Paloma
Last updated
Last updated
Paloma is a Cosmos SDK chain designed for the fastest possible cross-chain instruction execution. Paloma is cross-chain smart contract control. Paloma provides the world's first intelligently scheduled and automated smart contract transaction execution for the Cosmos ecosystem. The protocol allows developer to remotely control any smart contract instructions on any other target chain with minimal trust requirements.
Palomabot.ai is a set of cryptobots running on the Cosmos-SDK L1 blockchain and appchain known as Paloma. Palomabot utilizes Paloma blockchain validators configured to store liquidity and automatically execute user transactions at specified times and with MEV protection in destination chains including ETHEREUM, BSC, MATIC, OPTIMISM, BASE, GNOSIS, ARBITRUM, BLAST. Palomabot protects users from centrally controlled cryptobot liquidity tools that can disable users at any time. Reducing the risk of liquidity loss is the foundation of Palomabot.ai
Essentially Paloma took a trading bot from the Web2 world and enhanced it using classic Web 3 pros like security, decentralization, scalability.
Optimization of private key storage
In 2023 alone, over $300 million dollars of liquidity was lost due to private key hacks. This number does not include the loss of funds on the Multichain bridge worth over $130 million dollars, which was protected by MPC cryptography and more than 11 professional audits. Palomabot is the answer to the risk of loss thanks to the Paloma validator blockchain. Palomabot's security model depends on the security guarantees of the Paloma network validator set. The Paloma validator set is built on top of the Cosmos-SDK and ComeBFT consensus layer, where over 40 validators have made significant fixed and variable investments to maintain network uptime, as well as an acquired stake. This means that Palomabot's control over private keys and liquidity in the EVM network is the most advanced security model possible in decentralized systems today. Paloma validators can be easily identified and verified here: https://paloma.explorers.guru/validators. All Palomabot.ai transactions are signed by the entire set of Paloma validators, regardless of steak size. Palomoa validators receive key control commands to execute transactions on behalf of users storing liquidity on various networks. Paloma currently supports liquidity storage and transaction execution in ETHEREUM, BSC, MATIC, OPTIMISM, BASE, GNOSIS, ARBITRUM, and BLAST. As a result, Palomabot users scheduling AMM transactions on these networks interact with Paloma validators configured to receive instructions, reach consensus on the authenticity of those instructions, and then execute those instructions. The team that developed Palomabot does not have any access to control the liquidity of the bot's users.
Once a user transfers funds into the Cryptobot, their funds are controlled by validators whose actions are transparent and easily verifiable. Validators provide decentralized control over private keys and use a publicly verifiable security model.
Reducing risks for users
Palomabot.ai orders are stored on the network in Cosmwasm contracts, which are only readable by an authorized contract bot that collects users' trading positions. Paloma pigeons (as validators are called on the network) execute these orders using dedicated MEV endpoints that allow user orders to be included in packets and sent to the blockchain. Paloma validators also receive orders based on their performance for routing messages. In this way, palomabot transaction messages are delivered to validators, which process the messages in the best way possible and deliver them through their dedicated MEV endpoints. Paloma validators can claim commission income for sending these messages and use this as an incentive to reject users' pre-orders (this is how MEV - protection is reflagged).
Allows to avoid the risk of non-execution of orders
When markets crash, it is critical to quickly execute a stop-loss. A stop-loss is executed when the market price falls below a certain level. The user will sell the token they own for another token, such as a stablecoin like USDT or USDC, when the stop-loss is reached. The purpose of the stop-loss is to prevent the portfolio from losing value. Bots with centralized orders offer no guarantee that stop-loss orders will be dispatched on demand or users' schedules. Again, the centralized nature of most cryptobots means that some bots may not meet minimum order execution rates.
Palomabot order execution is performed by a set of Paloma validators. Since validators are disinterested message relayers, their goal is to successfully send as many MEV messages as possible. Paloma validators, known as pigeons, can retrieve messages for relaying based on data from their previous message delivery performance metrics. Thus, validators that fail to successfully deliver messages cannot compete for messages as effectively as validators that have a high rate of successful message delivery. Paloma avoids the risk of unexecuted orders and decentralizes this process to over 40 data centers in the network. In a centralized cryptobot, there is only one order execution service provider. This means that if this provider fails, users have no recourse. Palomabot avoids order fulfillment risk by distributing and incentivizing order delivery using a set of Paloma validators.
transparency
Palomabot avoids fraud because the validators holding the funds cannot take the funds and abscond with them without the collusion of the majority of validators in the network. Paloma's validators consist of a scattered group of business operators around the world who have invested significant time and money in securing the Paloma network. The more transactions the Paloma network receives, the more valuable the network is and the greater the demand for the Paloma $GRAIN token, which is used to pay for relaying messages. This security model and economic incentive means that Paloma is unlikely to suffer an outflow of funds from Palomabot.
