Written by: @ChingChaLong02
Mentors: @Zou_Block_ and_ @Erjiueth
In the first part of the Telegram track analysis report, we provided an overview of the entire Telegram Bot track. This chapter will delve into the projects to understand the current development status of Telegram trading bots and predict their future trends. Given the leading position of Banana Gun in the track (total trading volume), we hope to use a valuation model to verify the actual market value and token price of the Banana Gun project.
At the same time, considering the recent active performance of the Solana ecosystem, we will also explore BonkBot as an emerging project, which has attracted a large number of traders to participate in the meme coin trading frenzy on the Solana platform. We will also discuss some future prospects for the entire Solana Telegram trading bot track. In addition, due to the recent craze for Bitcoin inscriptions, a Telegram bot specifically for trading BRC-20 has emerged. This article also aims to understand its model and development.
1. Unibot
Since the spontaneous issuance of tokens by Unibot, the token price has risen from a low of $3.13 in May to a high of $200.45 in August, nearly a 100-fold increase. Within just two months of its release, it generated over $6 million in revenue. This significant financial performance and rapid increase in token value have greatly increased people's interest in the Telegram bot field, triggering a widespread speculative frenzy surrounding Telegram bots.
Users can easily interact with Unibot through conversation to execute on-chain token trading instructions, completing various trading activities on Uniswap. This includes token exchange, copy trading, limit orders, and private transactions, among other functions. In addition, Unibot also provides real-time alerts for new Ethereum tokens, allowing users to easily add new tokens and quickly engage in sniper trading.
1.1 Historical Event K-Line Chart
In the early stages, the Unibot project initiated a token buyback plan to maintain market liquidity. However, during the migration period of Unibot V2 in July, the project team canceled the token burning function as they found that this measure hindered liquidity growth. As a new strategy, the project team reissued the burned tokens and paired them with Unibot/Eth, adding them to Uniswap V2 to enhance liquidity depth.
At the end of the same month, Unibot launched UnibotX, which supports trading in the form of an order book, providing broader trading liquidity for various tokens not listed on major exchanges.
Despite encountering a bear market for Telegram bots later on, and the token price plummeting, the project took advantage of the Friend.tech trend in September and successfully launched its keys trading feature.
In January 2024, Unibot expanded to the Solana platform, capturing a large trading volume amidst the meme coin frenzy on Solana.
1.2 Economic Model
On May 17, 2023, the project achieved a fair launch of the token, issuing a total of 1 million tokens, all of which became fully tradable from the date of issuance.
Currently, Unibot primarily generates revenue in two ways: through bot transaction fees (Bot Fee) and the trading tax of the native token UNIBOT.
The former involves Unibot charging a 1% fee for each transaction, with 40% of it distributed to token holders. The latter refers to a 5% tax on all UNIBOT token transactions, with 1% of the trading volume distributed to token holders, and token holders with a balance of over 50 UNIBOT being eligible for income sharing rewards.
1.3 Future Prospects
(1) Over-reliance on token trading tax
From the current data analysis, it is evident that approximately 80% of Unibot's revenue comes from token trading tax. The project's design requires users to pay a 5% trading tax when transacting $UNIBOT, resulting in users actually bearing a cumulative 10% tax during buying and selling, making it the main source of income for the project. However, this also implies a potential issue: the fees collected through bot services may not be sufficient to sustain its basic income.
Taking Banana Gun as an example, the project has achieved stable income generated through bot services and surpassed the trading tax, thus transitioning to a 0% token tax model. In the long run, the challenge for Unibot is how to capture more value through bot transaction fees, as this is the core business of the project. Over-reliance on token trading tax as a source of income is not conducive to the project's long-term sustainable development.
(2) Unibot on Solana
Unibot has also announced the launch of a similar Telegram bot on the Solana platform. Leveraging its advantage as a well-established project, it features the following prominent functions:
Built-in cross-chain bridge for ETH and SOL: Essentially merging the original Unibot on Ethereum with the one on Solana, becoming the first bot project to support both chains simultaneously.
Collaboration with the trading data aggregator platform Birdeye: Seamless support for all projects displayed on Birdeye for trading. This is considered the ultimate feature to enhance user experience and a crucial turning point for UniBot's future success in the Solana market.
