Trading application Unibot has announced the issuance of a native Solana ecosystem token, UNISOL, causing a stir in the market and triggering volatile price action last week. The move, which initially met criticism from long-time UNIBOT holders, is intended to accrue value back to the holders of the original Ethereum-based UNIBOT tokens.
Trade now: https://t.co/Mq0O2BZB1N
— Unibot On Solana (@UnibotOnSolana) January 26, 2024
Unibot is a trading tool built within Telegram that allows users to execute on-chain token trading activities on Uniswap through conversations on the messaging platform. The bot offers features like token swapping, copy trading, limit orders, privacy trading, and real-time alerts for new Ethereum tokens.
Unibot expanded its operations to the Solana ecosystem in late December, but introducing the UNISOL token last week raised concerns among UNIBOT holders. Fears of dilution led to a sell-off as traders seemed inclined to favor the newer UNISOL token over the original UNIBOT.
However, developers reassured the community on Monday that UNISOL could enhance UNIBOT’s value accrual, potentially alleviating recent losses as traders factored in new information. Unibot facilitates user wallets’ connection to the decentralized exchange Uniswap, enabling seamless token trading similar to messaging on popular platforms like Telegram or a terminal.
Developers explained the revenue-sharing mechanism for protocol-generated income by @UnibotOnSolana, splitting it 50/50 between two pools. The first pool benefits holders of UNIBOT on Ethereum, who link their Ethereum address to a Solana address receiving revenue in SOL. The second pool rewards holders of UNISOL on Solana.
UNIBOT holders are slated to receive approximately 80% of the UNISOL supply through a snapshot and claim mechanism. Despite the recent sell-off, developers believe this integration could enhance UNIBOT’s value proposition.
Users can interact with Unibot directly on Telegram, streamlining the process of making token trades without switching between social and decentralized finance (DeFi) applications. Unibot charges transaction fees ranging from 0.5% to 1.5% for each transaction, with 80% of its income generated from these token trading taxes.
Since its launch in early January, Unibot has attracted over 20,000 users, generating more than $130 million in total volume, according to developers. The platform’s user base has steadily increased, reaching 41,000 on Monday, up from just over 2,000 at the end of June.
Unibot Expands to Solana with Unisol Aiming to Boost Revenues Amid Shift in Memecoin Trading Activity
According to Dune Analytics data, out of the current 3,280 ETH revenue captured by Unibot, 2,843 ETH comes from the UNIBOT token trading tax, with less than 20% generated from the main bot trading business. On Sunday alone, according to Dune Analytics, Unibot generated $74,000 in fees across Solana and Ethereum, with average daily volumes exceeding $5.5 million.
The application’s revenue model revolves around two primary methods: bot trading fees and the trading tax of its native token, UNIBOT. The former involves the platform charging a 1% fee on each transaction, with 40% distributed to token holders. The latter is a 5% tax on all UNIBOT token transactions, with 1% allocated to token holders.
However, revenues generated by Unibot are shared with token holders who possess at least 10 UNIBOT. Token holders have received over 4,496 ETH in total rewards, valued at over $11.3 million at current prices.
Token holders can enhance their rewards by sharing their unique referral code, earning 25% of the total fees generated by anyone using their referral code. Stakers can expect a 9.43% annual percentage rate (APR).
Unibot’s strategic expansion to the Solana blockchain comes amid a booming period for blockchain trading in December. Decentralized exchanges on Solana have now become the third-most active among traders, following those on Ethereum and Arbitrum.
Last summer, Ethereum experienced a similar memecoin frenzy driven by platforms like Unibot and Maestro, leveraging Telegram trading bots. As activity metrics on Solana return to normal after a year-end surge, Unibot’s move to Solana aims to capitalize on the blockchain’s increasing popularity among traders.
During its peak in August, Unibot facilitated over $8 million in daily trading volume through its Telegram interface, generating more than 11,400 Ether worth $29.5 million in lifetime fees. However, with a significant portion of memecoin trading activity shifting from Ethereum to Solana, Unibot’s revenue also experienced a decline.
Popular trading bots are following the Solana trend to boost revenues, yielding positive results. Unibot’s eponymous token has surged 85% over the past month, trading around $94.
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