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Since the fourth quarter of 2023, the cryptocurrency market has shown a clear bull market trend. Along with this macro environment, the Meme token market has experienced significant growth. Such tokens have shown great potential for value growth in the short term, attracting a large number of investors to participate. However, the Meme token market also shows extremely high volatility and short market cycles, and some tokens have active trading periods of less than 10 minutes. Due to technical factors such as blockchain network congestion and operation speed restrictions, transactions often need to be carried out in seconds, which increases the risks faced by investors, especially the possibility of buying at market highs. In response to these challenges, Dex Trading Bot (decentralized exchange trading robot) came into being, aiming to solve practical problems such as the need for fast transactions and reduce MEV (maximum extractable value) losses.
With the launch of related products (such as Banana) on mainstream exchanges such as Binance, the Dex Trading Bot field has quickly gained market attention. Analysis shows that such tools not only perform well in terms of usage, but also show strong profitability and have accumulated a large number of real users.
The Dex Trading Bot track is becoming an emerging area in the cryptocurrency market that deserves close attention due to its broad user base, clear application scenarios and significant profit potential.
What is Dex Trading Bot
Dex Trading Bot is an automated trading tool designed for DEX traders, mainly to optimize the trading experience of trading users. These robots can perform a variety of functions, including but not limited to automatic order placement, portfolio management, setting stop loss and take profit, etc. Dex Trading Bot can monitor and trade the cryptocurrency market non-stop within 24 hours, thereby increasing the possibility of capturing favorable trading opportunities.
Dex Trading Bot can realize automated trading through smart contracts, and users do not need to have programming skills to use it. In addition, DEX Trading Bot now supports cross-chain transactions and multi-platform operations. At the same time, Dex Trading Bot can also provide a variety of strategy options, such as arbitrage, copy trading, and grid trading, to help users find the best profit opportunities in different markets.
Dex Trading Bot can also implement more complex trading operations such as limit orders, market orders, and cancel orders through automated APIs. Therefore, Dex Trading Bot is a very powerful automation tool that can significantly improve trading efficiency and profitability. It is especially suitable for users who want to trade efficiently on decentralized exchanges, especially for traders who chase on-chain dogs and Meme coin transactions.
Services provided by Dex Trading Bot
The reason why Dex Trading Bot is widely accepted by trading users is that Dex Trading Bot provides users with more services than DEX. According to several top-ranked Dex Trading Bots in the market, the services provided by Dex Trading Bot are summarized as follows:
Automated Trading
Automated trading means using Dex Trading Bot to automatically execute trades, saving time and effort. Instead of manually monitoring the market and executing trades, traders only need to set trading strategies and conditions, and the trading bot will automatically execute trades based on these conditions.
Automated trading can help traders better grasp market changes, seize trading opportunities in a timely manner, and reduce the impact of human factors on trading decisions. By using Dex Trading Bot for automated trading, traders can manage their portfolios more efficiently, improve trading efficiency, and reduce trading losses caused by negligence or emotions. Therefore, the automated trading function of Dex Trading Bot provides users with a more convenient and efficient trading method, which helps traders optimize their trading experience and improve trading results.
Optimize trading experience
In order to improve the trading experience, Dex Trading Bot has functions such as stop loss, take profit and trailing stop loss, which can help traders control risks and profits more accurately. Whether it is short-term trading or long-term investment, Dex Trading Bot can provide traders with effective trading decision support. With intelligent algorithms and real-time market data analysis, Dex Trading Bot can help traders make more rational trading decisions and avoid emotional behavior, thereby increasing trading success rate and profits.
Sniper function
The sniping function refers to the rush buying function provided by Dex Trading Bot, such as rush buying at the opening or pre-sale.
Dex Trading Bot can quickly buy or sell assets at a specific point in time to capture the best opportunities in the market. The sniping function can help investors grasp the best trading opportunities in the trading market, thereby achieving better investment returns. Using the sniping function, Dex Trading Bot can quickly respond to market changes based on preset conditions and strategies, thereby achieving rapid buying and selling of assets, thereby making greater use of market volatility to obtain more trading opportunities and profits. The sniping function is a very important tool for investors. It can improve trading efficiency and accuracy, help investors better grasp market opportunities, and achieve better returns on investment.