1.4 Protocol Performance
The trading volume launched on Solana has significantly exceeded that on Ethereum within a week, even tripling it. This is a promising development for the long term.
2. Banana Gun
Banana Gun is one of the popular Telegram trading bots in the market. It offers two main services: trading and sniping. Through the trading function, users can securely purchase tokens listed on the Ethereum blockchain. The sniping function allows users to be the first to buy during the release of new tokens. Banana Gun has recently expanded to Solana from initially supporting only Ethereum. Here are some detailed insights into its features:
First Bundle or Fail (FoF):
Aims to purchase at the first block (0 block) of a trade, requiring at least 10 wallets to participate for it to be effective. Not applicable to MEV or Deadblock releases.
FoF Backup:
If the FoF function does not trigger during an MEV or Deadblock release, the backup function will make the purchase in the next available block and use a backup miner fee.
Slippage:
Allows price fluctuations in the range of 0-99% in releases without a maximum trade limit. Setting it to 100 is equivalent to "infinite" slippage.
Degen Mode:
Enables the purchase of trades acting as "honey pots" to deter zombie users. If this setting is enabled, the bot will ignore the safety tax setting and can make purchases even if the token is unsellable.
Max Transaction or Revert (MaxTx or Revert):
Limits purchases to the maximum expenditure. If the maximum trade amount of the token exceeds this amount, the transaction will be reverted.
Minimum (MinToken):
Sets the minimum token quantity or percentage for purchase. If the maximum expenditure does not meet this minimum value, the transaction will fail.
Anti-Rug Mechanism:
Attempts to sell tokens when the tax exceeds the safety setting or when there are signs of fraud.
Transfer on Blacklist:
If a user's wallet is blacklisted, this function transfers the tokens to a designated "transfer wallet."
Pre-Approve:
Automatically approves tokens after sniping for faster selling.
Snipe Settings:
Allows adjustments to the current snipe settings without affecting other pending or future snipes.
2.1 Historical Event K-Line Chart
Smart Contract Vulnerability Leads to Price Drop (September 11, 2023):
A few hours after the airdrop, a smart contract vulnerability allowed users to sell their assets while still retaining tax tokens in their wallets, causing the price of $BANANA to plummet to $0.03.
User Milestone Achieved (October 20, 2023):
As Banana Gun reached an important milestone of 30,000 permanent users, it also marked the beginning of a period of price increase.
Peak Trading Volume (November 27, 2023):
The price continued to show an upward trend, and on November 27th, Banana Gun reached a peak daily trading volume of $18 million, demonstrating the project's high activity.
Listing on Centralized Exchange (December 5, 2023):
$BANANA was listed on Huobi.
2.2 Token Distribution
The initial token issuance price was $0.65, and it has since increased by approximately 20 times.
The team's shares will be unlocked in two phases: the first phase will start in 2025 and last for 3 years, accounting for 5% of the initial token supply. The second phase will start in 2031 and also last for 3 years, accounting for 5% of the initial token supply.
2.3 Protocol Revenue Source / Token Use Cases
Bot Transaction Fees: Fees are charged for trading using Banana Gun's bot services.
(1) Manual purchase transactions are charged a 0.5% fee; (2) Automatic snipe transactions are charged a 1% fee.
From all collected bot transaction fees, 50% is distributed to token holders. This provides passive income to holders, incentivizing the use of the bot for trading.
Additional Cashback: Users who trade through the bot are entitled to additional cashback.
The cashback amount is calculated using the following formula: paid fee * multiplier, where the multiplier ranges from 0.05 to 1. This means the cashback amount can reach up to 100% of the paid fee, depending on the random multiplier value.
0% Token Tax Model:
Banana Gun recently announced a significant adjustment to its fee structure, transitioning to a 0% token tax model. This decision was influenced by various factors. Initially, the project used token tax as a source of income during the bear market when the activity of its profitable bots was not as high. As market conditions improved and bot income began to consistently exceed tax revenue, the project reevaluated its approach.
However, considering that the funds for token buybacks by the project were mainly sourced from token tax revenue in the past, the project has currently suspended such buyback activities. In the future, $BANANA token holders will play a more crucial role, directly participating in the decision of whether to continue the token deflation strategy.
