In-depth exploration of the Telegram Bot project, understanding the current development status of Telegram trading bots, and predicting their future trends.

Written by: @ChingChaLong02

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 project 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, Telegram bots specifically for trading BRC-20 have emerged. This article also aims to understand their models and development.

1. Unibot

Since its token issuance, the token price of Unibot 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 frenzy around Telegram bots.

Users can interact with Unibot in a conversational manner to easily execute on-chain token trading instructions, including token exchange, copy trading, limit orders, and private transactions on Uniswap. Additionally, Unibot 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 to Unibot V2 in July, the project team canceled the token burning function as they found it 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 a subsequent sharp drop in token price, the project capitalized on the Friend.tech craze 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 craze 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's revenue mainly comes from two sources: bot transaction fees and the native token UNIBOT's trading tax.

For the former, Unibot charges a 1% transaction fee for each trade, with 40% allocated to token holders. The latter refers to a 5% tax on all UNIBOT token transactions, with 1% of the trading volume allocated to token holders, and token holders with a balance of more than 50 UNIBOT are 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 trading $UNIBOT, resulting in users actually bearing a cumulative 10% tax during the buying and selling process, making it the main source of the project's income. However, this also implies a potential problem: 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 recently announced the launch of a similar Telegram Bot on the Solana platform. Leveraging its advantage as a well-established project, it has the following prominent features:

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.

Collaboration with the trading data aggregator platform Birdeye: Seamless support for all projects displayed on Birdeye, which I believe is 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, which is a promising development in the long term.

2. Banana Gun

Banana Gun is one of the popular Telegram trading bots in the market. It provides 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 purchase new tokens upon release. Banana Gun has recently expanded to Solana from initially supporting only Ethereum. Here are some detailed insights into its functions:

First Bundle or Fail (FoF):

First Bundle or Fail (FoF):

To effectively aim for the first purchase (0 block) at the start of trading, at least 10 wallets need to participate. Not applicable for MEV or Deadblock releases.

FoF Backup:

If the FoF function is not triggered during MEV or Deadblock releases, the backup function will make a purchase in the next available block and use backup miner fees.

Slippage:

Allows price fluctuations in the range of 0-99% in issuances without a maximum trading limit. Setting it to 100 is equivalent to "infinite" slippage.

Degen Mode:

Enabling this feature allows users to purchase trades as "honey pots" to deter zombie users. If this setting is enabled, the bot will ignore security tax settings and can purchase even if the token cannot be sold.

MaxTx or Revert:

Limits purchases to the maximum expenditure. If the maximum transaction amount of the token exceeds this amount, the transaction will be reverted.

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 taxes exceed security settings or when there are signs of fraud.

Transfer on Blacklist:

If a user's wallet is blacklisted, this feature will transfer the tokens to a designated "transfer wallet."

Pre-Approve:

Automatically approves tokens after a snipe purchase 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, due to a vulnerability in the smart contract that mistakenly allowed users to sell their assets while still retaining tax tokens in their wallets, the price of $BANANA plummeted to $0.03.

User Milestone Achieved (October 20, 2023):

Banana Gun reached an important milestone of 30,000 permanent users, marking the beginning of a future price increase.

Peak Trading Volume (November 27, 2023):

The price continued to rise, and on November 27th, Banana Gun's daily trading volume reached a peak 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 share will be unlocked in two phases as follows: 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 trades using Banana Gun's bot services.

(1) Manual purchase trades are charged a 0.5% fee; (2) Automatic snipe trades are charged a 1% fee.

From all collected bot transaction fees, 50% is allocated 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 several factors. Initially, the project used token taxes as a source of income during the bear market when the activity of its profitable bots was not as high. With the improvement in market conditions and the stabilization of bot income surpassing tax revenue, the project reevaluated its approach.

However, considering that the funds for token buybacks by the project mainly came from token taxes 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's deflationary 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 transaction fees, reduced slippage for traders, easier integration with centralized exchanges, and wider exposure for the token. This broader exposure is expected to attract more users to use the bot, creating a cycle of growth and participation.

Following the announcement of 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 wider token adoption.

