VELOX — DEXTools Community AMA
Text Transcript Of AMA — January 3, 2021
DEXTools: Hi DEXTools Community, we are glad to introduce you one of our recent partners and an amazing project which you will be able to try very soon at our App. Borned from DEXT Force members, I am happy to make this AMA with Velox Team.
Velox: Hey @FredericDEXT Thanks for having us!
DEXTools: Glad to have you here boys. So, tell our community, what exactly is Velox?
Velox: Velox is a token-free algorithmic bot trading system. In other words, Velox will allow traders to establish ERC20 trading positions which are executed instantaneously by out trading software aka “bot.”
DEXTools: That’s very interesting. So why no token? And aren’t your trading positions basically limit orders?
Velox: Those are very common questions for us. We decided to launch without a token for two main reasons. First, to allow our platform to speak for itself. You’ll see many projects that will sell a token and need 3–4 months to develop a semi-functional-system.
Velox: Secondly we wanted to make things simple. For a trading system to work smoothly it needs to be used effortlessly. We thoughts that adding another layer on top of Velox would make things unnecessarily hazy for our users.
DEXTools: I fully agree with that, starting with an MVP is very important in these times.
Velox: Our platform actually encompasses far more than limit orders. Limit orders are only one facet of everything that a trader can do. With Velox you can establish limit orders, stop-loss orders, channel breakout buys, and a multitude of other strategies. We are going to release a Trading Strategies Booklet which will teach users what to look for when making these positions.
DEXTools: It will be amazing to see it working
DEXTools: So Velox will teach users how to establish strategies and help them execute these positions. Why should DeFi traders use Velox over another trading platform?
Velox: The number one answer is simple: Because Velox works. Our website has said that Velox executes with over 99% efficiency. That’s not “marketing b.s.” but the actual completion rate for our bot. No one else on the market can tout that kind of success. Beyond this, using Velox can actually save traders more money than if they were trading directly through a DEX.
DEXTools: That’s an impressive efficiency
DEXTools: We have discussed how Velox can save traders on fees. Can you please elaborate?
Velox: In DeFi trading there are three main areas where your average trader will lose money: Gas, Slippage, and Front-Ran Orders. Velox solves all three of these for its users. By actively watching the blockchain, Velox can instantaneously recognize when an orders parameters have been met it will then look at the blockchain and efficiently calculate exactly how much gas is required for the user’s position to execute in the very next block.
DEXTools: Front running bots are a plague these days, as we can see at DEXT app.
Velox: Velox will also look at the price impact of buys/sells and calculate how much slippage is required to execute the order. In most cases, this is close to 0% slippage. That means it could be cheaper to run an order through Velox than directly through the Uniswap UI.
Velox: As far as front running goes, Velox will stay aware of existing orders within the blockchain and set gas to execute before anyone else has. This way you have better protection from being front ran.
DEXTools: That’s a huge help for our traders. This is part of the reason why we wanted DEXTools to work with Velox. A large part of our mission is to prevent people from losing their money to scams or bots. You’re helping them with the trading side of things.
Velox: Exactly, one of the great things about Velox is how well the tools work with what DEXT has to offer. Strong data and a strong trading system give traders a better edge than ever before.
DEXTools: Yeah, that’s exactly what DEXT team think too. Well ,I am sure there are a ton of questions lined up by our community members, so we’re going to open up the chat. The rest of the Velox team will be answering these as they come. Thank you @Kronos for your time and best of luck with the launch this month!
Community: In Velox what is the medium or % earning when buying and selling? Or what is a good amount of ether to really make the bots work and earn?
Velox: It really depends my friend, it will depend on the position that you are in and when you entered. The actual costs associated with the platform will not be prohibitive to even smaller positions especially when you factor in that our slippage execution is generally less than 0.02% which is incredibly low and offsets any fees generally in the transaction using Velox. One thing that we cannot get around of course is the price of gas. We will optimize it to the absolute minimum that has to happen to make the transaction succeed, but the network controls the gas fees. In theory, you could use Velox for all position sizes that you normally trade with, without much concern, if gas is a concern there is a way to limit the exposure to gas fees (but it would mean that transactions would not happen if the network fee was higher than that at that point).
Community: What will the connection between Velox and Dextools be?
Velox: As far as integration is concerned, Velox will initially be included for subscription, standard, and premium users via an iframe. It is also available without the DEXT discount at Velox.Global
Community: According to website, the bots are sold out? When will they be available?
Velox: Not sold out, there is no stock or limit on quantity of bots. Each basic or premium user gets to use the bot and can create their own strategies for it.
Community: How’s the custody regarding the funds? Are they stored in our personal wallets?
Velox: Yep, you have to approve our Velox smart contract so that the bot can use your funds for the trades you wish to execute. So Velox doesn’t take any custody of your funds, all trading is based on using smart contract and execution when the conditions of the trade are valid.
Community: On your website I read that you would only charge a certain % as fees per trade, are they any additional subscription fees?
Velox: None what so ever. You will only pay the transaction fee per trade once the trade has executed. Probably good to clarify that there is always ETH transaction fees on Ethereum network which also need to be paid, so this is not free from that either.
