Unibot: The Everything dApp
Introducing Unibot, the newest crypto innovation designed to streamline trading.
Introduction to Unibot
Unibot is a new crypto innovation developed to optimize crypto trading, making it more user friendly by abstracting away some common UX issues. By incorporating trading utilities and snipers (automatically buying newly deployed tokens) into a Telegram bot, Unibot has simplified the trading process, bringing the world of cryptocurrency trading to the fingertips of many. For those who are unfamiliar, Telegram is a popular messaging application deeply ingrained within the crypto community.
Since its launch on May 17, Unibot has emerged as a crypto unicorn, amassing a noteworthy user base and processing impressive volumes. Demonstrating the scope of its influence, Unibot boasts the following user stats:
28,000+ Twitter Followers
7,000+ Unique Users
5,000+ UNIBOT Token Holders
8,000+ Telegram Members
Unibot's performance metrics also paint a strong picture of its financial success. The protocol has processed over 180,000 trades, resulting in a lifetime volume of $120 million. In terms of revenue, Unibot has earned a total of 4,390 ETH.
As of July 31, 2023, Unibot's market capitalization peaked at an all-time high of $199 million. During this period, its unit price also touched a record high of $199, reflecting an extraordinary gain of over 8,000% for early adopters.
Unibot's success has spawned a wave of similar initiatives, leading to the creation of numerous Telegram bots with a focus on various niches such as trading, bridging, token creation and sniping. This has caught the attention of CoinGecko, resulting in a partnership between the two teams and even a new “Telegram Bots” category on CoinGecko’s website.
Humble Beginnings
Unibot commenced operations as a token "sniper," a tool that facilitated early access to newly launched coins. Users could leverage this bot to snipe new offerings, securing an advantageous position by being among the initial buyers. This concept wasn't novel, having been implemented by projects like Maestro. However, Unibot introduced several key differentiators, thereby carving out a unique niche, eventually dominating the three month old market.
Firstly, Unibot emphasized transaction speed, a crucial factor in the fast-paced, 24/7 world of crypto trading. By holding the Unibot token, users' transactions were given priority and sent to seven private nodes, compared to just four for non-holders. This strategic advantage in transaction speed significantly enhanced the trading experience for Unibot token holders. This was also the first instance of token utility for Unibot.
Secondly, Unibot sports a user-friendly interface, designed with simplicity and intuitiveness in mind. This removed some of the common user experience issues associated with cryptocurrency trading, thereby lowering the barriers to entry and promoting wider adoption.
Unlike Maestro, Unibot also launched its proprietary token, UNIBOT, adding an extra layer of utility and value to its ecosystem. Through this, tax revenues have provided the team with significant funding for marketing and further development. To date, trading taxes alone have generated over 1175 ETH in revenue for the team.
Overall, the Unibot team hit the ground running post-launch, committing to swift updates and novel features. They pledged to roll out two additional features within a week of their May launch: a tool to monitor wallet token value and an "auto-sniper," designed to automatically snipe every new token launch.
From its inception, it was evident that the Unibot team was deeply committed to expeditious updates and improvements. It's this unyielding momentum that has become the team's defining trait and superpower.
As of the time of writing, Unibot provides traders with the following features:
Buy and Sell: Users can buy and sell tokens as normal, or with a number of unique features.
Private Transactions: Protects users from frontrun and sandwich attacks.
Fail Guard: Unibot will simulate the transaction, and if it fails it will not send it.
Frontrun: If enabled, the user's order will frontrun other orders to be placed first.
Limit Orders: Users can place orders with specific instructions to buy or sell a token at a specified price.
ERC-20 Deployment Scanner: Identifies any new ERC-20 token launches with information on taxes, LP locks, verified contracts and more.
Mirror Sniper: Allows users to copy trade other wallets and even front run their buys.
Method Sniper: Enables users to add token contract addresses and when those tokens launch, the method sniper will automatically buy them.
Transfer ETH: Simply transfer ETH between wallets all through the Telegram interface.
PnL Analysis: Quickly and easily see your profit and loss for any trades made.
Token Balances: Identify all tokens of value in your wallet.
Tokenomics
Unibot's token launch was executed fairly and transparently, with a total supply of one million tokens fully in circulation from the outset. A unique aspect of Unibot's tokenomics involves the imposition of taxes on both buying and selling transactions, a feature not typically associated with standard token swaps. This tax model has mostly been associated with memecoins.
In the case of Unibot, a 5% tax applies to both purchases and sales. This tax is distributed in a manner that supports the ecosystem and incentivizes participation. Specifically, 1% of the tax is allocated to liquidity providers (LPs), 2% is distributed among token holders, and the remaining 2% is received by the Unibot team.
Unibot also employs a revenue-sharing model where 40% of all transaction fees are returned to the token holders. This offers additional value to token holders, providing a stream of income based on trading volumes and bot usage. Currently holders are earning a roughly 40.3% APY. To qualify for these benefits, however, users must hold a minimum of 10 Unibot tokens, which, at the time of writing, is equivalent to $1,300.
An analysis of the revenue streams reveals that of the total 4,390 ETH in revenue, a significant portion, 3,773 ETH, is derived from the tax fees on token purchases and sales. The remaining 616 ETH of revenue stems from fees generated by traders utilizing the bot's various features. This diversified revenue model underscores the financial robustness and sustainability of the Unibot ecosystem.
