This week’s AMA episode drops an amazing surprise for the Paloma community. The host, Taariq Lewis @LewisTaariq, CEO of VolumeFi (volume.finance) announces Paloma’s $1000 Sweepstakes! A thousand dollars will be given away for every 100 bots created by users on Paloma.
Twenty-seven bots are now live and running on Paloma. Zhibai Zhang @FieldTheory, DeFi Strategist joins in the conversation and shares an overview of Paloma’s most popular bots, the TWAP and Momentum bots. He also introduces the newest addition, the Curve Lending bot.
Continuing upgrades and new releases on the Paloma network are also discussed paving the way for GRAIN to fly cross-chain.
AMA – Ask Me Anything
Private key - a cryptographic key that is used with an asymmetric (public key) cryptographic algorithm. Used to compute a digital signature that may be verified using the corresponding public key, it is uniquely associated with the owner and is not made public.
Bots - automated software tools designed to handle the buying and selling of cryptocurrencies based on predetermined parameters to generate profits.
Validator - or Pigeon in Paloma-speak, a participant on a Proof-of-Stake (PoS) blockchain whose job is to validate transactions on the network for rewards. They are responsible for network security, transaction validation, and consensus building.
Mainnet - a distributed, operational digital network that officially serves as the primary infrastructure for a particular cryptocurrency. It signifies the project is ready for public use and real-world transactions.
GRAIN - also called Pigeon feed, is Paloma’s native token.
Gravity Bridge - a trustless, neutral bridge between the Ethereum and Cosmos ecosystems built by the Althea team. Built using the Cosmos SDK, it uses the validator set to sign transactions instead of a multi-sig or permissioned set of actors.
RPC – short for Remote Procedure Call, is a type of computer server that allows users to read data on the blockchain and send transactions to different networks.
DEXs - short for decentralized exchange is a peer-to-peer marketplace where users can trade cryptocurrencies in a non-custodial manner without the need for an intermediary to facilitate the transfer and custody of funds.
TWAP - stands for time-weighted average price. It's a pricing algorithm used to calculate the average price of an asset over a set period.
Momentum - the rate of change in price movement over time to help investors determine the strength of a trend. Momentum is used by investors to trade in an uptrend by buying or selling in a downtrend.
Curve – or Curve Finance, is a decentralized liquidity pool for stablecoin trading. Instead of an order book, it uses an AMM (automated market maker) model to match liquidity. The constant product formula of the AMM ensures maximum efficiency while incurring a minimum of slippage for traders.
Uniswap V2 - implements a new functionality that enables highly decentralized and manipulation-resistant on-chain price feeds.
PancakeSwap - a decentralized exchange that allows you to trade tokens while also offering opportunities to profit from liquidity pools and staking. It runs on Binance Smart Chain (BSC) instead of Ethereum.
Smart contracts - programs stored on a blockchain that run when predetermined conditions are met. They are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary's involvement or time loss.
Slippage - describes the difference between the expected price of an asset and its actual execution price. Though small differences in pricing can frequently occur while investing in cryptocurrencies, they can also have significant impacts if not appropriately monitored.
Taariq welcomes everyone to Volume’s weekly update on the Paloma network. He shares a brief about Volume:
“We are decentralized custody and trading bots on the Paloma blockchain. Our goal is how to use bots to manage private keys securely and have private keys work across different chains.”
He adds that the Volume team behind the Paloma protocol is passionate about AI, data mining, machine learning, statistics, and Golang. These tools enable more useful automation for the community.
He thanks all validators who run servers to keep the Paloma network live and running. While relaying messages across blockchains remains a key function, Paloma also boasts of the successful launch of multiple bots for crypto trading.
27 Paloma Bots
The Paloma network is live on the mainnet with 30 active validators. There are a total of 27 Paloma bots to date, with more coming soon. The transaction volume for bots climbed to over $16 million since the launch last August.
Taariq shares his appreciation to validators for a great job and stresses that the focus is to ensure that Pigeons can make a profitable business out of relaying messages to other chains by charging their own fees.
Upgrades, Fixes and New Releases
Taariq states that the Gravity Bridge on Paloma is currently on release 1.8.0 and will be upgraded to 1.8.2 to fix the issues and reduce jailing. He assures that the team is relentless in continuously upgrading the system and focus. The issue for relaying has been identified and resolved on testnet. Relaying will be restored on the mainnet by Monday.
Taariq also mentions that the team has been able to decrease RPC calls. He explains that RPC calls are a necessary part of Gravity to monitor the chains to see when bridging needs to occur. He points out that the goal is to get the GRAIN token ready for deployment and execution across chains.
“When GRAINS are functioning as a bridge and working, anyone can take their GRAINS across the bridge and trade them, particularly validators.”
Once the GRAIN is listed for trading, the community will launch pools, and validators who have been collecting GRAIN rewards can trade them for money and get exit liquidity. He stresses the importance of increasing usage:
“Now what we need is more people to have and want GRAINS. The way we do that is we need to invite people to use Paloma. We’re going to pay users to come use Paloma bots on Paloma.”
