Unibot - A New Way To Trade Onchain
Despite the current negative market sentiment in crypto, there are still many new projects launching and building despite market conditions. One of these projects is Unibot, a project building in the consumer facing dApp sector. Unibot went live on May 18th 2023, and in 1 month has seen its valuation rise to $20 million, and could arguably still be viewed as undervalued.
What Is Unibot?
Unibot is a free-to-use bot that allows anyone to trade and snipe their favorite cryptocurrencies on the Ethereum blockchain using the popular messaging app, Telegram. Unibot allows users to execute fast private transactions, snipe new token launches, as well as mirror the buys of other wallets on-chain; all within a couple of seconds. Private transactions protect users from MEV attacks and the infamous jaredfromsubway.eth. Users can execute trades quickly without needing to worry about getting sandwiched. The team also understands the need for speed in the on-chain market, so users are given the option to frontrun buys/sells for their desired token at the expense of higher gas. The team is consistently pushing out additional features and improvements to the bot, having also recently implemented on-chain limit orders for buys and sells.
All these core features were delivered to users in 1 month.
How Does It Work?
Upon starting the bot, Unibot generates 3 separate wallets for the user, which the user will be able to trade with using Unibot. The balance in each wallet is 0 Eth, so users will be required to transfer ETH to any of the 3 wallets they wish to trade with. Unibot has a simplistic UI for users to be able to quickly learn how to navigate the bot and trade. Say goodbye to trading with Metamask and their clunky UI.
Note that each trade will incur a 0.6%-1% transaction fee (dependent on the number of Unibot you hold)
Unibot Navigation Menu:
Unibot Buy Menu:
Users are able to easily select the wallet they want to trade from, and then input a custom buy amount of the coin they would like to buy. After copying and pasting the contract address of the desired coin, Unibot will execute the transaction. When an order is placed, users will receive a message to indicate a successful transaction and the total cost including gas, or a failed transaction with an error message accompanied with it. Unibot also provides users with a high-level guide of probable error messages for the user to understand the error. After the buy goes through, users will be able to view their token balances and PnL across all wallets from the main menu, allowing users to better manage their risk and their positions.
With regards to the wallet operations, the team is aware of wallet security being a risk factor and have just introduced password infrastructure for users to input every time they would like to 1) display private keys and 2) transfer Eth out from their Unibot wallets. Users also have the option to import their wallets into their preferred wallet providers like Metamask, Rabby, etc to manually transfer assets. It is important to note that the Unibot wallet is designed to be treated as a hot wallet for trading and not an alternative for a cold storage wallet.
Unibot Tokenomimcs
Unibot currently sits at a $20 million market cap & fully diluted valuation. The Unibot coin launched with a fair launch without a pre-sale or early investors and is currently trading at a price of $20 with a total supply of 1 million (all in circulation).
The Unibot tokenomics structure is one that brings about alignment of interests between holders and the team, given how Unibot’s source of revenue relies on usage of the product and interest in trading the Unibot coin itself. The added utility of revenue sharing and reduced transaction fees are what would incentivize users to hopefully convert into token holders and vice versa.
The current revenue share is proportional to the amount of Unibot held, and a minimum of 50 coins held is required to be eligible for revenue share. The revenue share for holders consists of the 3 components as follows:
Holders receive 1% of token swap fees (At the time of writing certain holders are eligible to receive 2% for 90 days for holders who migrated to the new contract on-time)
40% of transaction fees
25% of referral fees from their own respective referral code (if applicable)
The Unibot token just completed a successful token migration to improve the overall tokenomics of the project. This recent migration mainly addresses the issue with low liquidity (because of how the initial token contract was structured). Now with 350 Eth worth of liquidity, it allows for larger trading volumes and less price volatility.
