Opportunity for Trading Bots on Decentralized Exchange Protocols
Blocknet has built a decentralized exchange protocol which is specifically designed to enable trading bots to easily integrate.
The benefits of using an arbitrage bot on a decentralized exchange protocol are as follows:
- liquidity is pooled so there are a plethora of exchanges to arbitrage across as bots arbitraging different markets link in (no need for multiple CEX accounts)
- No deposits and withdrawals fees
- low fee (currently a flat fee of the than 3 cents per trade!!)
- quick transfer confirmation time when moving between markets
Bots just started last week, so there are currently only two bots trading on the decentralized exchange protocol, both on the trading pair (BLOCK/LTC) and they are doing about $3,000 – $4,000 in volume daily currently (You can see volume chart here: https://blockdx.co/charts).
There is ample opportunity for bot traders on blocknet's decentralized protocol.
The tools to build a bot on the Blocknet protocol can be found here: https://github.com/atcsecure/dxbottools
There is also a channel for Bots in the Blocknet Discord dedicated to bot trading (#dx-bots)