DeFi Tokenized Quantitative Algorithm Market-Maker ETH/USD at Bybit.
Holding the OvOa token you add stake to the bot and get 70% equity from the profits.
Token buys generate ETH that splits int 3 parts:
10% price increase
45% liquidity pool increase
45% sent to bybit, where the market-making algorithm generates profit (~0.5% per day)
Every day, the profit generated on Bybit is used to buyback the OvOa
Why It's different:
Standard DeFi projects get their profits from fees, liquidity services, lending, borrowing, or plain ponziness.
OvOa gets to profit from High-Frequency Trading and Fee Rebate-Farming from the crypto derivatives exchange Bybit.
This project is designed to evolve in an organic fashion, with low weight on a pretty site, heavy marketing and advertising, and high weight on intelligent alpha generation and capital management.
Where is the Value:
I believe that for anyone to win, somebody else needs to lose. With several hundreds of new DeFi projects around, it's close to a gamble to join a pure ponzi scheme or a fundamentally sounded project. The money-losing side that gives us the consistent alpha are the ETH/USD traders and algorithms that make mistakes.
95% of traders end up losing money and 99% of traders pay fees to the exchange. My market-making algorithm capitalizes on both. Offering liquidity services to the exchange and receiving 0.05% of our trading volume back.
Each new buy of OvOa in ETH on Uniswap generates three simple forces:
-> 10% price increase that rewards investors that entered before and hold the token
->45% pooled tokens that increase depth and liquidity
->45% ETH sent to Market-Maker Bot on Bybit.
Every day, the Bybit's Account buys back the OvOa tokens directly from the Uniswap pool. This increases the token price as a ratio of the bot's performance. This means your OvOa investment can increase in ETH value even if nobody buys at a higher price than you. (And OvOa price can increase in fiat value too if ETH fiat value doesn't keep going down faster than OvOa/ETH value rises.)
Why it's good for me
I want to get the maximum value I can while this Bybit profit-making window exists, so I opened the bot capital to investors to stake me in exchange for equity of 70% of the bots profit. It's also a great showcase for my API bots
The tokenization of the trading supersystem allows me to protect the intellectual property of the logic and indicators while allowing multiple investors to enter and exit with minimum bureaucracy.
The market-making nature of the bot supersystem creates a predictable and steady income. The Token will get value even if everyone decides to dump it. The system is antifragile as any sell creates another opportunity window for getting cheaper tokens.
The risk-reward of the market-making bot is better than API bots as I can have a better management system.
The Risk of exit firm or rug pulling is low not because you need to count on my honesty, but because it's simply more profitable for me in the long run to be honest.
Why it's so profitable
There is so much inefficiency on the crypto derivatives markets that is easy to generate alpha being quasi-delta neutral to it, just profiting on the volatility, generated by decentralization.
CEX farming generates more profits than DEX farming because of higher maximum rates (The algo can reach up to 100trades per minute on bybit vs 3 trades per minute on a very good flash swap or frontrunner bot on dex.
CEX derivative trading pays fewer fees. Instead of paying, we get negative 0.025% fee rebates on our trades, boosting the profits even more.
Leverage: we can borrow extra funds to boost our balance at specific times, adding safety and extra profits.
Shorting & stop-loss: at futures, we can trade short contracts, that the algorithm utilizes as a part of Take-profit and Stop-loss system.