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Arnaud Deblander
Aug 2, 2022 10:00 PM

What are the Vaults of SuperBots about? And how do they work?

If you follow our blog, you know that we have already discussed how SuperBots vaults can be useful to counter the bear market. However, we still get a lot of questions about how they work and that's why today we're going to go into more detail.

What are the differences between Upbots and SuperBots, and how do the performance fees work as well as the strategies used and the security? You'll find out everything in this article. 

Are you ready for it? Let's get started!

Upbots and SuperBots

Upbots

Upbots is first and foremost an algorithm rental platform. This is where the performance fees mentioned above come into play. Activating a bot on the platform is free, but users must purchase UBXT to pay these fees.

Upbots is also a manual trading platform that allows users to place orders directly without having to connect to an exchange platform. There are several exchanges available and they have recently added the ability to connect to a futures exchange which allows users to go both ways - long and short.

Upbots is also an ecosystem, with its own token, UBXT. This token is used by users to pay "commissions" (i.e. performance fees) for successful trades only. Users of the platform can also stake it on the UpBots interface to generate passive crypto-currency revenue.

SuperBots

Although the major feature of SuperBots is to offer an automatic trading solution, it is not the same as UpBots at all. On Upbots, everything is done on centralized trading platforms such as Binance, Kucoin, or even FTX. 

On SuperBots, the focus is on decentralization, Web 3.0, and DeFi, and trades are therefore done on decentralized exchange platforms, for the moment on the BSC blockchain, with plans to add other blockchains as well. 

But SuperBots, unlike Upbots which is somewhat limited to being a trading platform, is much more than that. SuperBots is a true Web 3.0 platform that already has its ground in the Metaverse, but more on that later. A collection of NFTs will be released soon too!

What are the benefits of SuperBots?

You've all heard about performance fees, right? Just like UpBots, SuperBots’ model is also based on performance fees but unlike some other practices, this is not calculated after one month but after each trade.

To put it simply, if the trade result is positive and you are in real profit on your capital, you will pay performance fees. If the algorithm is in drawdown (these are rare on SuperBots but it can happen) you will not pay any fees until your capital is in profit again.

What are vaults and how do I choose them?

The SuperBots’ Vaults work with two currencies, the base currency and the quote currency. For one of the vaults, WT BNB V2 for example, the base currency is the BNB and the quote currency is the BUSD. Each vault represents a different trading strategy on a different currency pair. Here the vault represents the WT V2 strategy on the BNB/BUSD pair.

To start using a vault, it's very simple, you must first connect your metamask wallet to the SuperBots application. Once this is done, you can then deposit funds into the vault of your choice using either the base currency, BNB, or the quote currency, BUSD.

Each vault is powered by a Smart Contract that handles the automation of calculations and payment of performance and trading fees. In the not-so-distant future, SuperBots will be launching the Super Vault—a vault that monitors the best performing vaults and will automatically help to rebalance your portfolio on a weekly basis. 

How do I choose the right vault?

This is a great question and requires some personal reflection! The easiest answer would be to simply recommend the one with the highest absolute return, but it's a little bit more complicated than that. As with every investment, the choice of a vault will depend on your risk appetite and the risk/return trade-off.

On SuperBots we can analyze the risk using the maximum drawdown. If you are comfortable with a 7% drawdown, we would recommend WT BNB V2, our best-performing vaults. If you prefer a strategy with a lower drawdown, then we would refer you to Ultimate Scalper V2 which has a drawdown of just 1.28%.

The best solution when you have a larger capital of $10,000 and above, is still to diversify between several vaults. As they say—don’t put all your eggs in one basket. It would be wise to split your capital between two to three vaults. 

Are the vaults safe?

We had already done a smart contract audit at the very beginning of the launch of the project for our vaults. Then we set up a bug bounty with ImmuneFi, which has not been activated yet. Finally, we decided to have the solidity code of our vaults audited once again to make sure there are no flaws!

As the saying goes: “Verify, don’t trust”. All the smart contracts security audit reports are publicly available for all to check for ultimate transparency. You can find them here

Conclusion

The vaults of SuperBots are your ultimate choice to fight the bear market and come out winning! There is no bear market without some relief pump, and SuperBots’ strategies are there to take advantage of that!

The above is a comprehensive explanation of the SuperBots’ vaults. Have more questions? Take a look at some of the most commonly asked questions here

Take on your best crypto trades without stress and emotions with SuperBots