One-click copy function
Dex Trading Bot allows traders to select one or more accounts, trading robots and other trading entities that they believe have a higher trading success rate, and then add these trading entities to the watch list in Dex Trading Bot, and then automatically follow the trading behavior of these trading entities in real time. If these trading entities have a trading behavior, then Dex Trading Bot will immediately copy the trading behavior of these trading entities, and Dex Trading Bot will automatically execute every trading instruction of the trading entity. This allows traders who do not have enough time and expertise to conduct market analysis to improve their trading success rate.
Limit Orders and DCA
The limit order of Dex Trading Bot is set to be partially executed and obtain tokens for the executed part. When proposing a transaction, Bot can select the order validity period, exchange price and exchange quantity according to the optimal path, so as to maximize the benefits in the transaction. This allows trading users to more conveniently avoid the cost increase and slippage caused by the price impact during the transaction, while avoiding the MEV problem.
The DCA fixed investment product has been added to Dex Trading Bot. Users can reduce their purchase costs to their expected price range by setting a fixed amount of investment for Dex Trading Bot in the future. This method can help investors reduce the risk of investing at a single price point in a volatile market environment. Dex Trading Bot provides DCA fixed investment products. Users only need to set their purchase frequency, purchase price range, total time period, and the currency they want to purchase. After the fixed investment takes effect, the tokens purchased by the user will be transferred to the users account associated with Dex Trading Bot, and the transaction will be automatically executed according to the preset price range and transaction frequency. After the fixed investment is completed, the tokens will be automatically transferred back to the users wallet.
Classification of Dex Trading Bot
According to the profit model of Dex Trading Bot, it can be divided into three types:
Subscription Fee
The subscription fee system means that before using Dex Trading Bot, you must pay a certain amount of subscription fee to the project to obtain the right to use it. Generally speaking, the fee is about 0.1 ETH per month and 1 ETH per year. The subscription fee system is relatively biased towards communities or small circles. The most common user group is KOLs with a relatively high winning rate on the Internet who bring orders to their fans, and users copy the KOLs operations through the copy order function.
Transaction Fees
Dex Trading Bot, which charges transaction fees, is similar to DEX. Each time you use Dex Trading Bot to perform a transaction, you will be charged according to the number of times. The general fee standard is about 0.5%-1.5% of the transaction amount. These fees do not include the fees of the trading user in DEX, which means that they will be charged twice. However, generally speaking, Dex Trading Bot will distribute part of its income to its token holders, thus maintaining a virtuous cycle relationship.
If there is no project issuing coins, there will be no distribution of project income.
A hybrid system of subscription fees and transaction fees
Some Dex Trading Bots use a combination of subscription fees and transaction fees. Generally, these Dex Trading Bots have some upgraded businesses or services, such as Maestro. The main income of the Maestro project comes from charging transaction fees to trading users. The fee for each transaction is 1% of the transaction amount, but because it does not issue coins, all fees are not distributed to users as protocol income. However, it provides a VIP community service system, that is, paying $200 to Maestro every month, and after entering the VIP community, you can enjoy some carefully selected Smart Money addresses or wealth passwords, similar to the paid groups created by traditional KOLs.
According to the nature of Dex Trading Bot, we can see that the project is mainly aimed at high-frequency trading, and uses fast trading to gain advantages in projects such as Meme or Dog. Therefore, the trading users who use Dex Trading Bot are basically high-frequency traders. In addition, the project charges per transaction, and the charging standards are mostly set at 1%. Therefore, the project income of Dex Trading Bot is not even inferior to the income level of some top DEXs.
Advantages of Bot over traditional Dex
After Dex Trading Bot was put into use, its usage increased significantly in a short period of time, and its project revenue is even comparable to that of top DEX. This phenomenon is caused by the fact that Dex Trading Bot has several irreplaceable advantages over traditional DEX:
Quick response
By using Dex Trading Bot for trading, trading users can achieve quick response. Once the target price is triggered, the transaction will be executed immediately, avoiding the delay that may be caused by manual operation. This real-time trading method greatly improves trading efficiency and reduces trading risks. In addition, when the on-chain transaction volume increases suddenly, on-chain congestion often occurs, and DEX often freezes due to excessive transaction volume due to the performance of the chain. Dex Trading Bot achieves fast transactions through its efficient trading mechanism, avoids transaction delays caused by network congestion, and ensures that users can complete transactions quickly. At the same time, because trading users need to rush to the earth dog or Meme, the opening purchase speed of tokens is very high, so Dex Trading Bot is especially suitable for users who trade quickly when the market opens. Such users can seize market opportunities at the first time and achieve higher returns through fast transactions. The instant response ability of Dex Trading Bot allows users to place orders and complete transactions quickly.