On the other hand, the removal of token tax is seen as a strategic move to enhance the project's attractiveness and efficiency. The advantages of this new model include increased trading volume due to the absence of trading fees, reduced slippage for traders, easier integration with centralized exchanges, and broader exposure for the token. This broader exposure is expected to attract more users to use the bot, creating a cycle of growth and participation.
After announcing this new measure, the annualized yield for $BANANA holders decreased to 21%, approximately one-third of the peak yield of 72%. However, a 21% annualized yield is still an attractive return for token holders. The removal of token tax is expected to increase bot trading volume, which should in turn increase the bot-generated transaction fees.
This strategy is expected to provide stable and substantial annualized returns in the long term. This approach seems to strike a balance between immediate income reduction and the prospect of sustained, healthy returns driven by increased bot activity and broader token adoption.
2.4 On-Chain Data
Through in-depth analysis of the on-chain data of $BANANA, we can gain detailed insights into the token's distribution and liquidity transfers, which are crucial for a comprehensive understanding of the overall health of the token. On-chain data provides key indicators for evaluating the health of any cryptocurrency, including the distribution of token holders, trading frequency, and trends in liquidity changes. Through this data, we can more accurately assess the token's market acceptance, holder diversity, and market liquidity stability, providing strong data support for investment decisions.
Apart from the top ten addresses, the data shows that close to 60% of the tokens are locked in the UNCX Network, and 10% of the team tokens are also locked. It's important to note that over 70% of the liquidity remains unlocked, indicating the need to monitor future linear unlocking schedules.
The chart above shows the token distribution of $BANANA, indicating that even the top ten holders each hold less than 1% of the tokens, suggesting that the tokens are not overly centralized or susceptible to malicious manipulation.
Since December, the number of smart money addresses has steadily increased, leading to an increase in the total holdings of smart money from 56,143 to 71,327.
In comparison, the top ten holders of $UNIBOT hold a higher proportion, totaling nearly 20%.
In summary, the token distribution of $BANANA shows a certain degree of dispersion and health, despite some locked tokens, and the trend of "smart money" also shows an upward trend.
2.5 Comparative Analysis
To more accurately estimate the fair value of $BANANA, we used comparative analysis, selecting blockchain projects similar in scale and nature to $BANANA for comparison. The main evaluation indicators of interest include Price-to-Sales (P/S) ratio and Price-to-Earnings (P/E) ratio. The selected projects include two categories: trading bot projects similar to $BANANA, such as Unibot and Maestro Bot; and decentralized exchange projects, including Uniswap, Sushiswap, and Pancakeswap. Considering the correlation between trading bot projects and decentralized exchanges (the former being replicas of Uniswap), this increases the reliability of the comparative analysis. Through such comparisons, we can more accurately assess the market value and investment potential of $BANANA.
The analysis above shows the valuation of different projects based on the Price-to-Earnings (P/E) ratio and Price-to-Sales (P/S) ratio. As the operating time of the three trading bot projects has not yet reached one year, their expenses and income have been annualized for comparison.
In this scenario, Banana Gun's annualized total revenue reached $21.08 million, demonstrating its outstanding revenue-generating ability. Particularly noteworthy is that due to the project's mechanism providing a relatively high proportion of income to token holders, the annualized total income of its token holders also reached $9.22 million, which is outstanding compared to similar projects such as Unibot and Sushiswap.
Furthermore, from the perspective of the P/E ratio, Banana Gun's ratio is relatively lower compared to the average of similar protocols, implying that its value may be underestimated by the market.
After valuation, based on the P/S ratio, the potential price range of $BANANA is calculated to be $10.12 to $10.37. Similarly, based on the P/E ratio analysis, we estimate the potential price range of $BANANA to be $13.73 to $23.52.
2.6 Future Outlook
（1）Listing on Solana
Source: Banana Gun Twitter
Banana Gun has also launched its Telegram bot on the Solana platform, following in the footsteps of Unibot. Unlike its cross-chain service with SOL/ETH, on Solana, Banana Gun chooses to reward $SOL to $BANANA holders. Users can connect a Solana-supported wallet to claim these rewards.
Source: Dune Analytics @whale_hunter
The data above indicates that a week after launching on the Solana platform, there was a strong user response, attracting approximately 1,700 new users, with the total number of users exceeding 4,000 on the same day. This achievement is attributed to an important promotional strategy: users can earn 50% of their trading fees by referring new users on the Solana chain in the first two weeks.