Unibot’s Product Market Fit
Innovative solutions are at the forefront of driving cryptocurrency adoption to a broader audience. Unibot, with its integration into Telegram, lays the groundwork for ushering in a new era of user participation in onchain activities. It's worth noting that Telegram boasts an impressive user base of 700 million globally, offering an enormous pool of potential new users for Unibot.
Unibot has ingeniously simplified the intricate processes of buying and selling newly launched tokens. The user only needs to know the token contract, and within seconds, they can gain exposure to an asset. The focus has shifted from merely buying and holding a project long-term to a more dynamic approach - active trading.
A more nuanced understanding of Unibot can be derived by viewing it as a tool for participation in the Ethereum onchain casino. The landscape is evolving from just trading to something akin to gambling. As users "snipe" new tokens within seconds of launch, token prices can skyrocket, potentially offering substantial profits for early participants. More than just monetary gains, this offers a dopamine rush, fueling the appeal of the opportunity to strike gold in the crypto arena.
This propensity towards risk and reward amplifies demand for new projects. But if we accept the premise that this space is not solely about trading but also an element of gambling, market participants might choose projects based on a whole new set of criteria. Projects launching ‘exciting’ applications, such as Hamsters.gg, or introducing novel memes, like $BITCOIN, could be favored due to their potential to generate hype and provide significant financial gains. In this vibrant landscape, bot users are exposed to new opportunities, emotional highs, and potentially profitable returns.
However, it's crucial to note that the "casino aspect" is merely one among many potential use cases. Unibot's integration of options, sports betting and perpetuals also caters to the segment of users interested in more sophisticated financial instruments. For the end user, it's immaterial whether options are executed via Dopex or perpetuals via GMX, as the interface remains consistent. For protocols partnering with Unibot, it translates into increased volume and an expanding user base, creating synergies that positively impact the entire ecosystem.
Potential Risks
While Unibot has enjoyed significant success and adoption, critics have raised concerns over a few key issues. Firstly, they point out that the listing of Unibot on centralized exchanges (CEX) could potentially impact the protocol's tax revenue stream. This stems from the fact that the majority of Unibot's revenues are derived from taxes on buy/sell transactions, which are typically bypassed or reduced on centralized platforms.
A further concern relates to the security of the Unibot platform. In order to access and use Unibot, users must entrust the bot with their private keys. This poses a potential risk, as an exploit in the system could lead to the draining of thousands of traders' wallets. In this respect, Unibot is prioritizing convenience over the security of its users' assets.
Lastly, it is worth noting that the use of Unibot doesn't inherently decrease the risks associated with trading in so-called memecoins or shitcoins. While the platform may streamline the trading process, it does not mitigate the substantial risks that come with trading coins that lack inherent utility. As such, caution and comprehensive due diligence should be exercised when engaging in these highly volatile and risky markets.
Bot Competition
Several innovative platforms have emerged in the DeFi space, each bringing its unique functionality and value proposition.
Asapbot (ASAP), a trading bot available on Discord, offers its users the benefit of real-time alerts for new tokens and an auto-sniper functionality where limit buy and sell orders can be set. Furthermore, Asapbot incentivizes token holding by distributing 1% of taxed funds back to the holders in the form of Ethereum (ETH).
In parallel, the Wagie Bot (WAGIE) operates on both Telegram and Discord, offering an array of services to its users. These services span across multiple blockchain networks, including Ethereum (ETH), Binance Smart Chain (BSC), and Arbitrum (ARB). The bot integrates with GMX, enabling perpetual trading and includes features such as copy trading, sniper bot, limit orders, and Dollar-Cost Averaging (DCA) orders. In addition, WAGIE allows users to bridge assets across networks and directly interact with liquidity pools.
Scarab (DUNG) positions itself as an all-in-one crypto portfolio manager. It enables users to buy, sell, and "snipe" tokens, and it allows the management of multiple wallets through a single interface. A unique aspect of Scarab is its revenue distribution model - 10% of all tax revenues are used to buyback DUNG tokens. The platform also provides tax breaks to holders possessing a certain number of tokens. Scarab has future plans to incorporate Account Abstraction (AA), eliminating the need for users to supply their private keys.
Lastly, Blacksmith (BS) is an AI-assisted token sniper with customizable features. It includes a real-time scanner and custom alerts, allows token charting on the same screen, and includes a honeypot/scam filter for user protection. Adhering to privacy concerns, Blacksmith assures there will be no storage of private keys, leveraging Account Abstraction for this purpose.
Concluding Thoughts
Unibot, with its innovative and user-friendly approach, has managed to etch out a significant space for onchain trading. Its seamless integration with Telegram and unique features like sniping newly launched tokens, private transactions, and simulated transaction fails have provided it with a competitive edge in the market, attracting thousands of users and generating impressive volumes. The significant gains for early adopters and the attractive revenue model further enhance the platform's allure, despite the potential risks associated with handing over private keys and trading in volatile memecoins.
However, Unibot does not exist in a vacuum. Although Unibot may have a significant head start, the market has seen the emergence of several notable competitors like Asapbot, Wagie Bot, Scarab, and Blacksmith, each with its unique value proposition and innovative features.
These platforms offer their own solutions for real-time alerts, auto-sniping, multi-chain compatibility, all-in-one portfolio management, AI-assistance, and account abstraction. As the market continues to evolve, it will be interesting to see how Unibot navigates these challenges and continues to innovate and provide value to its users while maintaining a robust financial performance.
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Written by: @Ryguy_LikesETH, @NPC_68, and @nfthunter131