Research Summary
The report discusses the rise of trading bots in the cryptocurrency market, focusing on Unibot, Bananagun, and Shuriken. It also covers the efforts of AAVE to stabilize its native CDP stablecoin, GHO, through governance actions and interest rate adjustments.
Key Takeaways
Trading Bot Landscape
- Unibot’s Success: Unibot, a trading bot, has gained significant market share, driving massive amounts of revenue back to early adopters. It has paid out over $8m to token holders. The bot’s success was fueled by the rise of $PEPE, which reached a $1.5b FDV in just 21 days.
- Bananagun’s Growth: Bananagun, another trading bot, has been steadily gaining in volume, fees, and users, reaching a high of $18m in daily volume. Despite this, it still trails behind Maestro’s top volume day at $48m.
- Maestro’s Dominance: Maestro, the first mover in the trading bot sector, remains the market leader despite not having a token. It has facilitated $3.1b in volume in its nearly 18 months of being live and has generated over $30m of fees.
- Shuriken’s Potential: Shuriken, the fastest-growing trading bot in volume and fees, has overtaken Unibot in just six weeks. It is well-positioned to capitalize on the future growth of the sector, with a token confirmed and a rewards leaderboard in place.
- Overall Sector Performance: The top three bots have generated $4.327b in volume, 303,484 cumulative users, and 30,596e ($64m) in total fees. The combined token market cap across the entire bot sector is $231m, suggesting potential for significant growth.
AAVE’s Efforts to Repeg GHO
- Addressing Depreciation: AAVE has taken steps to address the depreciation of its native CDP stablecoin, GHO. These include introducing an incentivized GHO Safety Module and proposing an increase in the borrow rate to 5.22%, more in line with market rates.
- Impact on GHO Price: These measures have led to a rally in the price of GHO and are expected to contribute to a full repeg. Stablecoin price stability is crucial as it drives confidence and increases usage.
- Future Plans: There are plans to direct protocol revenues in GHO and ETH to AAVE stakers in 2024, which could make the year exciting for the crypto bank.
Actionable Insights
- Consider the Potential of Trading Bots: The report suggests that the trading bot sector is poised for growth, with potential for a sector market cap of billions in the next few years. Investors may want to consider the potential of these bots and their tokens.
- Monitor AAVE’s Efforts: AAVE’s efforts to stabilize GHO could have significant implications for the stablecoin and the crypto bank. Stakeholders should monitor these developments closely.
- Explore Shuriken: Given its rapid growth and confirmed token, Shuriken could be a promising opportunity. Interested parties may want to explore this trading bot and its offerings.