For example, in the first week, if the trading bot earned a total fee of $400,000, with $300,000 coming from referrals, Banana Gun will redistribute $150,000 to the referrers in the form of SOL tokens. This is a strategy by the project to attract new users in the early stages, and its success is also reflected in this data.
Considering the price increase of Unibot after its launch on Solana, it is reasonable to expect that the value of $BANANA will also show an upward trend in the future.
For users holding $BANANA, providing significant income incentives in the initial two weeks is undoubtedly an attractive incentive mechanism. This strategy is likely to have a positive catalytic effect on the short-term price of the $BANANA token, sparking market interest and investment enthusiasm for the token.
In this way, the trading activity of the $BANANA token may significantly increase, thereby enhancing its market liquidity. This income incentive strategy may also attract new traders to enter the market, further increasing the market value of $BANANA.
（2）Partnership with DEXTools
Source: Banana Gun Twitter
The partnership between Banana Gun and DEXTools is a significant development for Banana Gun. DEXTools, known for its commitment to lowering the barriers to entry for the general public, has chosen Banana Gun as its partner. This is particularly bullish for Banana Gun for several reasons:
Increased Exposure and User Base:
The partnership with DEXTools, which has a large user base, significantly increases the exposure of Banana Gun. This may attract more users into the Banana Gun ecosystem, potentially leading to an increase in the number of token holders and active traders.
Increased Trading Volume:
By directly integrating Banana Gun's trading functionality on the DEXTools platform, DEXTools users can easily trade and execute limit orders. This convenience is expected to increase the trading volume of Banana Gun, enhancing the token's liquidity and market activity.
Enhanced Market Position:
This partnership strengthens Banana Gun's position in the market as a reputable and technologically advanced trading option. Being chosen by prominent platforms like DEXTools highlights the quality and reliability of Banana Gun's technology and security features.
Potential Price Appreciation:
Increased usage, higher trading volume, and enhanced visibility may lead to price appreciation of the Banana Gun token. As more traders and investors learn about and participate in Banana Gun through DEXTools, the demand for the token may increase.
3. BONKBot
BONKbot is a Telegram trading bot based on the Solana network, allowing users to trade in the simplest and fastest way. The token used in the project is $BONK, which was initially a free airdrop to the Solana community during Christmas 2022. Since then, the adoption of $BONK has grown exponentially, covering areas such as DeFi, gaming, and payments. As the official partner of the $BONK community, BONKbot provides users with a range of features:
Minimum Holding Value:
Users can set the minimum holding value displayed in their portfolio. Tokens below this threshold will be hidden. This feature is particularly useful when users do not want to sell certain tokens, even in the event of investment failure (commonly known as "being stuck"). Click to edit.
Automatic Buy-in:
When users paste a token address, the system immediately executes the buy-in operation, eliminating the confirmation step.
Button Configuration:
Users can customize the buy and sell buttons on the dashboard. When buying or selling tokens, simply click each button to edit.
Slippage Configuration:
Users can customize the slippage settings for buying and selling. Slippage is the difference between the trading price and the execution price, and proper configuration can help control trading costs better. Click to edit.
MEV Protection Feature:
BONKbot, in collaboration with Jito Labs, provides advanced MEV protection for users, which defaults to accelerating transactions and defending against front-running attacks. MEV protection offers two modes for users to choose from:
Turbo Mode: In this mode, transactions are sent through Jito to ensure front-running protection at the fastest speed. If regular transfer speed is faster, then MEV protection will not be initiated.
Secure Mode: This mode ensures transaction protection under any circumstances, even if it means that transaction speed may be slower. Users can speed up transaction speed by increasing the bribe amount.
When enabling the MEV protection feature, users can independently choose the above modes and determine the priority level of transactions: medium, high, or very high. For advanced users requiring more precise control, BONKBot also offers the option to customize transaction priority levels.
3.1 Historical Event K-Line Chart
$Bonk was initially a meme coin airdropped to Solana community members and later adopted by multiple projects. However, its significant price increase is mainly attributed to recognition and adoption by centralized exchanges. The listing on Coinbase and Binance, two major trading platforms, greatly propelled the development of the Bonk ecosystem and led to broader adoption.