Automated Trading
In the Crypto market, the market is changing rapidly because of the 7*24 trading mechanism, which poses great challenges to high-frequency trading users. Therefore, the demand for automated trading has emerged. Automated trading can not only accurately grasp the time periods of market fluctuations, but also save the time and energy of trading users. Traditional manual trading requires investors to spend hours monitoring the market and manually executing transactions, while automated trading can completely liberate investors hands, freeing them from heavy trading operations and allowing them to focus more on market analysis and strategy formulation. This not only improves trading efficiency, but also allows investors to better grasp the pulse of the market and make more informed investment decisions.
Reduce MEV loss
The biggest problem that traders face when trading on traditional DEXs on the chain is MEV attacks. Traders may suffer serious losses due to MEV attacks, so how to prevent MEV attacks is also a problem that DEX needs to solve. Although many DEXs have made improvements to MEV attacks, the results are not satisfactory. MEV attacks still occur from time to time, and if MEV attacks occur when traders rush to buy tokens that have just opened, the losses caused to traders will be much greater than the usual losses, so traders usually need to set higher slippage to ensure successful transactions. However, Dex Trading Bot can effectively prevent MEV attacks through its own technology. Traders only need to pay a handling fee of about 1%, and the slippage fees saved often exceed the handling fees paid, greatly reducing transaction costs.
High flexibility
Traders can personalize their trading strategies and parameters according to their needs. This flexibility allows each user to optimize trading according to their investment strategy and risk preference. Through customized settings, users can better adapt to market changes, improve trading efficiency, and better control risks. Different investors have different needs and preferences. The high flexibility of Dex Trading Bot can meet these diverse needs and provide users with a more personalized trading experience. In the ever-changing market environment, high flexibility has become an important factor in improving trading competitiveness and adaptability, and it also provides users with more choices and room for development.
Improve user experience
Compared with traditional DEX, Dex Trading Bot has a higher user experience for traders. Dex Trading Bot provides convenient cryptocurrency trading, monitoring and analysis tools, which greatly improves the convenience of traders in trading. By accessing various platforms, traders can easily trade cryptocurrencies, monitor market trends in real time, and conduct in-depth data analysis to help users make wise trading decisions. Dex Trading Bot not only simplifies the trading process, but also provides comprehensive market information and analysis reports, allowing users to have a clearer understanding of market trends and risks, thereby increasing the success rate of transactions. Dex Trading Bot also provides a variety of trading tools and functions, such as automatic trading, quantitative analysis, etc., to help users better grasp market opportunities and achieve more stable and sustainable returns.
Dex Trading Bot Data
Based on the latest data provided by Dune, we analyze the data of Dex Trading Bot as follows:
Transaction volume and users of each chain
Trading volume and number of users (data source: https://dune.com/whale_hunter/dex-trading-bot-wars)
In terms of trading volume, Dex Trading Bots daily trading volume was $105.54 million. This was mainly due to the sharp drop on Monday, which caused a drop in the trading volume on the chain. From the figure, we can see that all transactions mainly come from three public chains, with a trading volume of $74.78 million on Solana, $20.15 million on Ethereum, and $1.57 million on BSC. Solana and Ethereum account for 95% of the total.
In terms of the number of users, Solana has 161,200 daily users, Ethereum has 36,900 users, and Base has 10,200 users. From the data, we can clearly see that the average transaction amount per user of Solana is relatively small at $463, the average transaction amount per user on Ethereum is $546, and the average transaction amount per user on Base is $96.42.
User volume trend
Number of users within 180 days (data source: https://dune.com/whale_hunter/dex-trading-bot-wars)
According to the chart data, the market has been in a wide range of fluctuations for the past four months, and the market plummeted on Monday. There have been no prominent hot spots in the market in recent months, so the number of traders on the chain has basically remained between 58,000 and 60,000. However, when the market is on an upward trend, the number of users grows faster, reaching 120,000 on March 18. Therefore, it can be concluded that the number of Dex Trading Bot users is affected by the market activity. When the market is on an upward trend, a large number of hot spots will appear, and the demand for Dex Trading Bot will continue to increase.
