1k investors + 7% Bonus Round + Unleashing our “Bot Army”

Published in

FrostFlakes

6 min readOct 5, 2022

We are celebrating this milestone with the release of a new liquidity source

Design credit to Gianni- our badass designer and FF investor from the beginning!

FrostFlakes is all about adapting to the needs of investors and the De-Fi market as a whole. We started as a “straightforward” immutable contract, migrated to a new contract that allowed us to add new features, and have been improving the investor experience and adding more liquidity sources ever since. Our north star has always been to increase the sustainability of our project, thereby reducing the overall risk to invest in it. What is the best way to increase sustainability, while providing 2% a day in rewards?

Generate new sources of liquidity.

Our liquidity sources

The first source of liquidity we created was the contract balance itself. The balance consisted of all deposits to the contract, minus fees. In Version 2 of our contract, we added a new source of liquidity: Pancake Swap (PCS), which we consider to be a low risk investment. Therefore, we began to stake 50% of every deposit on PCS, which earned rewards, and these rewards were compounded back into what was staked, thus earning more rewards. Our PCS liquidity is different than the contract balance in that it is able to grow due to compounding. So far, we have earned 44 BNB from rewards alone on PCS.

We are now introducing our third source of liquidity, which is our “Bot Army”. The Bot Army is higher risk than PCS, however unlike PCS, we are in full control of our bots, and they are proprietary to FrostFlakes.

Our Bot Army is now “live” and deployed on FrostFlakes !

How our Bot Army works:

For every deposit, 25% of it will go to the Bot Army, 25% will go to PCS, and 50% will go to the Contract Balance. The only difference here is that 50% used to go to PCS.
When the 25% allocation from each deposit reaches a total value of $1,200 in BNB, a new bot will be deployed, and use this $1,200 as starter equity for the bot to make trades from.
Every trade the bot makes is profitable — that is how our bots are configured. When a trade is executed, the profit goes back to that bot’s equity pool, thus increasing the total amount of equity available to make trades from. The result is that earnings from each bot are continuously compounded, 24/7, so the average return from a bot becomes applied to ever-growing equity.
Since each bot can only make profitable trades, there is potential for a bot to “stall”, where it “waits” for the price of the traded token to increase enough for the bot to execute a trade. This can become problematic if the token price rapidly tanks and does not recover for weeks. It should be noted that it is very likely no bots stall.
To offset any potential stalling periods, we will have multiple bots running simultaneously. With an “army” of bots running simultaneously, the likelihood of multiple bots stalling simultaneously greatly reduces, and it allows our bots to earn even if some are stalled.
As stated above, a new bot is deployed every time $1,200 is reached in BNB equity. This is effectively dollar cost averaging (DCA) our bots, provides redundancy while offsetting any potentially stalled bots, and is what enables us to have a “Bot Army”.
Overall, our Bot Army diversifies our risk amongst bots, enables us to always be earning, always compounding, and of course, growing our liquidity.

Are our bots AI?

No, they are not. AI bots would mean that they “learn from themselves”, which would require them to be extremely “intelligent”. As “sexy” as this may sound, this is not necessary, reliable, nor is what we actually want to do. If we were to deploy bots based on AI, it would make the performance of the bots extremely risky and unreliable as we would have to rely on their own “intelligence” to earn profit. It is better that we configure our bots, making them adaptive to the market, by using our own proprietary scripting, variables, and indicators.

Why the need for all of the above explanation? People think of “AI” when they think of “bots”, and have referred to and questioned if our bots are “AI”. They are not, but they are very smart. We are simply clearing the misconception.

What are our expected returns?

We have been testing our bots and the return rate has fallen between .5% to 5% per week. Generally, returns will be better in bull markets, and lower in bear markets, which we are currently in.

We can not promise a given return. The bots do as they are told, and are subject to market conditions, black swan events, and the unknown. We have taken precautions to make our bots as profitable as possible, and will continue to monitor them throughout their time in the market.

Risk profile of our bots

Each individual bot is capable of withstanding a traded asset’s price drop of roughly 70% within a few weeks. This is very rare.

Our bots are configured to execute trades without leverage or margin and are designed to be “conservative” on their own. There will be no situation when trades are liquidated due to a certain leverage level being reached, so there will be no “unplanned” liquidation events due to a certain loss level. Trades only execute if profitable.

In addition, we will deploy new bots regularly (Bot Army), effectively DCAing our bots in the market, thus enabling us to diversify our trading, providing us coverage and exposure, and making it so we never rely on any single bot’s performance. We will have dozens of bots running simultaneously.

The riskiest situation our bots will face is when we have multiple bots “stalling” and waiting for the price of the traded asset to recover, in order to complete the trade.

Our history with bots

Jack, our trusted developer and founder, has been working and testing this bot strategy for the better part of five years. He did not just decide to “make a bot” over the last month.

When is the Bot Army going live?

They already are!

Will trades be published?

Yes, they will be, but not immediately. We have prioritized getting the bots live and generating liquidity, and making this visible on our health chart first and foremost. We will make the trading history of the bots transparent like everything else we have done for FrostFlakes liquidity options. Some ideas on how we intend to publish our trades: to start, a Google sheet of all published trades, and possibly a live YouTube stream of all the trades happening in real time.

Bonus Round

As we are celebrating hitting 1k investors and the roll-out of our Bot Army, we are holding a 7% bonus on all deposits and received airdrops for 24 hours, starting on Thursday, October 6th, at 1pm PST.