Taking BONKBot as an example, it chooses to use $Bonk as the primary token for its trading platform and adopts a mechanism of using trading fees for token buyback and burn. This not only enhances the utility of $Bonk but also provides support for its value. In this way, trading activity not only supports the operation of BONKBot but also indirectly promotes a healthy cycle in the $Bonk economic model.
3.2 Economic Model
Source: Bonk Whitepaper
The above is the token distribution of $Bonk, and as a project that rewards $Bonk, BONKBot allocates 1% of the trading fees for the following purposes:
Source: BONKbot Documentation
30% goes to the team behind BONKBot
20% is used for referral fees
10% is used for immediate $BONK burn
10% is allocated for Bonk community contributions
10% is used for infrastructure costs and future development
10% goes to the BonkDAO multisig wallet
10% is used to fund BonkLabs
3.3 Protocol Performance
The trading volume and trading revenue of the protocol have also significantly increased with the hype of BONKBot for meme coins, with daily revenue reaching a high of $750K, but has recently declined.
The main trading pairs on BONKBot are SOL/PONKE, SOL/USEDCAR, SOL/OMNI, SOL/$WIF, SOL/BORK, which belong to various types of meme coins.
3.4 Future Outlook
（1）The Craze of Meme Coins in the Solana Ecosystem
The flourishing meme coin culture within the Solana ecosystem can largely be attributed to the influence and style of Solana founder Anatoly Yakovenko. A key moment marking Solana's embrace of meme coins was when Yakovenko appeared at the Solana Breakpoint event wearing attire representing "silly dragons," a friendly gesture to the meme coin community. This gesture highlighted Solana's welcoming attitude towards meme coins, fostering an environment for their thriving development.
Following this event, $Silly, as one of the leading meme coins on Solana, along with $Bonk, has gradually evolved into an important aspect of the Solana community culture. As long as this culture persists, tools like BONKBot, which facilitate quick and easy access to tokens, remain highly valuable.
This is especially true for speculative traders attracted to high-risk, high-return meme coin trading. The Solana market also sees the emergence of new meme coins such as $WIZ, PONKE, and others, and BONKBot's utility aligns perfectly with the speculative and dynamic nature of the meme coin market within the Solana ecosystem.
（2）Driving DEX Raydium on Solana
BONKBot has become a key catalyst for Raydium, as evidenced by the fact that approximately 95% of BONKBot's trades are conducted through Raydium's Swap feature. This correlation is further highlighted by data showing a significant increase in Raydium's locked volume with the growing trading volume of BONKBot, emphasizing the core role BONKBot plays in driving activity on Raydium.
Furthermore, any major updates to Raydium, such as the addition of new trading pairs, will directly benefit the development and utility of BONKBot. These enhanced features on the Raydium platform may expand BONKBot's trading capabilities and efficiency, further strengthening its importance within the ecosystem. The mutually beneficial relationship between BONKBot and Raydium indicates that the growth and evolution of one will promote the development of the other, creating a mutually beneficial dynamic that supports growth and vitality for both within the Solana ecosystem.
4. SolTradingBot
SolTradingBot is another mimicry similar to BONKBot. It also adopts the gameplay of Telegram Bot, but it has some special features, such as:
DEX Integration:
Integrated with major DEXs: SolTradingBot has integrated with Jupiter, Orca, and Raydium, the three leading decentralized exchanges on Solana.
Enhanced liquidity access: Users can access extensive liquidity pools on these DEXs to efficiently execute trades at the best prices.
Diverse token opportunities: Provides a wide range of trading options from established cryptocurrencies to emerging projects.
Multi-DEX strategy: Allows users to leverage the unique advantages of each DEX platform to optimize trades.
4.1 Protocol Performance
The project, as a newcomer, was only launched in December, but it coincidentally caught the peak of the speculative trading of Solana meme coins. In less than a month, by December 26th, its trading volume had surpassed UniBot and Banana Gun.
The highest trading volume tokens also include some popular meme coins, such as SOL/SFAR, SOL/OMNI, SOL/BORK, SOL/PONKE, and others.
4.2 Economic Model
Data Source: SolTradingBot Doc
Currently, there is only very preliminary information about token distribution. The data indicates that tokens are primarily allocated for liquidity funds.
