Unibot is a new and exciting way to trade digital assets without a centralized authority. It works through the Telegram app, which many people use to chat with friends. Let’s find out more about Unibot and how it fits into the world of decentralized finance (DeFi).
What Is Unibot?
Unibot is a special robot on Telegram that lets you trade different types of cryptocurrency tokens using the Uniswap v3 platform. Normally, when trading on Uniswap, you have to provide both types of tokens for liquidity. But with Unibot, you only need to provide one token and borrow the other from the Unibot Pool. This makes it easier to manage liquidity and gives you more flexibility in your trades. Unibot was created by Diamond Protocol, a group focused on making structured products for decentralized finance (DeFi) on the blockchain.
How Unibot Works
Unibot works by connecting users’ Telegram accounts to their Ethereum wallets, such as MetaMask, Trust Wallet, or Coinbase Wallet. Users can then use the Unibot bot commands to interact with the Uniswap V3 protocol and execute various trading functions. Users can also use the Unibot web interface to access more features and options.
To use Unibot, follow these steps:
- Install Telegram on your device and create an account.
- Install an Ethereum wallet on your device and create an account.
- Add the Unibot bot to your Telegram contacts by searching for @unibot_bot or scanning the QR code on the Unibot website.
- Start a conversation with the Uni bot bot and follow the instructions to link their Ethereum wallet to their Telegram account.
- Send the /help command to the Unibot bot to see the list of available commands and functions.
- Send the desired commands to the Unibot bot to trade on Uniswap V3.
Main Commands and Functions
- /swap: This command allows users to swap one token for another on Uniswap V3. Users can specify the amount, the token pair, and the fee tier for the swap. Users can also use this command to snipe new tokens that are listed on Uniswap V3 before others.
- /pool: This command allows users to provide liquidity to a pool on Uniswap V3. Users can specify the amount, the token pair, the fee tier, and the price range for the pool. Users can also use this command to borrow the volatile asset from Unibot Pool and supply only one asset to the pool.
- /position: This command allows users to manage their positions on Uniswap V3. Users can see their active positions, their balances, their fees earned, and their profit or loss. Users can also use this command to adjust, close, or withdraw their positions.
- /copy: This command allows users to copy the trading strategies of other successful traders on Uniswap V3. Users can see the leaderboard of the top traders, their performance, and their positions. Users can also use this command to follow, unfollow, or tip their favorite traders.
How to Use Unibot Effectively?
To use Unibot effectively and efficiently, users need to consider some factors and tips, such as:
- Gas fees: Gas fees are the fees that users have to pay for executing transactions on the Ethereum blockchain. Gas fees vary depending on the network congestion, the complexity of the transaction, and the gas price that users set. Gas fees can be high during peak times or when there is high demand for trading. Users can use tools like ETH Gas Station or Gas Now to check the current gas fees and choose the optimal gas price for their transactions.
- Slippage: Slippage is the difference between the expected price and the actual price of a trade on a DEX. Slippage occurs due to market volatility, liquidity scarcity, or price manipulation. Slippage can result in losses or missed opportunities for traders. Users can use tools like DEXTools or UniSwap Vision to check the current slippage and choose the appropriate slippage tolerance for their trades.
- Impermanent loss: Impermanent loss is the loss that liquidity providers incur when the price of their pooled tokens changes relative to each other. Impermanent loss occurs due to market movements, arbitrage opportunities, or fee distribution. Impermanent loss reduces the profitability of liquidity provision and can outweigh the fees earned by liquidity providers. Users can use tools like Pools.fyi or Liquidity.vision to check the current impermanent loss and choose the optimal price range for their pools.
Advantages & Disadvantages of Unibot
- Convenience: Unibot allows users to trade on Uniswap V3 without leaving Telegram, which is one of the most popular and widely used messaging apps in the crypto community. Users can trade anytime and anywhere with just a few taps on their devices.
- Flexibility: Uni bot allows users to trade different tokens by supplying only one asset while borrowing the volatile from Unibot Pool. This approach enhances liquidity management and gives users trading flexibility.
- Profitability: Unibot allows users to trade with leverage by borrowing up to 10x of their supplied asset from Unibot Pool. This approach increases trading exposure and potential returns.
- Features: Unibot offers various features that make trading easier and more profitable, such as token sniping, swapping, profit-loss analysis, copy trading, and more.
- Benefits: Unibot offers various benefits to its token holders, such as a share of transaction fees, fast transactions, easy UI compared to Uniswap V3, MEV protection, and low transaction fees (1%).
- Risks: Unibot involves various risks that can result in losses or damages for users, such as market risks, liquidity risks, smart contract risks, regulatory risks, and operational risks. Users should do their own research and due diligence before using Unibot.
- Limitations: Unibot has some limitations that can affect its performance and functionality, such as network congestion, gas fees, slippage, impermanent loss, and availability of trading pairs. Users should monitor these factors and adjust their strategies accordingly.
- Competition: Unibot faces competition from other platforms that offer similar or better services and features for decentralized trading on Uniswap V3, such as Gelato Network, Popsicle Finance, Visor Finance, and more. Users should compare these platforms and choose the best one for their needs.
- Future plans and developments: Unibot is a new and evolving project that has many plans and developments for the future, such as:
- Launching the beta version of the platform in Q4 2021.
- Launching the UNIBOT token sale and listing on exchanges in Q4 2021.
- Integrating more features and options for trading on Uniswap V3, such as limit orders, stop-loss orders, flash loans, and more.
- Expanding the platform to support other DEXs and protocols, such as SushiSwap, Curve, Aave, and more.
- Developing a mobile app and a desktop app for the platform.
- Growing the community and the user base of the platform.
We hope that this article has given you some insight into Unibot, a Telegram bot for decentralized trading on Uniswap V3. Follow them on their social media channels to get notified when they launch their beta version. Happy trading!