Trading volume trends
Trading volume within 180 days (data source: https://dune.com/whale_hunter/dex-trading-bot-wars)
As can be seen from the figure, there is a certain correlation between the trading volume and the number of users of Dex Trading Bot. When the market is good, both the trading volume and the number of users will show an upward trend; on the contrary, when the market is not good, the trading volume and the number of users will decrease. From the comparative data, the trading volume reached 700 million at its peak, and it is currently around 100 million; while the number of traders was 120,000 at its peak, and now it is more than 50,000. This shows that when the market is good, the original trading users will increase the investment amount or the frequency of transactions, thereby driving the growth of trading volume. Therefore, when the market is good, the growth rate of trading volume will far exceed the growth rate of the number of trading users.
Bot Income
Now the total revenue of Dex Trading Bot has reached 1.641 million US dollars per day, of which the main revenue is attributed to Photon, Trojan, BonkBot, Banana Gun and Bullx. The revenue of these five projects has accounted for 96% of the entire track. Therefore, we can see that the revenue of the Dex Trading Bot track project is very high, and it is currently in a low period of market trading. On March 18, when the trading volume was at its peak, the revenue peaked, reaching a daily revenue of 29.038 million US dollars, of which BonkBot can reach a single-day revenue of 22.81 million US dollars, which can exceed the revenue of any DEX and any other project in the market. So we can see that the income level of the Dex Trading Bot track project is very high.
Dex Trading Bot Track Representative Project
From the table, we can see that the top five projects in the Dex Trading Bot track are: Photon, BonkBot, Trojan, Banana Gun, and Sol Trading Bot. In terms of total trading volume, although Banana Gun ranks fourth, its cumulative trading volume is very close to that of Trojan, which ranks third, but it is far behind Sol Trading Bot, which ranks fifth. Therefore, we will introduce the four projects in the first echelon: Photon, BonkBot, Trojan, and Banana Gun.
Photon
Photon is a Dex Trading Bot based on the Solana chain. It is currently the number one bot in the Dex Trading Bot track, with a cumulative trading volume of $9.987 billion. Its main functions include:
Memescope: Photon works with Pump.fun and Moonshot to provide traders with information about each token before they buy it. It can independently create all the indicators that traders care about when deciding which tokens to buy, and mark the source of each message, providing traders with greater flexibility and convenience.
DCA Fixed Investment: Photon allows users to create DCA fixed investment orders based on their own investment plans and risk preferences. They only need to enter the amount they want to buy or sell, the time interval between each order, the total amount they want to buy, the target range of market value (minimum/maximum) and the order expiration time (24/48/72 hours). They can also specify the priority and bribe amount used for each DCA order.
Limit order: There are three types of limit orders on Photon: buy on dip, stop loss and take profit. When using a limit order, users only need to set the amount of MC drop or rise, or use the target line provided by Photon, and then set the time.
Smart-MEV protection: When trading, there is a Smart-MEV option. If the trading user wants to complete his transaction as quickly as possible, he needs to select this option. After selecting it, there will be a choice of using 0.0001 SOL for bribery each time, which is greater than or less than 0.0001 SOL. When selecting greater than, it will be used for each operation. If selecting less than, it will only be used when JITO accepts the transaction order.
Photons main function is to help users quickly buy tokens in the cryptocurrency market, and at the same time provide other financial services such as limit orders and DCS fixed investment. Photon also cooperates with Pump.fun and Moonshot to provide users with more and more extensive token information. Its users can safely purchase tokens that have been listed on Ethereum and Solana. Photon sets a user transaction fee of 1%.
BonkBot
BonkBot is a Dex Trading Bot developed by the Bonk community. It is currently the largest trading bot in the Dex Trading Bot track, with a cumulative trading volume of $7.59 billion. BonkBot is known for its simple user interface. Its main functions include:
Simplified trading process: Users can simply paste the token address into a Telegram chat and execute a purchase transaction instantly without connecting a wallet or making slippage adjustments.
High performance and high efficiency: BonkBot has extremely high speed and superior execution capabilities, which can complete buying and selling operations in a short time, greatly reducing waiting time.
MEV Protection: BonkBot has partnered with Jito Labs to provide advanced MEV protection that accelerates transactions by default and protects against front-end transaction attacks.