4.3 Future Outlook
（1）Clear Roadmap
Although the functionality of SolTradingBot has not yet reached its most complete state, the project has established a clear roadmap and plans to complete it at different stages in 2024. For a Telegram Bot project that has already established itself in the market, continuing to improve the user experience undoubtedly helps to capture a larger market share in the future.
Source: SolTradingBot Website
Here are several key milestones considered crucial:
Comprehensive Ecosystem: Launching additional features such as advanced analytics, risk management, and portfolio tracking indicates a trend towards creating more powerful trading tools.
Innovative Features: Introducing the Sniper Monitor feature for precise trade execution may set SolTradingBot apart from its competitors, providing traders with a unique tool to enhance trade decisions.
Strategic Partnerships: Exploring further partnerships within the Solana ecosystem may lead to increased utility and integration, expanding the bot's coverage and capabilities.
Platform Evolution: Researching potential expansion to support new assets and additional DEX platforms.
(2) Positioning of SolanaTradingBot
In terms of functionality, the various projects are generally similar in the Telegram Bot space, so there is no need for two almost identical projects. Especially within the Solana ecosystem, this will be an area where many projects will want to enter or establish themselves in the future. Although SolTradingBot had a good start in its first month, it needs to clarify its market positioning. Considering that the project was launched relatively late, there is a risk of being overshadowed by BONKBot if its future roadmap cannot be realized.
5. BTCBot.pro
Solana and ETH use account models, while BTC uses the UTXO model, resulting in significant differences in related assets and ecosystems. In this section, we will elaborate on the innovative features of BTCBot.pro and the potential impact on users and the industry.
BTCBot.pro is a Telegram Sniper Bot product in the BTC ecosystem, launched on December 23, 2023. It currently focuses on minting and trading BRC-20 tokens and has introduced practical features to address current issues in the BTC domain.
Due to the significant differences between the BTC ecosystem and the ETH EVM and Solana ecosystems, its overall design logic also differs significantly. The BRC20 domain is currently divided into primary and secondary markets. In the BTC ecosystem, the primary market refers to the issuance of BRC20 tokens, while the secondary market refers to the trading of BRC20 tokens.
5.1 BRC20 Primary Market
Challenge 1: Delayed Block Confirmations
After submitting batch mints for confirmation, there is often a sharp increase in transaction fees, leading to transactions not being confirmed on the blockchain in a timely manner, resulting in users not receiving tokens after minting.
Corresponding Solution: BTCBot.pro's AutoBoost
BTCBot.pro addresses this issue by automatically monitoring and boosting transactions. It can identify mint transactions that are unable to be confirmed in the next block and bundle them together for boosting. This multi-stage bundling method significantly increases the likelihood of these transactions being confirmed in the next block, with a success rate of up to 99%. This brings the following benefits:
- Adapting to fluctuating transaction fee prices
- Ensuring blockchain confirmation of mints
- Ensuring users receive their tokens in a timely manner
Challenge 2: Inability to Refund
Despite users being able to ensure successful mints by paying high transaction fees, there is no mechanism for users to receive a refund if they do not receive the tokens due to delayed confirmations. As a result, users pay high transaction fees but may not successfully mint tokens.
Corresponding Solution: Automatic Gas Recovery
BTCBot.pro automatically analyzes transactions in new blocks. If a user's minting process is not completed, it will continue to boost up to 20 mints. If the process has already ended, BTCBot.pro will stop and automatically refund the user. This eliminates concerns about losing transaction fees if mints are unsuccessful. Overall, it offers the following benefits:
- Effective management of transaction fees
- Relieving users of the burden of paying high transaction fees for unsuccessful mints
BTCBot.pro's AutoBoost and automatic gas recovery together provide comprehensive solutions to the challenges faced when minting in the Bitcoin Ordinals ecosystem. These solutions not only enhance the chances of confirmation but also ensure users receive their tokens and effectively manage gas fees, optimizing the user experience.
Challenge 3: Data Monitoring
The timing of minting for high-quality projects in the BRC20 domain is uncertain, and users cannot monitor their screens constantly for new mints. Therefore, a monitoring feature is set up, where users can set parameters such as the number of holders, progress, and transaction frequency. When these parameters are met, a message will pop up, and users can choose to submit mints for new tokens.
