VolumeFi team members Vera Behr @v_behr, Head of Product, and Zhibai Zhang @FieldTheory, DeFi Strategist, host this week’s AMA episode. They talk more about Paloma bots with a special focus on TWAP bots. They also discuss the significance of the partnership with CoinGecko enabling Paloma users to access API services including new token listing endpoints.
Vera also reports on the initial success of the recent launch, the hottest Paloma bots ranked, transaction volumes, and the ever-growing number of bot users.
Vera welcomes all listeners to Volume’s Twitter spaces. She gives an overview of Volume:
Paloma bot is the primary application on the Paloma chain and also one of the main products of Volume Finance. FieldTheory shares how Paloma bots help crypto traders:
He adds that many users will enjoy the products, benefitting day traders who trade crypto tokens in the short term. Paloma bots are built to help liquidity providers and loan owners protect their positions from risks of liquidation and de-pegging.
FieldTheory notes that in recent weeks, the crypto market experienced a major sell-off, while there was some surge on the upside. In the current sideways market, traders tend to go for short-term actions and Paloma bots can be used to capture these signals.
Vera asks FieldTheory what Paloma bots can offer to traders, especially in a sideways market. FieldTheory starts with the TWAP bot which is particularly useful for large orders. He discusses why it is wiser to break down large orders into smaller pieces.
He cites an example where a user is looking to trade 5000 USDC for Eth:
FieldTheory states that those who want to use the Paloma TWAP bot can go to the website,
palomabot.AI
, where users can connect their wallets and indicate their preferred pre-defined parameters. All transactions go through the smart contract and the Paloma bot will take it from there. The whole process is fully automated and the private keys are secured by validators. Vera adds that users can keep track of their funds in real time using Telegram alerts whenever a trade is made.
TWAP bots are also enabled to do dollar-cost averaging or DCA usually used for longer-term investments. Users can change the schedule when they want to do the trade. They can simply change the interval on the TWAP bot’s pre-defined parameter or scheduler to the desired time interval.
FieldTheory talks about Paloma bots’ internal mechanism.
Paloma bots are predominantly deployed on Curve pools that include the TWAP bot, among others. Plans to expand to Uniswap V2 Ethereum and PancakeSwap to Binance Smart Chain (BSC) will allow users to trade tokens in those DEXs.
Certain tokens only exist on Ethereum and some in BSC. He adds that once Paloma bots are deployed on those chains or DEXs, users can use TWAP and Momentum bots in those specific DEXs.
Paloma has teamed up with CoinGecko which is one of the largest crypto data providers. This significant collaboration allows Paloma to use their API services including their new listing endpoints. New token listings are constantly detected and monitored which are converted into API endpoints. Paloma’s GeckoBot New Tokens provide a dashboard for the newly listed tokens that users can discover. FieldTheory shares the benefits of this important collaboration:
Vera reports that the TWAP bot deployed on Curve is, by far, the most popular bot with over 3 million USD in transaction volume. This translates to 3 million worth of tokens purchased using the TWAP bot. The Momentum bot deployed on Uniswap and PancakeSwap V2 comes in second with more than 7000 USD worth of tokens traded. The third most popular is the Limit Order bot deployed on Curve with over 3000 USD in transactions.
A total of 109 bots were created by users as of date. Vera clarifies that multiple trades ensue depending on the type of bot that was used. All in all, the success of the launch of bots is a great validation for the Paloma team and bolsters their commitment to double down on the work ahead.
This initial success translates to increased revenue from collected fees and it means that validators can be reimbursed for gas fees across all target chains. Having revenue-generating multiple DAPs built on top of the Paloma chain is important to us, she acknowledges. Over 5000 USD in revenue has been generated for gas reimbursement fees which go directly to the validators. This ensures that the Paloma network is sustainable and will only continue to grow.
FieldTheory and Vera acknowledge the crucial role of the community of validators in securing the network and relaying messages. They extend a big thanks to all validators for the amazing success of the Paloma bot launch in the first week alone. Plans are underway to create more bots which means increased revenue and more fees to collect for validators. Vera emphasizes that as Paloma launches more bots onto the chain it increases validator happiness and also the value of the entire network.
Stay tuned for the next AMA!
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). Coo!