SignalFi

Decentralized copy trading platform using Arcology & Yellow Network for 95% lower costs

SignalFi

Created At

ETHOnline 2025

Project Description

This project, PyUSDCopyBot, is a decentralized copy trading platform that allows retail investors to automatically replicate the trades of expert broadcasters. The project solves two fundamental problems with existing copy trading solutions: 1. High Costs & Unfairness: Current on-chain solutions on blockchains like Ethereum have prohibitive gas costs ($50-$200 per trade) and use sequential execution. This means if 100 users try to copy a trade, the first user gets a good price, but the 100th user can pay up to 11.6% more due to slippage. This makes copy trading unprofitable for anyone with a portfolio under $5,000. 2. Custodial Risk & Poor UX: Centralized platforms (like eToro) force users to deposit funds, creating custodial risk, while on-chain solutions have a laggy user experience, requiring gas and time for simple actions like checking a balance. PyUSDCopyBot solves this by combining three core technologies: Arcology Network (Layer 1): This blockchain provides parallel execution for trade processing. Instead of processing 100 trades one by one, it executes them all simultaneously in a single block (1 second). This ensures every user gets the same fair price (e.g., 0.3% slippage for everyone) and drops the cost per trade to around $1.50. This makes the platform accessible to users with as little as $100. Yellow Network (Layer 2): This provides off-chain state channels for balance accounting. When a user deposits, a state channel is opened. From then on, all balance queries, P&L calculations, and balance updates are instant and gas-free. The user's balance is only settled on-chain when they finally withdraw. PayPal USD (PYUSD): This is used as the stable, trusted settlement currency, which ensures predictable costs and removes volatility risk for users. The primary interface is a Telegram Bot, which provides a simple, mobile-first experience for subscribing to experts and receiving instant trade notifications.

How it's Made

The project is built with a specific technology stack designed for high-speed, low-cost decentralized finance. The system consists of a backend relayer service, smart contracts on the Arcology Network, and an off-chain accounting layer on the Yellow Network. The Relayer Service (Node.js) listens for signals from expert traders via a Telegram Bot webhook. It parses the signal, identifies all eligible subscribers from a PostgreSQL database, and batches their trades into a single transaction. Arcology Smart Contracts (Solidity) include a PyUSDVault, which holds user deposits and handles withdrawals , and a ParallelBatchExecutor, a custom contract that receives the batched transaction from the relayer and executes 100+ user trades simultaneously using Arcology's parallel processing capabilities. For the Yellow Network (State Channels), after a trade is executed on-chain, the backend listener catches the event and instantly updates the user's off-chain balance (P&L, new token amount) in their Yellow state channel. This allows users to query their balance instantly for free via the Telegram bot. The Technology Stack includes: Blockchain Layer: Arcology Network (EVM-compatible L1). State Channel Layer: Yellow Network / Nitrolite SDK (ERC-7824 standard). Backend: Runtime: Node.js v18+, API Framework: Express.js, Database: PostgreSQL 14+, Cache: Redis 7+, Blockchain SDK: Ethers.js v6. Smart Contracts: Language: Solidity 0.8.20, Framework: Hardhat, Libraries: OpenZeppelin Contracts. Frontend: Primary Interface: Telegram Bot API

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