Unibot generated a revenue of $637,500 on July 23, 40% of which is allocated to $UNIBOT holders. The static data is attractive, but relying on the model of dividend distribution through transaction taxes may not be sustainable.
Author: Jiang Haibo
Telegram trading bots have been around for a while. Recently, with the popularity of MEME tokens and the issuance of projects like Unibot, this track has once again attracted attention.
According to DeFiLlama data, as of July 24, among all blockchain projects, Unibot ranks second in terms of fees generated in the past 24 hours, second only to Ethereum, Lido, Bitcoin, and Uniswap, and excluding public chain projects, it ranks second only to Lido and Uniswap. Since Lido requires users to pledge ETH to generate revenue, 90% of the fees are allocated to users who pledge ETH, and the protocol’s revenue is only 10% of the fees generated; Uniswap allocates all fees to liquidity providers, and the protocol’s revenue is zero; Unibot, as a service provider, has a revenue-to-fee ratio of 100%. Its revenue of $665,000 in the past 24 hours ranks first among non-public chain projects. Based on this, Unibot will distribute part of its revenue to holders of native tokens, while Lido and Uniswap currently have no plans to distribute profits to token holders.
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Unibot’s services and charging mechanism
Unibot’s Telegram bot completes transactions through conversations with users. The entire process is summarized as follows:
Click “Start Trading” on Unibot’s official website to start trading and a Unibot dialog box will pop up on Telegram;
Unibot generates 3 addresses for each Telegram user;
Users can recharge their Unibot addresses through wallets such as MetaMask;
Select “Buy Tokens” from the options given in the dialog box;
Select the wallet for the transaction and the amount to be purchased;
Enter the token address to be purchased and complete the transaction.
Compared to trading through decentralized wallets like MetaMask, Unibot’s user experience is closer to centralized products. However, security should also be taken into account during this process. The generated addresses can be replaced by refreshing, but the private key needs to be saved before that; the export and storage of the private key should also be protected from leakage; verify the inputted address to prevent buying fake tokens. Unibot has two ways of generating fees, namely the transaction fees of the Unibot bot and the transaction tax of the native token $UNIBOT.
Unibot charges a fee of 1% of the trading volume of the Unibot Telegram bot, of which 40% is allocated to $UNIBOT token holders, and the remaining fees are allocated to the team and used for referral rewards. Users can recommend others to use the Unibot bot for trading, and the referrer can receive 25% of the trading fees of the referred user.
The $UNIBOT token has a 5% transaction tax, of which 1% of the trading volume is allocated to $UNIBOT token holders. During the 90-day window period, this allocation ratio is doubled.
If more than 200 $UNIBOT is sold or transferred in each reward cycle, the reward will be confiscated and returned to the reward pool.
This means that currently about 40% of the fees generated by Unibot are allocated to $UNIBOT token holders.
According to the Dune dashboard provided by Unibot’s official website, Unibot generated fees of 337.54 ETH on July 23, which is equivalent to approximately $637,500 calculated at the closing price of $1888.73 per ETH on Binance. As Unibot is a service provider and does not need to distribute fees to liquidity providers like DeFi projects such as Uniswap, if the daily revenue of $637,500 is allocated 40% to $UNIBOT holders, based on the static data of $UNIBOT’s market capitalization of $140 million, the P/E ratio of $UNIBOT is only 1.5. If Unibot’s data can continue, $UNIBOT tokens will be highly competitive.
Robot trading fees and the proportion of $UNIBOT transaction taxes
According to the data from Dune, as of July 23, all costs in Unibot have reached new highs. Among them, the total cost on July 23 of 337.54 ETH is 2.35 times that of 143.55 ETH on July 22, which directly stimulated the price of $UNIBOT to rise to $140 on July 24.
Using the data from July 23 as an example, the fees generated by robot trading are 38.42 ETH, and about 300 ETH of fees are generated by $UNIBOT’s transaction taxes, accounting for approximately 89% of the transaction taxes.
Prior to this, many MEME tokens have also set transaction taxes to be distributed to the team, token holders, burned, or added to liquidity, but the incentive effect of such tokens often cannot be sustained.
Robot trading fees
The trading fees generated by Unibot robots belong to “real income”, but as mentioned above, this part accounts for only about 11% of the total fees. The total trading volume generated by Unibot robots in the past is $79.66 million, with approximately 120,000 transactions, accumulating a total of 396.92 ETH in fees.
From the data of Dune, it can be seen that robot trading fees are also on the rise. The fees on July 23 are 1.65 times that of the previous day, but the growth rate is not as fast as $UNIBOT’s tax revenue.
Sources of Unibot’s trading volume
Using the data from July 23 as an example, among the top ten trading pairs by trading volume in Unibot robots, the UNIBOT-WETH trading pair has an absolute advantage in trading volume, which is 7.5 times that of the second-ranked trading volume.
In the past three days of trading, excluding the UNIBOT-WETH trading pair, 53.6% of the trading volume comes from the HAMS-WETH trading pair. $HAMS is the token of the real version of the online hamster racing game Hamsters.gg.
In all transactions on Unibot, the top traded tokens include popular tokens on Ethereum such as $BITCOIN, $jim, $RLB, as well as MEME coins. However, it is questionable whether the popularity of these tokens can be sustained.
The current static data of $UNIBOT is very attractive, with a P/E ratio of only 1.5. However, about 89% of this comes from transaction taxes of $UNIBOT, with only about 11% coming from actual profits generated by trading robots. In general, projects that rely on transaction taxes for dividends may not be sustainable in the long term.
In the trading volume of Unibot’s robots, a relatively high proportion also comes from UNIBOT itself. In addition, the trading volume of projects such as $BITCOIN, $jim, $HAMS on Ethereum is also relatively high on Unibot. This indicates that Unibot is indeed suitable for discovering popular projects, but it is also a question whether the popularity of the traded projects can be sustained.