Referral system: Through the referral mechanism, users can earn a portion of the transaction fee as a reward, further incentivizing users to use the platform.
Because BonkBot is built on the Solana chain, and Solana mainly relies on the issuance and prosperity of Meme coins in this bull market, and Dex Trading Bot was mainly born because of Meme coins and Tugou, so with the blessing of Meme coin culture on Solana native chain, BonkBots trading volume and number of users have increased significantly. And its ecosystem has been supported by BONK, which has enhanced its market influence and user stickiness. At the same time, BonkBots cooperation with Raydium has further improved BonkBots market performance and user experience. BonkBot sets a user transaction fee of 1%.
Pistol Pisang
Banana Gun is a Telegram-based Dex Trading Bot. It is currently the third most traded bot in the Dex Trading Bot track, with a cumulative trading volume of $5.69 billion. Its main features include:
Sniper function: Banana Gun can help traders quickly buy or sell assets at a specific time point, especially when a project is launched, to capture the best opportunities in the market. In the trading market, it can help investors grasp the best trading opportunities and achieve better investment returns.
MEV Protection: Banana Gun offers advanced MEV protection that accelerates transactions by default and protects against front-end transaction attacks.
Maximum cost: Banana Gun has added slippage control and limit orders to its trading package, and can set a maximum cost to limit the amount of tokens and gas that users are willing to spend. When dealing with tokens with a maximum trading volume, the token contract code limits the maximum amount that can be purchased in one transaction. If the maximum allowed transaction volume is reached, any remaining ETH will be refunded to the user. If the transaction cannot meet the maximum allowed purchase amount, it will be automatically reversed.
Banana Gun鈥檚 main function is to help users quickly snap up tokens in the cryptocurrency market, and is particularly good at opening sniping operations. Its users can safely purchase tokens that have been listed on Ethereum, Solana, and Base Chain, and be the first to buy new coins when they are released. BananaGun sets a user transaction fee of 0.5%.
Trojan
Trojan is a Dex Trading Bot built on the Solana chain. It is currently the fourth most traded bot in the Dex Trading Bot track, with a cumulative trading volume of $5.62 billion. Its main features include:
One-click copy trading function: Trojan bot can track up to 40 wallets at the same time. The other operation functions of one-click copy trading are basically similar to other Dex Trading Bots. Compared with other bots, it can track more wallets, helping trading users to obtain more trading references.
DCA Fixed Investment: Trojan allows users to purchase cryptocurrencies regularly with a fixed amount or quantity according to their own investment plans and risk preferences. Regardless of whether the market is rising or falling, users can regularly purchase assets with the same amount or quantity. This not only helps traders to diversify investment costs and reduce the impact of market fluctuations, but also avoids purchasing assets at market highs, optimizing the investment of traders themselves. And Trojans DCA function can automatically perform purchase operations.
Trojan was formerly Unibot on Solana, which was developed by Reethmos, the former head of Unibot community operations. It was originally a product of Unibot, but was renamed Trojan after its success. The trading interface of Trojan is similar to that of Unibot. Trojan sets a user transaction fee of 1%, which can be reduced to 0.9% through the recommendation of other users.
Meringkaskan
Dex Trading Bot is a special trading track generated by the demand of traders in the market for buying and selling Meme coins. The main user group served by Dex Trading Bot is the traders who buy and sell Meme coins. In the past six months, according to the trading volume and user data of Dex Trading Bot, Dex Trading Bot, as an efficient and convenient trading tool, has shown great potential and appeal in the cryptocurrency market. Some of its unique features have attracted the attention of a large number of users and investors. Although the current data has dropped significantly compared to when it was hot, it is still quite healthy overall.
From the revenue of the Dex Trading Bot project, we can see that the Dex Trading Bot projects ability to make money can be described as a money printing machine, and even when the market was hot, it had exceeded the revenue of the top DEX in the market. From the perspective of project profitability, the Dex Trading Bot project team will have sufficient motivation to continue to innovate and optimize the project.
From the perspective of future development, the Dex Trading Bot project is a specific manifestation of the intention-centered track, and this manifestation can only be expressed in a form that is more in line with the trading users operating experience. Now the AI track in the market will be the future development direction, so Dex Trading Bot will actively integrate AI technology in the future, making the Dex Trading Bot project more intelligent and more in line with the interests of trading users.
This article is sourced from the internet: Trading Bot: Another way for Dex to survive
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