Dex Bots: Another Way to Survive DEX

Since the fourth quarter of 2023, the cryptocurrency market has shown a clear bullish trend, and the Meme token market has also experienced significant growth. These types of tokens have enormous potential for value growth in the short term, attracting a large number of investors, but they also exhibit extremely high volatility and short market cycles, with some tokens having active trading periods of less than 10 minutes.

Technical factors such as blockchain network congestion and operational speed limits require transactions to be conducted in seconds, increasing investor risk, especially the likelihood of buying at market peaks. To address the demand for fast trading and reduce issues like MEV loss, the decentralized exchange trading Bots (Dex Trading Bot ) has emerged.

Mainstream exchanges have successively launched related products, and the Dex Trading Bot sector has quickly gained market attention. Analysis shows that these tools not only have excellent usage rates but also demonstrate strong profitability, accumulating a large number of real users.

With a broad user base, clear application scenarios, and significant profit potential, Dex Trading Bot is becoming an emerging area in the cryptocurrency market that deserves close attention.

Dex Trading Bot Introduction

Dex Trading Bot is an automated trading tool designed specifically for DEX traders, aimed at optimizing the trading experience. Its main features include automatic order placement, portfolio management, and setting stop-loss and take-profit levels. These Bots can monitor and trade the cryptocurrency market 24/7, increasing the chances of capturing favorable trading opportunities.

Automated trading is achieved through smart contracts, allowing usage without programming skills. The current Dex Trading Bot also supports cross-chain trading and multi-platform operations, offering various strategy options such as arbitrage, copy trading, and grid trading to help users find the best profit opportunities.

The Dex Trading Bot can also achieve more complex trading operations through automated APIs, such as limit orders, market orders, and canceling orders. This powerful automation tool can significantly improve trading efficiency and profitability, making it particularly suitable for users who wish to trade efficiently on decentralized exchanges, especially traders chasing on-chain "shitcoins" and meme coins.

Dex Trading Bot Services

The reason why the Dex Trading Bot is widely popular among trading users is that it offers more services compared to DEX:

Automated Trading

Use the Dex Trading Bot to automatically execute trades, saving time and effort. Users only need to set the trading strategy and conditions, and the Bots will automatically execute the trades. This helps to better grasp market changes, seize trading opportunities in a timely manner, while reducing the impact of human factors.

Optimize trading experience

Equipped with functions such as stop loss, take profit, and trailing stop loss, it helps users better control risks and profits. With intelligent algorithms and real-time market data analysis, it can assist users in making rational trading decisions, avoiding emotional behaviors, and improving trading success rates and returns.

Sniping Function

Provides the functionality for fast purchase at market opening or pre-sale. It can quickly buy or sell assets at specific time points to capture the best market opportunities. Based on preset conditions and strategies, it reacts swiftly to market changes, enabling rapid buying and selling of assets to better leverage market fluctuations for profit.

One-click copy trading

Allows users to select one or more trading entities they believe have a high win rate, and automatically follow their trading actions in real-time. When the monitored entity executes a trade, the Bots will immediately replicate the action. This enables users who lack the time and expertise to analyze the market to enhance their trading success rate.

Limit Order and DCA

Limit orders can be partially filled, allowing you to obtain the filled portion of tokens. When submitting a trade, Bots will select the optimal path based on the settings, order validity period, exchange price, and quantity to maximize trading benefits. This helps to avoid cost increases and slippage issues caused by price impacts, while also mitigating MEV.

The DCA investment feature allows users to set up a regular and fixed investment plan for the future, keeping the buying cost within the expected price range. Users only need to set the purchase frequency, price range, total duration, and cryptocurrency, and the Bots will automatically execute the trades and transfer the tokens to the associated account.

Dex Trading Bots分类

According to the profit model, it can be divided into three categories:

Subscription Fee System

A subscription fee must be paid for usage rights, usually around 0.1 ETH for 1 month or 1 ETH for 1 year. This is often seen in communities or small circles, such as KOLs bringing orders to their fans.

transaction fee

Similar to DEX, a fee of about 0.5% to 1.5% is charged for each transaction based on the amount, excluding DEX fees. Some projects will distribute revenue to token holders, creating a positive cycle.

