diff I've got now...

ah didnt know you had an open diff. in that case, you would need to machine both your stock stubs

here's the post (definitive differential thread) for anyone who needs help in the future where i posted the differences

http://www.the370z.com/engine-drivet...ml#post3108999