Maximizing Trading Efficiency on UZX Exchange with Automated Bots

WunderTrading

MAKE YOUR CRYPTO WORK

Launched in 2019, UZX is an interesting case of decentralized governance applied to a platform that operates just like any standard centralized platform by taking user funds into custody or offering leveraged derivatives by offering loans from its own reserves. While it is not a DEX, the existence of a DAO at the helm of operation is something that you rarely see in the world of CEXes. This unique feature alone makes this exchange stand out.

On the other hand, the absence of a functional API gateway is an issue of its own that prevents many investors from joining. It is close to impossible to imagine a contemporary strategy that does not involve using at least one automated trading bot for DCA. With over 65% of all retail traders using these advanced instruments in some capacity, it is unlikely that the DAO gimmick will bring enough people to the platform.

Why a UZX trading bot would be useful?

The DAO structure is established only to ensure that business practices are ethical and fair. The company is still managed by a team of international hires that operate much like any typical business and can be held accountable only periodically. This democratization may seem like a good idea but it prevents managers from making impactful decisions while at the same time reducing the incentives for them to perform up to the highest standards.

This managerial clumsiness leads to inefficient development where things like API are considered second-tier priorities preventing the platform from attracting even more users. Note that these interfaces can be used for many purposes. You don’t necessarily need to run a UZX bot. Some aggregators may use APIs to collect data directly from the platform or analyze the performance of certain platform-specific assets.

Here are some of the products offered by the platform:

  1. The spot market is quite deep. It offers access to a rich selection of digital assets paired against USDT, BTC, and ETH. It seems that the platform rarely experiences issues with liquidity indicating that it can be a viable target for HFT strategies, market-making robots, and statistical arbitrage systems. The issue here is that the exchange does not have the necessary functionality natively and does not offer an API.
  2. Derivatives are excellent financial instruments if you need to build a delta-neutral strategy or want to focus on hedging against market risks associated with other positions. UZX has several offerings including options contracts and the Second Future market. Again, automating some of these instruments could be a great approach to adding some diversity to your portfolio.
  3. Passive income projects are realized through the AssetValor module that enables investments in various tokens with a floating APY. It is an interesting investment avenue for some conservative investors who prefer keeping their risk profile low and focusing on consistency instead of trying to maximize profits.

A notable feature of the exchange is the decentralized autonomous organization governing the managerial structure and many other aspects of the platform. Investors can influence the development of the service by acquiring governance tokens and voting. These tokens give you some utility too as you will receive a portion of revenues generated by the exchange. It is an intriguing approach that seems to be working at the moment.

The biggest downside is the lack of automation features and the absence of API gateways. If you want to add some sophistication to your portfolio through the use of innovative instruments like an AI crypto trading bot or something else, you will be severely disappointed. The issue is that UZX trading automation does not exist as a concept at least in the current iteration of the platform.

Interestingly enough, anyone can apply to become a board member if they have the necessary credentials and experience. Some investors may consider joining the platform to try and shoot for the stars. Maybe you should do it too and propose a faster API gateway rollout.

Will there be a way to automate trading on UZX?

The roadmap of the project does not mention API functionality anywhere but there is an emphasis on potential technological upgrades coming in 2026 and after that. Throughout 2024 and 2025, the company is focusing on establishing a DeFi cross-chain bridge, increasing the size of the community, and focusing on interaction and transparency among other things. The true governance will also come only after 2026.

This particular timeline does not infuse us with any hope for a functional API gateway that would allow users to build fully autonomous trading systems. Right now, searching for the best bot for UZX is a futile endeavor due to the absence of any technology that can make it work.

However, it may be possible to use instruments like Gunbot that offer automation functionality that is compatible with Dapps. In some cases, you don’t even need to connect via API and may simply allow the bot to operate using your wallet address instead. Since the DeFi sector is not reliant on the speed of execution in the same manner as CeFi, it can be a viable automation option.

What kind of UZX exchange trading tools may be available in the future?

While we do not know much about the real plans of the management and DAO members, all contemporary exchanges have a strong incentive to encourage the use of automation since over 65% of all retail traders use it regularly for various purposes. For example, many believe that running a DCA bot crypto system is the easiest way of growing a portfolio consistently. All providers in the industry have this particular setup ready to go for any investor.

We believe that the platform will focus on building an API gateway or trying to roll out features native to the exchange to facilitate multiple types of strategies:

  • Distributed cost average is the most commonly suggested way of entering the crypto industry in all communities. Bitcoin enthusiasts are especially hopeful about this particular approach allowing investors to reduce the average acquisition price and increase potential gains. DCA is offered by the leaders of the automation sector including the likes of CryptoHopper, 3Commas, and WunderTrading.
  • Grid trading is another hugely popular system that relies on the same concept of entering market positions as DCA but places a separate exit order for each of them. Depending on the settings, it can behave much like a high-frequency trading strategy or a very systematic robot that acts only when market conditions are perfect. One of the trends in the industry is the enhancement of this robot type with artificial intelligence and machine learning.
  • Arbitrage bots. There are many kinds of arbitrage including triangular, Intra market, statistical, and more. Contemporary automation providers can create any system without any hassles. Many individual investors run complex systems with hundreds of bots without overpaying and wasting precious time on tracking every single minute event in the market. Platforms like UZX would greatly benefit from allowing users to employ such UZX automated trading strategies.

The development of the exchange is an ongoing process that started in 2024 and will continue through 2025 until a new wave of technological improvements becomes the top priority. It seems that the focus is on security and performance but it may change in the near future if the community is loud enough in expressing its desire for automation in at least some form.

The future of the exchange

The first stage of the roadmap has been successfully completed. The exchange underwent a security audit, issued its tokens, and created a stable platform. The current iteration of the platform is already working as intended and the team of international managers seems to be doing just fine. However, the lagging of technological development is concerning. The timeline just does not make sense considering the level of competition this ambitious project is facing.

All large international exchanges offer a variety of tools that make the life of an investor more convenient. Automation is such an important part of contemporary retail trading that imagining a future where some platforms do not allow users to run a GRID bot crypto system seems out of this world.

Nevertheless, the future of the platform looks bright with its strong focus on kickstarting Dapps, expanding the listings on the spot market, and building a robust digital infrastructure. We would only like to see more focus on technology and interconnectedness.

...

Next page