Corresponding Solution: Automatic Minting Sniper
After setting parameters such as the number of holders, progress, transaction frequency, and minting quantity, if the "automatic minting" feature is enabled, and the account balance is sufficient, it will automatically mint based on the set parameters.
5.2 BRC20 Secondary Market
Apart from a few BRC20 tokens listed on centralized exchanges, most BRC20 token trades require the use of platforms such as OKX and Unisat. In the current BTC minting domain, although it is considered FT (fungible token), the trading experience is very similar to NFT (non-fungible token). Due to the unique mechanism, each order has different prices and quantities, and it is not possible to split trades in a timely manner.
Whether on Unisat or OKX trading platforms, buyers must consume the limit-priced and limited quantity orders of sellers to complete a trade. This results in poor liquidity in the decentralized BRC20 trading domain, the inability to place limit buy orders, and the inability to introduce market makers, issues that BTCBot.pro is attempting to address in the BRC20 domain.
BRC20 Sell Order Functionality
Before BRC20 tokens are listed on trading platforms such as OKX or Unisat for sale, they need to undergo a minting process. For example, if you want to sell 2000 $abcd (a BRC20 token), you need to first convert 2000 $abcd into a mint, then set a price for this mint, and list it on the trading platform for the order to be consumed. By placing limit sell orders, there are no additional costs incurred, and users only need to pay the minting gas fee.
On BTCBot.pro, when users use the "limit sell" function, they can simultaneously list orders on platforms such as Unisat and OKX without incurring any additional costs. This increases the probability of sell orders being executed for the same mint.
BRC20 Limit Buy Order Functionality
This is the first time that limit buy orders have been proposed in the BRC20 domain. Its buy order functionality has the following four characteristics:
Zero Cost
After setting the price and purchase quantity, users can modify or cancel limit buy orders at any time without any gas fees. Similar to the sell order function, the buy order function is applicable to Unisat, OKX, and other trading markets. Currently, the buy order function is available on Unisat.
Slippage Control
When the price of a token falls within the user's set buy order range, a transaction will be triggered. However, the BTC gas fee at the time of order execution will affect the overall price of the token.
For example, if a token quantity is 100 and the price is $1 each, but the current transaction requires a $9 gas fee, BTCBot.pro will automatically calculate the comprehensive cost as: (100+9) ÷ 100 = $1.09 USD, resulting in a 9% slippage. If the user's slippage setting is 10%, the buy order will be triggered automatically. If the user's setting is 5%, the transaction will not be triggered, avoiding an increase in the comprehensive cost of token purchase. The larger the token quantity in an order, the smaller the slippage.
This "slippage setting" is specific to the BTC ecosystem and differs from the slippage in mechanisms like AMM used in Uniswap. In the BRC20 domain, the slippage is influenced by BTC transaction gas fees. Through slippage settings, users can filter out the orders they truly need and effectively control the comprehensive cost.
Order Book Management
In most current BRC20 trading platforms, market makers or project participants are unable to manage order books effectively due to the inability to use limit buy orders. They can only manage orders with market price orders. This significantly affects the trading activity and depth. The limit buy order function can address this issue, allowing project teams or market makers to manage order books on BTCBot.
Automatic Matching
In BTCBot.pro, users can see the amount and quantity of limit buy orders. Holders (sellers) can observe the order depth and choose the price at which to sell, while buyers can obtain lower-cost chips by placing bids. In BTCBot.pro, both buyers and sellers can automatically match trades.
Economic Model
The main source of revenue for the project is transaction fees, ranging from 0.4% to 1% based on tiered rewards and referral program discounts.
- Tiered rewards can reduce fees by up to 50%.
- The referral program allows the inviter to receive a 10% fee reduction when a new user uses their referral code.
- This means a minimum of 60% fee reduction can be obtained.
- 50% of the transaction fees will be distributed to holders of 200 or more $BPIX.
5.3 Future Outlook
(1) Impact of Nakamoto Upgrade and Bitcoin Halving
It is expected that the minting market will remain popular before Bitcoin undergoes the Nakamoto upgrade and the upcoming halving event. This provides significant growth opportunities for trading platforms like BTCBot.pro, especially in attracting new users and increasing trading volume.