2.4 On-Chain Data

Through in-depth analysis of on-chain data for $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 the stability of market liquidity, providing powerful 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 team tokens are also locked. It's important to note that over 70% of the liquidity remains locked and will require attention to future linear unlock times.

The above chart shows the token distribution of $BANANA, indicating that even the top ten holders each hold less than 1%, indicating that the token is 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 Smart Money's trend is also showing an upward performance.

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: one is trading bot projects similar to $BANANA, such as Unibot and Maestro Bot; the other category is decentralized exchange projects, including Uniswap, Sushiswap, and Pancakeswap.

Particularly, considering the interrelatedness 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 Price-to-Earnings and Price-to-Sales ratios. 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, as the project's mechanism provides 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 Price-to-Earnings 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 Price-to-Sales ratio, the potential price range of $BANANA is calculated to be $10.12 to $10.37. Similarly, based on the Price-to-Earnings 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 for 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 the launch on the Solana platform, there was a strong user response, attracting approximately 1,700 new users, with a total user count exceeding 4,000 on the 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 in SOL tokens to the referrers. This is a strategy by the project to attract new users in the early stages, and its success is reflected in these data.

Considering the price increase of Unibot after its launch on Solana, it is reasonable to expect an upward trend in the value of $BANANA in the future.

For holders of $BANANA, providing significant income bonuses in the initial two weeks is undoubtedly an attractive incentive mechanism. This strategy is likely to have a positive catalytic effect on the price of the $BANANA token in the short term, sparking interest and investment enthusiasm in the market.

(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 barrier to entry for the general public, has now chosen Banana Gun as its partner. This is particularly bullish for Banana Gun for several reasons:

• Increase Exposure and User Base: The collaboration with DEXTools, which has a large user base, significantly increases the exposure of Banana Gun. This may attract more users to enter the Banana Gun ecosystem, potentially leading to an increase in the number of token holders and active traders.

• Increase 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.

• Strengthen Market Position: This collaboration strengthens Banana Gun's position in the market as a reputable and technologically advanced trading option. Being chosen by renowned 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, the transaction will not initiate MEV protection.

• Secure Mode: This mode ensures transaction protection under any circumstances, even if it means that transaction speed may slow down. 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 mention and listing of $Bonk by two major trading platforms, Coinbase and Binance, greatly propelled the development of the Bonk ecosystem and led to broader adoption.

As an example, BONKBot chooses to use $Bonk as the primary token for its trading platform and has implemented a mechanism to repurchase and burn tokens using trading fees, which 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 burning of $BONK

• 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 protocol's trading volume and trading revenue have significantly increased with the hype around meme coins by BONKBot, with daily revenue reaching a high of $750K, but has recently declined.

The main trading pairs on BONKBot include SOL/PONKE, SOL/USEDCAR, SOL/OMNI, SOL/$WIF, and SOL/BORK, which belong to various types of meme coins.

3.4 Future Outlook

（1）Solana Ecosystem Meme Coin Craze

The thriving 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 dressed in attire representing "Silly Dragon," a friendly gesture to the meme coin community. This gesture highlights Solana's welcoming attitude towards meme coins, fostering an environment for their flourishing.

After 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 continues to exist, tools like BONKBot, which facilitate the quick and easy acquisition of tokens, remain very valuable, especially 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 in this context perfectly aligns 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 trades are conducted through Raydium's Swap feature.

This correlation is further highlighted by data showing that Raydium's locked volume has significantly increased with the growing trading volume of BONKBot, emphasizing the core role played by BONKBot 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 in 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 the growth and vitality of both within the Solana ecosystem.

4. SolTradingBot

SolTradingBot is another mimicry similar to BONKBot. It also adopts the gameplay of a Telegram Bot, but it has some unique features, such as:

DEX Integration:

Integration 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 trading.

4.1 Protocol Performance

The project, as a newcomer, was only launched in December, but it coincided with the peak of speculation in 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 mainly 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 developed a clear roadmap and plans to achieve 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 to be crucial:

Comprehensive ecosystem: Introducing additional features such as advanced analytics, risk management, and portfolio tracking indicates a trend towards creating a more powerful trading tool.