Taariq announces the big reveal. Paloma will be giving away ONE THOUSAND DOLLARS for every 100 bots created on Paloma by users!
“We are going to give a lucky address a thousand dollars on the 100th bot. That means that anybody who comes to palomabot.ai and hits ‘start’ on Telegram’, gets entered in and they can qualify to win a thousand dollars.”
The sweepstakes is open to validators as well. Every validator can win a thousand dollars for the 100th bot that is created.
“We have 27 bots so far. That means that there are 73 bots left to go. And so we just need 73 starts on the Telegram bot, and then boom, somebody will get a thousand dollars.”
The rules will be published on the website, palomabot.ai. Those who can enter must be 18 years or older. US residents must provide proof of identity to receive the money, net of tax. Taariq maintains that this is not a token sale. Paloma is not trading tokens. There is no purchase required, he assures.
“You don't have to purchase anything. Just hit ‘start’ on Telegram. You can do only one bot per Telegram account, but you can create as many Telegram accounts as you want.”
The winning address will be announced on Volume’s Telegram and Discord on Twitter.
An Overview of Paloma Bots
FieldTheory discusses the most popular Paloma bots and their functionalities.
He explains that all bots are deployed on Ethereum and Binance Smart Chain. As most bots are built on top of DEXs, they are available on Curve, Uniswap V2 on Ethereum, and PancakeSwap on Binance Smart Chain.
The most popular bot is the TWAP (time-weighted average price) bot. It is an execution bot best used for larger trades. The TWAP bot breaks down the transaction into multiple smaller trades at the user’s preferred time intervals. TWAP helps avoid slippage by smoothing out the price impact giving the user a much better execution price. FieldTheory expounds:
“When you have a large trade, and you are swapping one token for another at a fairly large amount, there's something called slippage. If you're swapping large amounts, you lose quite a bit percentage-wise in the process. One way to reduce the cost is to break down this one big trade into multiple smaller trades executed at predefined timestamps.”
Paloma’s TWAP bot is available on Uniswap V2, Curve, and PancakeSwap. He explains the process:
“All you need to do is go to Paloma bot’s front end, specify which tokens you are swapping into, and what's your input token. You then tell the front end how many trades you want to break into and the time interval between trades. After you click ‘start the bot’, your tokens will be sent into a smart contract. The contract will run a scheduler that sends these trades into the corresponding DEXs.”
The second most popular bot is the Momentum bot. With the thousands of tokens in crypto space, the Momentum bot keeps track of tokens with the highest short-term returns. He discusses how it works:
“If you want to speculate on some of these short-term high momentum tokens, you can simply visit the front end and you will see a dashboard with a collection of these coins. And then you can choose one or several of them to trade. The bot will then start a profit-taking and stop-loss risk management program running on a scheduler. The bot will exit your position if the coins price either reaches the highest value that you chose or the lowest value that you want to protect yourself from.”
There are 27 Paloma bots in total, and more will be launched soon. He announces that Paloma bots will be expanding over to lending as well.
“One of the newcomers is the Curve Lending bot. It is designed to help lenders and borrowers protect their collateral. The bot automatically tracks the user’s lending position and exits if the risk gets too close to the liquidation level.”
FieldTheory invites the public to check out and try Paloma bots. Paloma will continue to create more bots to provide automated solutions to all types of user needs.
Taariq chimes in on the usefulness of bots in crypto trading and the chance to win Paloma’s $1000 Sweepstakes:
“What I really liked about what you're sharing is that I do not have to trade to win a thousand dollars, I could just show up and start. I don't have to trade to make a thousand dollars, but if I do wish to trade now, I can essentially do all these types of TWAP orders, time-weighted orders on-chain, on Uniswap and PancakeSwap.”
He emphasizes that there are more DEXs coming and deployment to more chains.
“This means that there are more ways and more opportunities for people to come in and start a bot and win a thousand dollars.”
Taariq thanks FieldTheory, the Paloma community, and everyone who tuned in.
He invites everyone to come and try Paloma bots and join in the $1,000 sweepstakes. There is no need to buy tokens, no trading necessary, no purchase necessary, he assures.
”Right now we have 27 bots that have been created or started on Telegram. That means that we are just short of 73 to hit a hundred. And if you hit a hundred, you get a thousand dollars. That might be the easiest one grand that anyone can make in crypto.”
Paloma’s $ 1,000 sweepstakes will be shared more widely next week to invite more people to use Paloma.
“We're going to be telling the rest of the world and we're going to be really hammering on this so that we get more users into Paloma and more people curious about what bots do and we’re giving away free money.”
Stay tuned for the next AMA!
To find out more about Volume, check out Volume Finance (https://volume.finance/), join the Discord (https://discord.com/invite/Ebh6YjMShu), and follow us on Twitter (@Volumefi). Check out Paloma Chain on palomachain.com (https://www.palomachain.com/), follow them on Twitter (@palomachain), and join the flock on Discord (https://discord.com/invite/tNqkNHvVNc). Coo!