1 min read

Guaranteed profit

Transaction costs are variable. That's why gas fees on Ethereum can sometimes cost hundreds of dollars for simple actions. Worse, you can't know exactly how much a transaction will cost until it's already completed. Even if you figure out how much gas a transaction will cost, the price of gas could spike right as you submit your transaction.

This makes it challenging to consistently generate profit on blockchain. Even the best MEV bots will lose money some of the time.

That unpredictable cost is unfortunately necessary. However, it doesn't necessarily have to be paid with money.

Koinos's mana system pays the transaction cost by locking your Koin in your wallet instead of taking the Koin away entirely. This gas alternative means your real costs are actually known before you submit any transaction. Sure, chasing an opportunity could cost you more liquidity than you wanted, but that just means you might have to wait a while before trying again.

By making costs entirely predictable, you can write smart contracts that will guarantee profitable results in any given transaction. Worst case, you spend some mana to run some code that just tells you there's no profit to be made right now. You don't lose anything.

Because there's no gas cost, you can write a little less efficient code. It's ok to have checks and balances that prevent unprofitable results directly in the smart contract.

You may not be able to front run on Koinos due to its FIFO transaction ordering, but you can guarantee profitable results.

-Luke

P.S. if you need a smart contract built for profitable bot trades on Koinos, you can email me.