When Ethereum was proposed in 2015 a small community of investors and builders already knew about its potential - it was called The World Computer for a reason. But nobody could have foreseen both the challenges that the platform is facing (mainly around scaling and governance) and the sheer creativity of developers that are quickly turning Ethereum into The World Financial Computer as we speak.
The key reason for why innovation on Ethereum increases its pace is because it enforces standard interfaces. Unlike the walled gardens of legacy financial providers such as banks, or the walled gardens of smartphone apps that can't talk to each other, Ethereum developers are creating protocols that can be combined in new and creative ways.
As we get closer to getting Atomic Arbitrage integrated into Saturn Protocol (read more about what it is and why it is a huge milestone for our exchange, for SATURN token holders and for the whole Ethereum ecosystem below), we'd like to share our plans on how we will combine Atomic Arbitrage and Ethereum Dev Kit to create a new feature on Saturn Exchange platform: Tokenized Trading Bots.
- Earn ETH by simply holding a token - provide liquidity to the trading bot and the smart contracts ensure trading bot's profits get fairly distributed to token holders.
- ERC20 and ERC223 interface - compatible with every Ethereum wallet and block explorer.
- Can be used for any trading strategies - trading signals come from an off-chain trading oracle that can use any strategy: swing trading, automated technical analysis, AI strategies.
- Liquid investment - you can buy into the strategy or take your profits and leave at any time.
How It Works
In order to successfully operate Tokenized trading bots need to have the following ingredients.
- Liquid markets - there's plenty of liquidity for major tokens on decentralized exchanges, and soon all that liquidity will be accessible to Saturn Network users via Atomic Arbitrage!
- Trading strategies - volatile markets are ripe for exploitation. We routinely explore the market to find trends and statistical arbitrage opportunities.
- Smart contracts & trading oracles - the infrastructure needed to pool funds, execute trading signals and share profits, which will be easy to build once we've completed our work on Ethereum Dev Kit.
You can expect us to release the first tokenized trading bots shortly after we hit the necessary funding milestones for Ethereum Dev Kit and Atomic Arbitrage.
How we think it will evolve
While getting this technology from our labs and into the wide world is an accomplishment in and of itself, it is important to have future development vector in mind.
Obviously, since it's yet another protocol based on a widely adopted token standard, we cannot even imagine what the community will build with it. Here are some of our ideas that we'd like to explore going forward.
- Decentralized oracles - in order to get the technology off the ground we'll run the first trading oracles built on popular trading strategies. It would then be an interesting exercise to decentralize the trading signals oracles, either through a custom solution or maybe using ChainLink?
- Trading DAOs - use wisdom of the crowd to generate profitable trading strategies. A member of a trading DAO may propose a trade, and if it passes the vote the trade gets executed on Saturn Protocol via Atomic Arbitrage at the best price possible.
- AI trading strategies - instead of high volume, low frequency trading strategies like most Technical Analysis strategies suggest, perhaps one could utilize machine learning techniques and plethora of data feeds (social media sentiment, order book analysis, press release monitoring) to come up with profitable high frequency trading strategies and tokenize them.
- Trading bot marketplace - our Ethereum Dev Kit will teach developers how to tokenize their trading bots, and it would be a great idea to create a platform for those developers to showcase their strategy and advertise to investors.
Read more about Saturn Protocol V2 below, an upcoming major exchange protocol upgrade which will bring token to token pairs, automatic market making, DAO activation, dividends payouts and much more!