Hybrid

Combine subscription fees with transaction fees. For example, Maestro primarily charges a 1% transaction fee while also offering a VIP community service for $200 per month, providing selected Smart Money addresses or wealth codes.

Advantages Compared to Traditional DEXs

Quick response

Once the target price is triggered, the transaction is executed immediately to avoid delays in manual operations. It can still execute quickly during on-chain congestion, making it especially suitable for users who have high demands for the speed of purchasing at market open.

Automated Trading

7*24 hours automatic monitoring of the market and executing trades, saving time and effort, allowing investors to focus on market analysis and strategy formulation.

Reduce MEV loss

Effectively prevent MEV attacks through technology. Users pay about 1% in fees, and the savings on slippage costs often exceed the fees, significantly reducing transaction costs.

High Flexibility

You can customize trading strategies and parameters according to your needs, adapting to different investment strategies and risk preferences, improving trading efficiency and risk control.

Enhance user experience

Provide convenient trading, monitoring, and analysis tools to simplify processes, offer comprehensive market information and analysis reports, helping users seize opportunities to achieve stable returns.

Market Data Analysis

According to the latest data from Dune:

Transaction volume and users across chains

The daily trading volume is approximately $105.54 million, mainly concentrated on Solana ( at $74.78 million ) and Ethereum ( at $20.15 million ). Solana has 161,200 daily active users, Ethereum has 36,900, and Base has 10,200. The average transaction per user for Solana is $463, for Ethereum is $546, and for Base is $96.42.

User Growth Trend

The market has been fluctuating for nearly 4 months, with active users maintained at 58,000 to 60,000. During the bull market, growth was rapid, peaking at 120,000 on March 18. Usage is significantly affected by market activity.

Trading Volume Trend

It is positively correlated with the number of users. During peak periods, it reached 700 million, and is currently around 100 million. In a bull market, existing users increase their investment amounts or trading frequency, and the growth rate of trading volume surpasses that of user growth.

income situation

Daily revenue reached $1.641 million, with Photon, Trojan, BonkBot, Banana Gun, and Bullx accounting for 96%. On March 18, it peaked at $29.038 million, with BonkBot's daily revenue at $22.81 million, surpassing most DEX projects.

Project Introduction

Photon

Based on Solana, cumulative trading volume of $9.987 billion. Main features:

• Memescope: Provides information related to tokens
• DCA Investment: Custom Investment Plan
• Limit Order: Buy on Dips, Stop Loss and Take Profit
• Smart-MEV Protection: Quick Transaction Completion

Transaction fee 1%.

BonkBot

Developed by the Bonk community, with a cumulative trading volume of $7.59 billion. Features:

• Simplify the trading process: Execute through Telegram
• High performance and efficiency: quickly complete buying and selling
• MEV Protection: In collaboration with Jito Labs
• Recommendation System: Earn Transaction Fee Rewards

Fee 1%.

Banana Gun

Based on Telegram, the total trading volume is $5.69 billion. Main features:

• Sniping feature: Quickly snatch up new coins
• MEV Protection: Accelerate Trading to Defend Against Attacks
• Maximum spending limit: Control transaction costs

Supports Ethereum, Solana, and Base chains, with a fee of 0.5%.

Trojan

Based on Solana, with a cumulative trading volume of $5.62 billion. Main features:

• One-click copy trading: track up to 40 wallets.
• DCA Investment: Automatically execute purchase operations

Transaction fee 1%, recommended user 0.9%.

Summary

The Dex Trading Bot, as an efficient and convenient trading tool, has shown great potential in the cryptocurrency market. Its unique features have attracted a large number of users, and the project's revenue is considerable. In the future, it may integrate AI technology to further enhance its intelligence level, better meeting user needs.