Greetings PUBLISH0X community, today I want to introduce you to the Bonfida DEX and the first-ever organized ATB Trading Competition built on the Solana chain. Bonfida DEX is the primary AMM of the Solana chain with swap, liquidity, staking, perpetual trading, naming, and even ATB trading services. ATB is the abbreviation of ''Automated Trading Bots''. It allows anyone to create a trading bot that is based on TradingView strategies and works on Serum DEX order book to execute trades Bonfida UI. So every single Bonfida user can use it to raise money and achieve higher PnL values without interrupting the decentralization concept.
In this article, I'll try to introduce you to every service provided by Bonfida DEX one by one and at the end, you'll have a chance to enter the competition organized by Bonfida, Serum, and Solana. Now let's start with the basics...
What's Bonfida DEX, briefly?
Bonfida DEX is the primary AMM built on the Solana chain. In other words, you can imagine Bonfida as the Solana version of Uniswap of Ethereum or Pancakeswap of BINANCE Smart Chain. In addition to the basic swap feature, Bonfida DEX is providing its users to place advanced-type orders, let everyone interact with TradinView on-chain, and providing them a better user experience for on-chain trading as well as near-to-zero trading and chain gas fees. We met first with Bonfida after the release of Bonfida WhitePaper in November 2020. According to the WhitePaper, there is a ''Bonfida Foundation'' behind that project which may alter the idea of decentralization but nowadays, the main council to determine what's next for Bonfida is the $FIDA token holders. ($FIDA is the native governance token of Bonfida which I'll explain further.)
From launch to today, the total value of trades executed on Bonfida DEX has surpassed $4 billion dollars. One-eight of total trades executed last week with an average trading amount of $80 million dollars. It looks quite lower compared to Uniswap's or Pancake's daily volume after launch but Bonfida is the flagship of Solana AMMs.
Why Solana?
- Ability to process tens of thousands of trades per second and hundreds of thousands of orders per second.
- Gas costs of less than even $0.01.
- Ability to process all submissions on a human-reaction-time scale. 100ms block times.
- Products composing. Otherwise, you lose a lot of the value-add for companies, meaning each industry will likely want to be roughly single-sharded.
- Ability to be decentralized and open.
Because of the reasons I've stated above and many more, the Bonfida DEX is built on the Serum UI of the Solana chain. If you have no idea about what Solana is or how it tries to change the current crypto ecosystem, please refer to my previous article about Solana and its features. Also, the Serum team has revealed an article about what's the ultimate vision of Serum including many other reasons to choose Solana and why they believe in the potential of DeFi. Please visit here to read about it.
Solana was built with blood, sweat, tears, and experience from tech's most innovative companies.
How to Use Bonfida DEX?
As I've told you many times, the Bonfida DEX is built on the Solana chain. So you must have a native Solana wallet to utilize it. Formerly, Bonfida has its own wallet named ''Bonfida Wallet'' that supports all kinds of SPL tokens. But if you want to set up a Solana wallet today, I should offer you to use Sollet or Phantom wallets. Actually, it's not so much different than the Ethereum or Binance Smart Chain wallet set up. Please always remember to note the seed words in a secure place. Please check the Solana guide for wallet setup here. As I said before, it's almost the same as the other wallet setups.
Please be aware that adding SPL tokens is quite different from other wallets. If you're dealing with METAMASK to add ERC-20 or BEP-20 tokens, you should find the contract addresses and paste them to Metamask, that's all. But if you're dealing with a Solana wallet, you should execute a transaction to add a new SPL token to your wallet.
The image above is taken from the ''Balances'' page of Bonfida DEX. It shows every single previously added token and the default $SOL token. Let's say you just created a new wallet and want to execute a swap from $SOL to $FIDA. Now you should first add $FIDA to your wallet from the ''Add Token'' button on the balances page. You will see a default token list including ETH, FIDA, USDC, USDT, and many more. Please select the relevant one and confirm the transaction on the wallet screen.
After you selected and approved the transaction on-chain, you have the right to utilize any possible feature of Bonfida DEX. Also, the token you previously added to your wallet will appear ''Added''. As you can see from the picture above, you have the right to trade with leveraged tokens directly in your wallet. Please be aware that the transaction you must execute to add the new token doesn't cost even 0.01$ worth of $SOL token. So, you can add even hundreds of SPL tokens with just a 1$ transaction fee. That's great!
After you add $FIDA to your wallet, there are no more difficulties to handle before the swap. Please go top-left, click the magnifier, and search for the market you want to trade with. I will swap some of my $FIDA to $USDC, so I searched for FIDA on the screen below.
There are 3 markets to trade FIDA against USDC, USDT, and RAY (the native token Raydium, a yield farming tool for the Solana chain). Please open FIDA/USDC market, and select the type and amount of orders you want to place. You can place limit and market orders in addition to POST and IOC advanced type orders. I want to sell 5 FIDA with market sell function. I just typed the amount to sell, click market sell, and approved the transaction. It's executed in 10 seconds with a 0.0023 SOL transaction, which almost equals 5 cents!