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 trading decisions.

Strategic partnerships: Exploring further partnerships within the Solana ecosystem may lead to increased utility and integration, expanding the robot's coverage and capabilities.

Platform evolution: Researching support for new assets and potential expansion to more DEX platforms.

（2）Positioning of SolanaTradingBot

In terms of functionality, the various projects are generally similar, so there is no need for two almost identical projects, especially in the Solana ecosystem, which will be a field that 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 relatively late to launch, if the future roadmap cannot be realized, it may face the risk of being overshadowed by BONKBot.

5. BTCBot.pro

Solana and ETH use account models, while BTC uses the UTXO model. This difference in underlying data structures has led to significant differences in related assets and ecosystems. In this section, we will elaborate on the functional innovations of BTCBot.pro and the potential impact on users and the industry in the BTC domain.

BTCBot.pro is a Telegram Sniper Bot product for the BTC ecosystem, launched on December 23, 2023, currently focusing on engraving and trading BRC-20 tokens, and has introduced some practical features to address the current issues facing the BTC domain.

Due to the significant differences in the BTC, ETH EVM, and Solana ecosystems, their overall design logic also differs greatly. 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 Confirmation

After submitting batch engravings 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 potentially not receiving tokens after the minting process.

Corresponding Solution: BTCBot.pro's AutoBoost

BTCBot.pro addresses this issue by automatically monitoring and boosting transactions. It can identify engravings that cannot be confirmed in the next block and bundle them together for boosting.

This multi-stage bundling method greatly increases the likelihood of these transactions being confirmed in the next block, with a success rate of up to 99%, bringing the following benefits:

• Adapting to constantly changing transaction fee prices
• Ensuring blockchain confirmation of engravings
• Ensuring users receive their tokens in a timely manner

Challenge 2: Inability to Refund

Although users can pay high transaction fees to ensure successful engravings, there is no mechanism for users to receive a refund if they do not receive the tokens due to delayed confirmation. As a result, users pay high transaction fees but may not successfully mint tokens.

Corresponding Solution: Automatic Fuel 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 engravings. If the process has already ended, BTCBot.pro will stop and automatically refund the user. This eliminates concerns about losing transaction fees if engravings are not successful. Overall, it brings the following benefits:

• Effective management of transaction fees
• Relieving users of the burden of paying high transaction fees for unsuccessful engravings

BTCBot.pro's AutoBoost and automatic fuel 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 that users receive their tokens and effectively manage gas fees, optimizing the user experience.

Challenge 3: Data Monitoring

The start time for minting high-quality projects in the BRC20 domain is uncertain, and users cannot monitor the process continuously. Therefore, a monitoring function is set up, where users can receive notifications based on criteria such as the number of holders, progress, and transaction frequency, allowing them to choose the number of tokens to mint.

Corresponding Solution: Automatic Minting Sniper

After setting parameters such as the number of holders, progress, transaction frequency, and number of engravings, users can enable the "Automatic Minting" function. If 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 trading requires the use of platforms such as OKX and Unisat. In the current BTC engravings domain, although it is 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.

In both Unisat and OKX trading markets, buyers can only execute trades by consuming the limit-priced and limited quantity orders placed by sellers. This lack of liquidity in the decentralized BRC20 trading domain prevents the placement of limit buy orders and the introduction of market makers, which BTCBot.pro aims to address.

BRC20 Sell Order Function

Before BRC20 tokens are listed on trading platforms such as OKX or Unisat for sale, they need to undergo a minting process. For example, to sell 2000 $abcd (a BRC20 token), it needs to be converted into an engraving first, and then a price is set for this engraving, which is then listed on the trading platform for orders to be executed. Placing limit sell orders does not incur any fees; users only need to pay the gas fee for minting.

On BTCBot.pro, when users use the "Limit Sell" function, they can place orders on Unisat, OKX, and other platforms simultaneously without incurring any additional costs. This increases the probability of sell orders being executed.

