Hey folks, if you’ve been away from the Crypto-space for awhile, you might have missed the run-up of and their token $UNIBOT, which has seen some major volatility over the last couple of months:
The $UNIBOT token hit all-time-highs of more than $200 in August and since then it has retraced all the way back down to where it sits today (or at least time of writing) to around $60.
In this article, we’ll be going into a bit of a deep dive in regards to the platform itself, the tokenomics of $UNIBOT, and also some speculation going forwards.
First let’s talk about the platform itself…
Unlike most other bots, is a Telegram-based trading app that allows the user to perform several automated functions through decentralized markets. In other words, unlike going to centralized exchanges such as COINBASE or Binance, Unibot goes through Uniswap V3, a decentralized exchange to perform several different actions such as buying, selling, limit orders, stop-loss, mirror sniping (essentially copy-trading) and multi-swaps (where multiple swaps are done simultaneously through different wallets).
As you can see in the graphic above, opening up Unibot on Telegram will generate 3 different wallets to use at your disposal. It should be noted that these wallets’ “private keys are encrypted using industry encryption” in the “Unibot Cloud,” — this was done without any publicly announced specifics in regards to what/where the cloud actually is or what 3rd party may or may not be involved — intentionally done so for added security. All that’s really been made public is that the keys were transported away from Telegram as it supposed a significant security risk. Users also have an option to forgo these Unibot-generated wallets all together and can import their own from places like Metamask:
Another set of cool features is that it allows you to snipe new tokens, including newly listed Friend.tech shares. Therefore if there’s a big influencer out there that you’ve been a wanting to get shares of but they’re not on Friend.tech, Unibot allows you to execute buy requests as soon as that influencer comes online to the Friend.tech platform.
Unibot is also MEV resistant, meaning that it can execute trades that won’t be sandwich attacked (where you get front-run before and after you excute your trade), and you can actually enable a front-running option yourself to make ensure your trades are placed before others.
Now to be clear, using Unibot does incur fees up to 1% depending on the transaction (in addition to normal gas fees), with 40% of this shared with $UNIBOT holders (or at least to those who hold at least 10 $UNIBOT) and the rest going to the Unibot team. What is the $UNIBOT token? Let’s get into that next…
What is $UNIBOT?
$UNIBOT is an ERC-20 token that is the vehicle for Unibot’s revenue sharing. There’s a total supply of 1 million tokens, all released via a Fair Launch with all in circulated supply. With every sale/buy transaction of $UNIBOT comes a 4% fee, and according to the , this 4% is divided among the holders (2%), to the $UNIBOT LP (1%), and to the Unibot team and operating expenses (1%).
Is Holding $UNIBOT worth it? Assuming that the price of $UNIBOT were to stay the same, considering that there’s a 4% buy/sell tax with the token itself, this means that the price would have to rise roughly more than 8.5% for you to break even. Let’s see how this works when we break down the math.
Assuming the price of $UNIBOT is at $60 dollars, making a purchase of 1 $UNIBOT would give you 0.96 $UNIBOT, worth approximately $57.60.
In order to make a resulting sale that’s worth $60 dollars, we could figure this out with the following equation:
(Future token price) x (0.96 $UNIBOT) x (0.96 tax) = $60
In order for the final amount to equate to $60 dollars, this would mean that the future token price would have to be approximately $65.10 dollars, or approximately an 8.5% increase in token price
Since $UNIBOT is revenue-shared, it wouldn’t be fair to omit the yield you could accrue that could help counter the taxes that are levied. This may not be an accurate metric because the rate of revenue generated has varied significantly since the token’s inception, but for simplicity’s sake if we assume that the current APR a time of writing remains at 21%, we can try to estimate the amount of time for a $UNIBOT holder to recoup their tax fees:
?Post-buy taxed token price = $60 dollars x (0.96 $UNIBOT) = $57.16 dollars
?Post-sell taxed token price = $62.50 dollars x (0.96 sell tax) = $60 dollars
?Amount of interest required = $62.5 dollars— $57.16 dollars = dollars
Putting this altogether, the amount of time for a $57.16 dollar investment to recoup $5.34 dollars in interest at 21% APR would take approximately 156 days
A final note on $UNIBOT’s revenue share is that you can only withdraw accumulated fees once you hit a volume of at least 0.1 $ETH. And considering that revenue is shared based on the proportional amount of $UNIBOT you own, unless you’re going with some significant volume you most likely won’t be able to claim your fees for a very long time.
Other Takes/Considerations
Due to taxes, $UNIBOT isn’t something to go in and out of quickly — from the buy and sell taxes alone it will take several months to recoup your fees, and if you get hit with negative price volatility it will take even longer. If you’re looking to make quick trades, it makes much more sense to use the Unibot.app itself to execute trades quickly or to poach your favorite influencer’s Friend.tech keys — this way a 1% transaction fee will seem like nothing when you do a 10x by getting in early.
Security is still an issue — regardless of the introduction of Unibot Cloud, the fact that its details are a bit shrouded serves as a double-edged sword. Yes, having your keys with a 3rd party/location might make things more secure, but this foundationally requires trust with the Unibot team who know where your keys are that they’ll handle them with care.
We’re still really early — As you can see from the ‘Bot Users’ stats taken off of Dune Analytics, Unibot has barely been around for 5 months:
And in that short period of time they’ve already come out with numerous upgrades features — here’s a quick list from just the last 30 days:
Gas Modes (10/2023)
Auto-Sell — FriendTech Sniper Upgrade (9/2023)
FriendTech Sniper (9/2023)
Advanced Bundling (9/2023)
FriendTech integration(9/2023)
Easy vs. Expert Mode (9/2023)
Once we see large capital in-flows back into crypto, I would imagine that there will be more and more people going to Unibot to give them that trader’s edge above the rest of the pack.
I’m really excited what Unibot is bringing to the table, and for those of you that are not using Unibot, unless you are using a different bot yourself, just know that there may be someone that’s automating and frontrunning their trades ahead of you. If you haven’t used Unibot yet and you’d like to try it out, I have entered their referral program so please consider using my referral link when you do.
As always, thanks for taking the time to read this and be sure to follow me on twitter (https://twitter.com/CryptosWith) to get all my latest updates. If you want to get access to all my draft links or get an idea about what’s next on my docket before I publish, find me on Friend.tech, where I share all that information in my chatroom. Also, looking for a gift for your Crypto-loving/hating friend? Give them a REKT journal to cheer them up!
Disclaimer: And as a final reminder, this is not financial advice and this is for educational and entertainment purposes only. Please as always, do your own research and find what investments are best for you. Cheers everyone!