After the transaction confirmed on-chain, you should ''settle'' your received tokens, specifically USDC for mine. The unsettled balance in the picture means that you have the token but you should settle them to mark it work for you. To settle the unsettled balance, you should execute another on-chain transaction.
The amount of USDC I received from market sell is 7.774 USDC. I just clicked ''Settle'' and made them available to use. It's again confirmed within 20 seconds with a fee of 0.000005 SOL. It equals almost nothing in USD values. Please understand that trading on Bonfida DEX requires more transactions and approves to complete but the sum of all transaction costs starting from adding tokens to settle funds is lower than 0.5$. It is 100x faster than Ethereum and BSC networks, and much cheaper than both of them in terms of USD value.
Bonfida markets are integrated with TradingView. You can see the charts, organize your trading strategy, and start making money without worrying about high transaction fees or slow transaction confirmation periods which may alter your slippage ratio. Until now, you're oriented on how to swap on Bonfida DEX UI. Now I want to introduce you to the other features of Bonfida DEX to make sure there are no question marks in your mind. Please keep reading...
What are the Other Features of Bonfida DEX?
The picture above is taken from the Bonfida DEX dashboard. It includes 8 different utility areas of Bonfida products. You have information about APIs and just learned how to trade on Bonfida DEX, so I'll start with the third option, the Buy&Burn function.
- Buy&Burn Function: The native Bonfida token, FIDA, is regularly buy-backed and burned by the Bonfida Foundation, previously. But as it is controversial with the theme of decentralization, they enabled that function lately. Nowadays, anyone can buy $FIDA tokens back from the market and burn'em all! At the time of writing this article, the total amount of FIDA burned so far has reached almost 1 million units of FIDA. If you have some USDC in your wallet, you can buy FIDA back and burn them forever. 1 million units of FIDA equal to 0.1% of the total FIDA supply stated in the WhitePaper.
- Staking Service: You have the right to stake your FIDA tokens on Serum UI, here. It's stated on the WhitePaper that FIDA stakers will have access to exclusive Bonfida APIs, advanced analytics, and rare Solible markets (an NFT marketplace to buy/sell your NFTs). Before the stake, you should create a new staking account exclusively for the staking function and stake your tokens, that's all!
- Decentralized Naming: Bonfida has enabled the integration of Solana wallets and Twitter handles. The docs are available on Github for anyone here. If you want to cross-match your Solana wallet and Twitter handle, you must tweet your Solana wallet address in a regular tweet and fill in the relevant information on the Naming page of Bonfida. That's all!
- Token Vesting Period: According to the Bonfida WhitePaper, almost 95% of the total FIDA supply is locked and will be unlocked in different vesting periods in years. According to the CoinGecko data, the circulating supply of FIDA tokens is 49,090,230. So, the WhitePaper confirms the CoinGecko data. On the other hand, Bonfida will let anyone create SPL tokens with vesting periods in addition to unlocking the previously locked FIDA tokens. For more information, please refer to this page.
- ATB/Automated Trading Bots: If you are a regular crypto trader, you must face at least once a trading bot or its ad. Many of the ads claim that you will make huge ROIs if you send your money to somewhere else to start using that bot. The first problem about them is always confidence. You don't know the exact location or owner of the bot, so why do you want to send your money into a dark space? Nowadays, the Bonfida team found a solution to that problem by enabling anyone to create his/her ATB to trade on-chain markets. The ATB idea is first stated on the WhitePaper but it's first opened for the Solana community in March 2021.
A Bonfida Bot is a basket of tokens controlled by a smart contract that follows a strategy provided by a Signal Provider.
There are currently 16 active strategies developed by 7 different people/companies. You can track the active pool strategies here. Basically, you put the money in the bot to be a part of the active trading strategy, the bot completes on-chain trades according to the strategy published previously, and the results will be reflected by the owner and participants of that specific ATB. In this way, everyone can able to create a trading bot to make money 24/7 or join one of the previously created ATBs.
You can create your own ATB from 5 templates as you can see from the picture below. Or you can follow the steps stated in the YouTube video to create a native ATB that belongs to you! Please refer to that article if you want to create your ATB with a DCA strategy.
The Bonfida & Serum Bot Trading Competition
Starting from the 24th of May, 2021, Bonfida is hosting a trade competition co-organized with Serum and Solana teams. Anyone is welcomed to create his/her ATB with any current or non-existing strategies to compete with one another. The registration time is over, unfortunately. But you have the right to use any ATBs according to your needs. If you're interested, please join the Bonfida Discord server to meet the guys with the same spirit you have.
As I've stated above, the registration period is closed now. But Bonfida offers 5% of the total prize to those who will help the marketing processes of the competition period. If you are a creator, meme master, or influencer, you can still win up to 400$ in FIDA and SRM tokens and Solana Swags. Please refer to that article to find out what's for creators. The remaining 95% of the total prizes will go to those who created the most successful ATB and the 10 ATBs with the highest total value locked.
Don't forget to join the Discord server and follow the Twitter account to get updates instantly.
*This article is created to spread the awareness of Bonfida and its features by utilizing my own experiences, the Whitepaper, and the Bonfida Medium Blog. None of the words above contain any kind of investment advice! Please DYOR (Do Your Own Research) before investing.*
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