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SuperBots – A Case for Imminent Decentralization amid Recent CEX Failures
Crypto trading took the back seat in the digital economy in 2023, with the market remaining under bear control for most of the year. Furthermore, traders have seen their faith rocked by the consecutive failures of centralized exchanges.
These intermediary marketplaces have been the powerhouse of the industry since its humble beginnings. Unfortunately, they seem to crumble under mounting allegations of scams, lawsuits, and solvency concerns. Meanwhile, they make a convincing case for the imminent decentralization of crypto trading.
FTX is one of the biggest CEX brands to join the list of centralized trading debacles. In early November 2022, the exchange collapsed following a CoinDesk report discussing potential leverage and liquidity worries regarding trading firm Alameda Research. Consequently, it announced a liquidity crisis, and its valuation plunged from $32 billion to bankruptcy in only a few days. To make matters worse, FTX lost hundreds of millions of tokens soon after.
The case left thousands of customers unable to withdraw funds due to FTX’s solvency issues. The Bahamas securities regulator also froze the exchange’s assets and subsidiaries. But, most importantly, it shows the age of centralized trading is impedingly closing and ushering in a decentralized economy. In this article, we discuss why that is the case with the example of SuperBots spearheading this transition.
Why is Decentralized Trading the Future?
Decentralized trading occurs on peer-to-peer marketplaces, also known as decentralized exchanges (DEXs), and allows people to transact cryptocurrencies directly without intermediaries. These transactions are possible thanks to self-executing smart contracts and electronically coded agreements.
On the other hand, centralized exchanges (CEXs) bridge the gap between customers and their transaction goals and charge anyone crossing them. Furthermore, they are owned and operated by private companies, which pose a substantial risk, as the FTX debacle proved.
Recent CEX failures have shed a brighter light on the many risks of centralized trading. Fortunately, decentralized exchanges provide a suitable and safer alternative, setting the standard for the future of crypto trading. Here are a few reasons why:
Unlike centralized exchanges, DEXs do not require central authorities or custodians to manage, handle, or authorize transactions. Instead, traders use personal external wallets to transact directly with the DEX. As a result, they maintain complete control over their wallets’ private keys, ensuring increased security for their funds.
Besides security liabilities, centralized exchanges are also costlier than decentralized trading. This is because their intermediary commission generally adds to the gas fees every blockchain transaction demands. Conversely, DEXs use self-executing smart contracts operating on a minimal gas fee structure, drastically reducing transaction costs.
Users retain complete control over their private keys and personal data when using decentralized exchanges. Typically, these platforms do not require traders to undergo KYC and AML procedures, unlike CEXs. While these procedures may help reduce fraud and money laundering, they could represent a risk of leaking sensitive user information to malicious entities. As a result, DEX provides a precious service in the crypto industry – which centralized exchanges cannot offer – anonymous trading.
Earlier Access to New Tokens
Centralized exchanges must go through a long and arduous process to comply with various regulations before listing new tokens. This deters many new projects from opting for CEXs when launching their tokens. Also, it means traders get access to already popular assets later than on decentralized exchanges.
DEXs can list new tokens minted on their blockchains of origin. As a result, new projects prefer using them to CEXs, and users gain early access to potentially profitable token deals.
All these benefits give DeFi trading the edge over increasingly problematic centralized exchanges. And yes, decentralized exchanges could be better. Smart contracts may encounter vulnerabilities, and unvetted token listings pose a considerable risk of fraud. Still, a DEX can be a safer and more lucrative trading venue for informed and prepared traders than most CEXs.
How SuperBots Provides DEX Benefits with Minimal Risks
SuperBots is a DeFi protocol that delivers decentralized trading with all its advantages for new and expert traders. The platform stands out from the competition thanks to its no-fees policy on deposits and withdrawals. Instead, it charges performance fees only if and when the users’ trades are profitable.
Unlike centralized exchanges, SuperBots gives users more power over their accounts, wallets, trading strategies, and tools. Furthermore, it allows them to automate their trades on decentralized finance depending on their specific trading strategy or market of choice.
The platform’s high-performance vaults operate 24/7, allowing users to trade according to schedule and in a maximum security environment. Moreover, it welcomes all traders, regardless of skill or experience, to trade whenever they please through automated strategies.
Another great thing about SuperBots is that users don’t have to create accounts on the platform. Instead, they can connect their wallets via MetaMask and start trading on the spot. Also, it provides important learning resources through its educational series, including extensive documentation, a blog, and an FAQ section on the website. This way, anyone can start trading from a basic level and rely on extensive DeFi trading knowledge for an increasingly better reward.
Lastly, all trades are 100% blockchain-based, audited, and secured by Solidproof and Immunefi. The latter are two of the industry’s leading audit and security providers.
SuperBots’ Algorithmic Trading Vaults
SuperBots takes automatic DeFi trading to the next level with its trading vaults. These pools allow users to lock their capital and leave the trading algorithms to do the work for them. Investors collectively share the pool they fund and receive xUBXT tokens for their contribution. They can also transfer these tokens and allow other wallets to withdraw capital.
Each vault uses a specific algorithm, enabling users to choose the one that best fits their trading strategy. Most importantly, SuperBots do not own the algorithms and do not take responsibility for them. Instead, third parties provide the algorithms and earn every time traders profit from them.
SuperBots vaults rely on performance fees, which they take only from lucrative trades. Each vault converts 15% of the profit into UBXT tokens and redistributes it to the staking pool, the algorithm’s developer, and the platform. However, the system will not charge fees if there is no profit.
Since SuperBots users can deposit funds directly from their crypto wallets, they have complete control over their capital. This way, they engage in decentralized trading without risking losing their money to third parties, as with centralized exchanges.
Decentralized trading is the future for crypto enthusiasts, regardless of experience and skill. SuperBots provides a lucrative way of trading crypto with all the benefits of a DEX. Above all, it drastically reduces the risks that CEXs pose.
The protocol’s first version launched in March 2022 with seven vaults. The project has evolved rapidly ever since, according to its ambitious roadmap. One of its immediate plans is to introduce leveraged trading to accelerate the transition to the decentralized era.
You can learn more about SuperBots by following the links below: Website | Twitter | LinkedIn | Facebook | Discord.