Community: So Velox bot will operate within the Dextools app? And will Velox directly interact with blockchain so really no exchange is needed? Sorry, this part was confusing me.
Velox: We do trading on Uniswap and SushiSwap to begin with, it’s up to the user to define which one and what tokens & the rest of it. Users create strategies using Velox, and it does the rest.
Community: What’s subscription, standard, and premium users? Can only the DEXT members access it or anyone can?
Velox: Anyone can access the bot through Velox.Global when it’s released. The DEXT users will recieve a 25% discount on the 0.3% transaction fee when it’s accessed through the DEXT iframe.
Velox: o build on this answer from Hannu above. Velox will operate inside of the DEXTools app with a 25% discount off trading fees for all DEXT subscribers and standard and premium holders. It does interact directly with the contracts of the AMMs meaning no exchange is needed in addition to the velox interface (but understand that it does in fact use the AMM of the exchange).
Community: Will the bot work with hundreds or even thousands of users? Right now we see “botwars” on Uniswap. Do you think that will be a problem?
Velox: Yep, it works with a lot of users. But in the end it comes down to the amount of strategies each user creates, as our backend network needs to check each on every block. We are not fighting with bots as per trying to front-run others in order to sandwich transactions.
Velox: So regarding the gas wars; this is something which happens when bots try to front-run each others transactions. We don’t try to do this, we monitor mempool for optimal gas pricing to get the transaction done successfully but none of the transactions are designed to be profiting from the front running.
Velox: Our server structure is quite mind blowing (over 1M USD to replicate the infrastructure) can handle more transactions that can feasibly be entered at the moment. The limitiation is of course if thousands of people want to sell the same token at the same price exactly. As you can imagine thats not actually possible with an amm the way they are structured. We have ways of handling those situations but the risk of too many users is very small given the current size of the DEX space.
Community: Do you have any plans to add sniping bots in the future?
Velox: Down the road we can incorporate any conditions and features. It all depends on market demand and scalability.
Community: Have you done any audits yet?
Velox: Velox functions much different than you are likely expecting. You in fact do not have to deposit any assets to a smart contract or anything like that. There is a smart contract, but its very simple and just allows permission on your wallet the same way uniswap does to execute trades that you identify in the UI. Its very simple and provides near 0 risk to the user (I say near 0 as with technology there is never 0 risk).
Community: How long did it take you guys to test and fine tune the algos to reach current product phase? Not measuring in blocks, but in days/weeks?
Velox: We have been operating the bots for over 4 months testing a myriad of structures, logic, conditions and strategies (much more sophisticated logic has been used and can be used of course). In the most recent months the focus was on scalability and server structure.
Community: Understanding that the team can’t reveal too much of the roadmap, could you share some of the medium to long term goals of Velox? Support for more DEXs, or possibly even multichain support?
Velox: Great questions my friend, we are launching with support for Uniswap and SushiSwap as we wanted to display the versatility of the platform for launch. We are working on infrastructure for other DEX platforms and chains in the future, yes sir. Be sure to stay tuned for announcements in this regard.
Community: How does Velox stand against TBB?
Velox: We’re not going to get into a direct comparison, but am happy to discuss the features of Velox that are critical for the platforms efficiency, and we believe significantly differentiate us in the market place.
1) Ease of use — we manage everything server-side, and your assets don’t leave your wallet until the transaction is executed.
2) No contract deposits — this is relatively self explanatory I believe
3) Institutional grade infrastructure — I mentioned this in the AMA but we have a system that would be extremely expensive to replicate. Our motive here was to create near 0 (1ms) latency in our queries and execution. We have servers in multiple data centers that we own ourselves which creates an incredible amount of redundancy. We have more nodes running than you can think to be able to uninterrupted data feeds and server activities in a multitude of unexpected circumstances.
4) No down time — as we have our infrastructure spread on continents and in state of the art data centers, we have no concerns of power outages, connection interruptions and the like
5) User interface — as nacho mentioned above, our interface is designed to look and feel as simple as trading on a DEX (cause it is), and there is no learning curve to use the platform effectively
6) Barrier to entry — no token, no deposits, no downloads, no bullshit 😉
7) Order fulfillment — We have strategic ways to not only ensure the lowest possible gas and near 0 slippage for transactions, we also have structures in place to get the orders to the mining network in extraordinary and efficient means.
Trading on AMMs and DEXs on the ETH network is never going to be perfect due to the nature of the execution. We have been in the space for a long time, have been working on infrastructure related to Ethereum for a long time as well, and built this accordingly. The goal here was to get the most efficient, predictable, and intuitive platform technologically possible to aid in effective trading on Decentralized exchanges. You will see even more representation of this as we expand our functionality and interface very soon after our initial launch 😉
DEXTools: We had some interesting questions here, and you answered very well. Ok guys, AMA is finished.
Velox: Thanks so much to DEXTools for hosting us for the AMA, we will be available for additional questions any time here in the DEXTools channel or in the Velox TG, so don’t be shy if you have more things you would like to ask.
For more information or questions, please visit the VELOX GLOBAL COMMUNITY channel on Telegram at https://t.me/veloxglobal