The validators in the Paloma network are called Pigeons.
You can find a list of validators at https://paloma.explorers.guru/validators.
Decentralized trading bots on the blockchain that will automatically enter and exit your positions. All bots run on the Paloma blockchain. Security is provided by the Paloma validator suite.
Here is an example of some of the trading bots offered by Paloma:
Trading Bots
Trading bots are market making applications that allow complex orders to be created on any AMM blockchain with the lowest slippage and gas costs:
Curve TWAP Bot (https://www.palomabot.ai/curve-twap/)
Uniswap V2 TWAP (https://www.palomabot.ai/uniswapv2-twap/)
Sniping Bots
Scan decentralized exchange transactions in real time. Use Palomabot to automatically create criteria for entering and exiting positions:Gecko Top Gainers Bot https://www.palomabot.ai/gecko-ai/
Paloma Momentum Bot https://www.palomabot.ai/momentum/
Lending Bots
Automate digital asset lending, borrowing, collateral maintenance and loan repayment across multiple blockchains.
Curve Lending Bot https://www.palomabot.ai/curve-lending/
The full list of trading bots, which is constantly updated, can be found on the page https://www.palomabot.ai/.
There are three main use cases for GRAIN tokens:
ensuring the security of the Paloma Cosmos-SDK network;
Medium or Exchange (MOE) to pay for secure relay services provided by Paloma Pigeons on destination networks supported by the Authority;
governance token.
The project believes that steakage revenue will not be the primary revenue opportunity in Paloma, and the goal is for retransmission revenue to be greater than steakage revenue.
Paloma's $GRAIN token is used to pay for message delivery fees. Thus, the token must meet the organic demand for message relaying. Any significant volatility in the GRAIN token will result in a decrease in demand for message relaying. It is in the interest of validators to ensure that the price of the GRAIN token is not volatile and that prices remain low enough to support continued buying activity for message relaying. Thus, validators prefer that GRAIN token prices remain low and that the volume of retransmission executions remains high. The GRAIN token that secures the Paloma network and has little interest in pamp or dump due to the nature of its tokenomics, generating revenue from bot message fulfillment.
Relay message buying activity will be based on the validator's pricing relative to the destination network gas valuation.
Validators may set any price as a % of destination network gas at their discretion.
The Project seeks to create a competitive market for validators seeking to collect as many relators as possible to generate the most revenue.
Thus, validators are expected to compete to generate the most revenue rather than maintain a high fee for fewer relays.
The mechanism used to incentivize lower prices by validators is called the Pigeon Feed.
Low GRAIN prices for Gas relay will be a distinct property of the network as more validators recognize the revenue opportunity on the network and join for validation and retransmission.
Validators that collude to raise prices will be displaced by new validators charging less.
The validators with the lowest fees receive messages first.
Security:
The token has an inflation factor that will be enabled by management after 1 month of TGE. Inflation is 7% and drops to 3% when the stake reaches 66%.
The rate issue is total inflation. So total GRAINs are growing at 7% per year.
The $GRAIN token will be listed on 7 EVM chanes.
Token exchanges can be conducted on the project's own platform https://www.palomaswap.com.
Paloma has developed a wallet application for the Paloma Nest browser.
This is a BETA application that will be updated to expand functionality. As of now, the following functionality is stated:
- Creating a new wallet;
- View wallet balance;
- View account activity;
- Sending native Paloma tokens to other addresses;
- Receive native test tokens;
- Importing or exporting existing wallets;
- Claim GRAIN Tokenback rewards.
The project has raised from funds and angels such as:
New Form Ventures ;
NGC Ventures;
Michael Egorov - Curve ;
Figment Capital;
TRGC;
Hustle Fund;
Anatoly Yakovenko - Co-Founder, Solana;
Advanced Blockchain Group.
The Paloma blockchain and its dapp, Palomabot.ai, is a new option for decentralized storage and automated execution. Paloma's validator suite provides assurance that the private keys of trading bot users are not controlled by bot creators. Palomabots' economic interests reduce the risk of mat pulling as well as the risk of token spillage, as validators want to be paid for order execution performance and privacy.
1. Docs (https://docs.palomachain.com/)
2. Discord (https://discord.com/invite/9AYDBXQYRv)
3. Forum (https://forum.palomachain.com/)
4. Blog (https://www.palomachain.com/blog/)
5. GitHub (https://github.com/palomachain)