(2) Development of Order Book Functionality
BTCBot.pro's roadmap indicates its goal to implement order book trading functionality in the Telegram Bot. This initiative will not only facilitate user trading but also significantly improve liquidity in the BRC20 token domain.
By implementing this feature, BTCBot.pro is poised to gain a competitive advantage in the market, particularly in terms of user experience and trading efficiency. Additionally, the addition of order book trading functionality will make the platform more attractive, drawing more users and investors to participate. With increased liquidity, BTCBot.pro may become a pioneer in the BRC20 domain, further solidifying its market position.
Finally, the development of this feature will require consideration of user interface convenience, trading security, and system stability to ensure the delivery of a high-quality service experience.
(3) Development of Copytrading Functionality
The introduction of smart money monitoring and copytrading features mentioned in the project will be crucial. These features will not only increase the platform's attractiveness but also provide innovative gameplay in the BRC-20 market, attracting more professional investors and everyday users.
(4) Support for More Protocols
While BRC20 is currently the most popular protocol in the BTC ecosystem, other standards such as ARC20, SRC20, Runes, and the ongoing development in the NFT domain, as well as the development of BTC's layer 2 network, are also receiving attention from BTC OG and developers. Following more protocol standards and a wider range of asset categories will be a key focus for BTCBot.pro in the future.
- Summary
In terms of fee structure, BTCBot.pro offers more flexible options and provides fee discounts based on the principle of "the more you work, the more you get," making it one of the most cost-effective options. For example, if a user conducts a $20 ETH transaction on Banana Gun and the transaction is balanced (i.e., buying and selling $20 ETH each), they will need to pay fees based on the total transaction volume. On UniBot or Bonk Bot, users would pay 0.2 ETH for both buying and selling, totaling 0.4 ETH in fees. However, on Banana Gun, they would only pay 0.05 ETH for each transaction, totaling only 0.1 ETH. In comparison, SolTradingBot's 1.6% transaction fee results in a more significant difference in buying and selling costs.
The significant difference in fee structure highlights the huge competitive advantage of Banana Gun and BTCBot.pro for cost-conscious users. Considering that traders may engage in multiple trades over the long term, this fee difference could potentially save users a significant amount of money, making them more popular compared to other options.
6.2 Blockchain Technology
As mentioned earlier, the Solana blockchain has become a hotbed for Telegram Bots recently, primarily due to Solana's high throughput (transactions per second, TPS), which allows for handling a large number of small asset transactions, increasing liquidity and turnover. This is a significant advantage for users engaging in high-frequency trading using trading bots.
Source: Medium @Pontem Network
Compared to Ethereum-based Banana Gun, Solana's high TPS is not only suitable for high-volume traders but also particularly suitable for retail investors with less capital. Due to Ethereum's high gas fees, Solana's low transaction fee structure allows small investors to engage in more frequent trading without worrying about high fees, effectively capturing market value.
Therefore, leveraging these advantages of Solana can attract a wider user base, especially retail investors interested in high-frequency, hot trading, further enhancing its market competitiveness and attractiveness.
6.3 Integration of Decentralized Exchanges
By integrating bots with decentralized exchanges, liquidity can be significantly increased and slippage reduced, ensuring precise execution of bot functions. For example, such integration can ensure that limit orders set by bots can more accurately capture market prices.
The Telegram Bot field is still in its early stages, with a market value of approximately $3.37 billion. In comparison, the related field of decentralized exchanges has a market value of as high as $155.2 billion, nearly 50 times the market value of Telegram Bots. With the market gradually maturing and combined with Telegram's large user base, the development potential of Telegram Bots is extremely vast.
【Disclaimer】This report is an original work completed by the student @ChingChaLong02 , under the guidance of mentors @ZouBlock_ _and_ @Erjiueth at @GryphsisAcademy. The author is solely responsible for all content, which does not necessarily reflect the views of Gryphsis Academy or the organization commissioning the report. Editorial content and decisions are not influenced by readers. Please be aware that the author may own cryptocurrencies mentioned in this report. This document is for informational purposes only and should not be used as a basis for investment decisions. It is strongly recommended that you conduct your own research and consult with independent financial, tax, or legal advisors before making investment decisions. Please remember that past performance of any asset does not guarantee future returns.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