BRC20 Limit Buy Order Function

This is the first time that the limit buy order function has been proposed in the BRC20 domain. The buy order function has the following four characteristics:

1. Zero Cost

After setting the price and purchase quantity, users can modify or cancel limit buy orders at any time without incurring any gas fees. Similar to the sell order function, the buy order function is applicable to Unisat, OKX, and other trading markets. Currently, the Unisat buy order function has been launched.

2. Slippage Control

When the price of a token falls within the user's set buy order range, the 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. At this point, the transaction slippage is 9%.

If the user's slippage setting is 10%, the sell order will be triggered automatically; if the setting is 5%, the order will not be triggered, thus avoiding an increase in the overall cost of token purchase. The larger the token quantity in an order, the smaller the transaction slippage.

This "slippage setting" is unique to the BTC ecosystem and differs from the slippage setting used in AMM mechanisms such as Uniswap.

Because under the AMM mechanism, the size of the Liquidity Pool affects the slippage, while in the current BRC20 domain, the BTC transaction Gas Fee affects the slippage. Through the slippage setting, users can filter out the orders they truly need and effectively control the overall cost.

3. Order Book Management

In most current BRC20 trading platforms, market makers or project participants cannot manage the order book effectively due to the inability to use limit buy orders, and can only manage orders with market orders.

This significantly affects the trading activity and depth. The limit buy order function can address this issue, allowing project participants or market makers to manage the order book on BTCBot.

4. Automatic Matching

In BTCBot.pro, users can see the amount and quantity of limit buy orders currently placed. 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, which range 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 represents a minimum of 60% fee reduction.
• 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 engraving market will remain hot 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, which will not only facilitate user trading but also significantly improve liquidity in the BRC20 token domain.

By implementing this feature, BTCBot.pro is expected to gain more competitive advantages in the market, especially in terms of user experience and trading efficiency. Additionally, the addition of order book trading functionality will make the platform more attractive, attracting more users and investors. 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 need to consider the convenience of the user interface, trading security, and system stability to ensure the provision of a high-quality service experience.

(3) Development of Copytrading Functionality

The introduction of smart money monitoring and copytrading functionality mentioned in the project will be crucial. These features will not only increase the platform's attractiveness but also provide a novel way to participate in the BRC-20 market, attracting more professional investors and everyday users.

(4) Support for More Protocols

While the BRC20 protocol is currently the most popular 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 Layer 2 networks, 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 the future development of BTCBot.pro.

6. Summary

Although each Telegram Bot project has different positioning and targets different blockchains and markets, it is still important to compare some performance standards of each project.

6.1 Fee Structure

In terms of fee structure, BTCBot.pro provides more flexible options and offers fee discounts based on the principle of "more work, more rewards," making it one of the most cost-effective options. In comparison, Banana Gun's manual trading also offers a 0.5% economical choice.

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 need to pay fees based on the total transaction volume. On UniBot or Bonk Bot, users would pay 0.2 ETH for buying and 0.2 ETH for selling, totaling 0.4 ETH in fees.

On Banana Gun, however, users only need to pay 0.05 ETH for each buy or sell, totaling only 0.1 ETH. In comparison, SolTradingBot's 1.6% transaction fee shows a significant difference in buying and selling.

This significant difference in fee structure highlights the significant competitive advantage of Banana Gun and BTCBot.pro for cost-conscious users. Considering that traders may conduct multiple trades over the long term, this fee difference could save users a significant amount of money over time, making them more popular compared to other options.

6.2 Blockchain Technology

As mentioned earlier, the Solana blockchain has become a recent hotbed for Telegram Bot activity, primarily due to Solana's reputation for high throughput (high transaction speed per second, TPS), capable of handling a large number of small asset transactions, which increases liquidity and turnover. This is a significant advantage for users conducting high-frequency trades using trading bots.

Source: Medium @Pontem Network

Compared to the 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 conduct more frequent trades 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 trades, further enhancing its market competitiveness and attractiveness.

6.3 Integration with 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 domain is still in its early stages, with a market value of approximately $337 million. In comparison, the market value of related domains such as decentralized exchanges is as high as $15.52 billion, nearly 50 times the market value of Telegram Bots. As the market matures and integrates with Telegram's large user base, the development potential of Telegram Bots is extremely broad.

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