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In 2020, we may finally be seeing the first signs of a true mainstream adoption of cryptocurrencies and blockchain technology. With the massive influx of new investors to cryptocurrencies and DeFi, automated yield farming is becoming the order of the day. While there are many platforms out there that enable their users to generate a passive income, Upbots might become the one that combines them all. Let us take a deeper look at this ambitious project.
Automated Trading
An ongoing problem in the crypto trading community is that there is a huge disparity between amateur traders who are just starting out with exploring crypto and seasoned veterans who already know all the ins and outs of technical and fundamental analysis. Upbots seeks to close this gap by giving their users the option to automate their trades, using either trading signals, bots, or through copying all trades from another experienced user.
Either way, users who share their knowledge by making automated trading opportunities available to other users receive a commission on all profits, payable in the platform’s UBXT utility token. This enables amateurs to profit from the knowledge of others, while the more experienced traders receive fair compensation and thus have an incentive to make their knowledge available on the Upbots marketplace.
Existing Partnerships
Upbots is registered and regulated and Switzerand and is being developed by Solfin Consulting. Led by Benjamin Duval, an experienced business manager, Solfin also has 4c-Trading and BrainFeed under their umbrella, which will both become an integral part of the Upbots ecosystem.
4c-trading offers trading signals and in-depth market reports. The company came into existence through a merger between two industry-leading signal providers, Crypto-Addicts and CryptoMedics. In June 2018, they released their trading smart bot, which has turned an ROI of almost 140 % since its inception. All products of 4c-trading will become available on the Upbots marketplace.
BrainFeed is an online learning platform for all things related to cryptocurrencies, blockchain technology, and trading. Alongside other leading training providers, their learning material will also be incorporated into the Upbots ecosystem, hosting their online courses on the platform for traders to improve their skills.
Cross-Platform Trading
The Upbots dashboard will combine multiple exchanges through their respective APIs. This makes it possible to always trade at the exchange that offers the best price and trading fees. This also facilitates many algorithmic trading options, such as arbitrage trading and market making.
At the moment, Binance, BitMEX, Bittrex, CoinbasePro, Kraken, ByBit and OKEx are confirmed to become available on the Upbots dashboard, with more to follow. Over time, the platform wants to connect all major exchanges that have a sufficiently high liquidity. Upbots can instantly execute trades and use the Upbots charting and risk management tools on all of these exchanges.
Moreover, Upbots has recently joined forces with DEX.AG as their first DeFi partner. DEX.AG is an aggregator across 11 different decentralized exchanges (DEXes), which can instantly find the best price and guarantee the best conditions through their X Blaster feature, even for large orders. If necessary, X Blaster splits up an order and automatically distributes it to multiple DEXes, thus finding the best total price and avoiding price slippage as good as possible.
Through the partnership with DEX.AG, these 11 DEXes will be added all at once to the Upbots dashboard, thus increasing the potential trading opportunities and marking the platform’s first steps into the DeFi sector. Ultimately, besides trading on centralized exchanges and swapping tokens on DEXes, Upbots users will be able to add liquidity to various DeFi protocols.
In a next step, Upbots also want to connect to Forex exchange, in order to tap into this market as well. These features will be rolled out in the near future and will also be available on the Upbots dashboard.
UBXTokenomics
As mentioned earlier, Upbots will operate their own ERC-20 utility token called UBXT. This token will be used in order to pay for subscription fees for the platform itself and online courses. It will also be used to pay for any subscriptions to trading signal providers, as well as a part of the commission on bots and social copy trading.
Instead of paying fees, UBXT holders may also elect to stake their tokens in order to receive certain benefits, such as reduced prices or free subscriptions. The most interesting feature of UBXT is possible as a reward for participating in the “ask the market” prediction game, which will be used to gather intel on the market sentiment.
Upbots has already completed two rounds of private sales for UBXT. A third, public round will be announced soon.
Conclusion
Algorithmic trading and automated investment opportunities are gaining significance. The crypto derivatives exchange FTX estimates that up to 90 % of all trades on the platform are executed by bots, judging by how many orders are being entered through their API, instead of the exchange’s web interface.
The profits traders reap on a regular basis will be more and more co-opted by trading algorithms, as profitable manual traders increasingly switch over to algorithmic trading. As Upbots CEO Benjamin Duval said in a recent interview
“The market, and more particularly the traditional market, is mainly traded (more than 70% of positions) by algorithms. The main reason is the size of the major players in the classical market such as equities or forex. […] Indeed, the average retail trader will continue to be robbed on the market, it has always been like that and it will always remain so. The stock market is a zero-sum game, you need a loser for every winner.”
While there are plenty of automated trading bots, they are merely stand-alone projects with no marketplace to connect them. Upbots wants to create such a marketplace with UBXT as a utility token for subscription fees and commission payments. Thanks to the plethora of automated trading opportunities on the Upbots marketplace, users will be able to put their money on autopilot and thus profit from the trading knowledge of others, while improving their own knowledge through online training courses.
This is very congruent with the notion of passive income that we are getting used to thanks to DeFi. As such, Upbots only takes the logical next steps with their first ventures into the DeFi sector in cooperation with DEX.AG.