Unibot Business Model
In Unibot’s 1 month of operations, they have generated $20 million in user lifetime volume. This is key as the team’s source of revenues are derived from:
A) A 5% buy and sell tax on the Unibot token
B) 1% transaction fee from bot trades
Figure A: Unibot Tax Revenue
Figure B: Unibot Bot Volume
Source: Unibot Revenue Dashboard
Since the Unibot token went through its migration on June 14th, the 5% buy and sell tax on Unibot token trades have generated 105 Eth worth of revenue for the team; of which 46 Eth went back to holders as part of revenue share. To date, this generates a 20% APR for holders.
In terms of bot volume, Unibot averages $652k in volume a day, equivalent to $6.5k worth of fees for the team. 40% of the transaction fees collected are also distributed back to holders of the Unibot token.
The figure above provides a rough estimate on the rewards earned for the amount of Unibot held based on the daily bot volume.
Based on current averages, Unibot generates ~17 Eth a day from taxes and $6k a day from transaction fees. Assuming Ethereum’s price at $1,700 - this translates to $35k a day, or $1 million a month. If Unibot’s growth and volume stays at this rate, it would translate to a project that generates ~$12 million a year in fees and pay out 20% APR to holders in a bear market, while being valued at $20 million.
We have put together a very rough and basic calculation for Unibot earnings and relative valuation to assist with a simple and high level view of what Unibot’s potential valuation could be while taking into account future growth.
Team & Community
The Unibot team and community may be one of the under-looked parts of this project. Although the team is anonymous, they have been consistently delivering since day 1, and this trust has helped to instill belief in the project and its future. There are currently 6 devs on the team, and many CT figures are heavily involved with the community in the form of being moderators, advisors, and providing suggestions and feedback (from the community of users as well); the team always values feedback and takes them into consideration.
The Unibot community also has a private group for holders of at least 200 Unibot. The group consists of alpha chats for trades, sneak peek into upcoming developments, and discussions around potential updates/features.
Marketing
So far, the team’s marketing strategy has been tailored towards the crypto twitter audience - via partnerships with large CT profiles, word of mouth, and referral links. Unibot allows users to generate their own referral links, earning themselves 25% of the transaction fees from all users under the referral links. This incentives large accounts to use and onboard their audience to Unibot, the marketing and user value flywheel spins on its own here. More marketing plans are in the works, with partnership announcements being teased so this is definitely something to keep an eye out for moving forward.
Competitors
The most obvious competitor is Maestro, another bot that has been around for years and has averaged ~1.5 million in trading fees per month in 2023. The difference is that Maestro has been in the game for years and has built up its market share throughout multiple cycles in crypto. Furthermore, they currently do not have a token to distribute value back to users. Unibot also has two sources of revenue - from transaction fees and the tax on Unibot coins.
There are also many projects very similar to Unibot that launched after the hype that Unibot generated with hopes of capturing a share of the market. However, many of them do not have a product yet, and some projects are launching bots on different platforms (Discord) to capture a different market segment. Other direct competitors on Telegram that have launched since Unibot include Scarab ($Dung - $3 million mc), The Eye ($Eye - $1.5 million mc), Revolt ($Revolt - $87k mc) and more.
Conclusion
Unibot ticks many of our boxes when it comes down to the fundamentals of a project. So far, we believe that Unibot still acts as a market leader in this space (for trading bot projects with a coin), with a highly capable dev team and advisors. Furthermore, many product innovations have been discussed and talked about, aiming to increase their user base and trading volume. The simplistic interface and user experience positions Unibot as a leader in the consumer dApp sector, and also has the potential to capture new retail participants when retail returns. While Unibot generates these numbers during an arguable bear market and negative market sentiment, we are look forward to what Unibot’s volume and fees will bring during the bull.
If you enjoyed this article on Unibot and would like to try out the bot, it would be greatly appreciated if you would support by using my ref link and save 10% on fees!
Disclaimer: This post is not sponsored by Unibot, and we have no affiliation with the team. Nothing mentioned in this article should be taken as financial advice, and remember to do your own research.
Unibot Official Links:
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