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Documentation

How Trader Wheel Works

Trader Wheel is a revolutionary fee redistribution system that rewards active traders in the Solana trenches. We analyze on-chain data to identify genuine trading activity and distribute platform fees back to the most active participants.

Data Analysis with Dune Analytics

We use Dune Analytics to comprehensively analyze your wallet's trading history and performance. This industry-standard blockchain analytics platform allows us to:

  • Track your historical trading volume across all Solana DEXs
  • Calculate your profit and loss (PnL) performance
  • Identify consistent trading patterns and activity levels
  • Verify legitimate trading activity vs wash trading
  • Monitor your engagement with various DeFi protocols

Wallet Verification Process

Step 1: Connect Your Wallet

Connect your Solana wallet (Phantom, Solflare, Backpack, etc.) to begin the verification process. We only read your public transaction history - no private keys or sensitive data are accessed.

Step 2: Data Collection

Our system queries Dune Analytics to collect your comprehensive trading data including:

  • Total trading volume over the past 30, 60, and 90 days
  • Number of unique trading sessions
  • Average trade size and frequency
  • Cross-protocol activity analysis
  • Risk-adjusted performance metrics

Step 3: Activity Verification

We analyze your trading patterns to ensure authentic "trench" activity:

  • Minimum 30-day trading history required
  • Regular trading activity (not just one-off transactions)
  • Diverse protocol interactions
  • Realistic profit/loss distributions
  • Human-like trading patterns vs automated activity

Step 4: Allocation Calculation

Your fee allocation is determined by your volume in the trenches:

  • Volume Score: Based on total 30-day trading volume
  • Consistency Score: Regular trading activity multiplier
  • Risk Score: Bonus for higher-risk/higher-reward strategies
  • Community Score: Engagement with multiple protocols

Eligibility Requirements

Minimum Activity Thresholds

  • At least $10,000 in total trading volume over the past 30 days
  • Minimum of 20 trading transactions in the past month
  • Active on at least 3 different DEX protocols
  • Wallet age of at least 60 days
  • Positive or neutral risk-adjusted performance

Fee Distribution Schedule

Fee distributions occur weekly, every Sunday at 12:00 UTC. Your allocation is recalculated weekly based on your rolling 30-day activity. Payments are made directly to your connected wallet address in SOL.

Privacy & Security

All data analysis is performed on publicly available blockchain data. We never access private keys, seed phrases, or any sensitive information. Our integration with Dune Analytics ensures institutional-grade data accuracy and security.

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Whitepaper

Abstract

Trader Wheel introduces a novel fee redistribution mechanism that rewards the most active participants in decentralized finance trading. By leveraging comprehensive on-chain analytics, we create a sustainable ecosystem where platform revenues are shared with the traders who generate the most value through their active participation in the "trenches" of DeFi trading.

Problem Statement

The current DeFi landscape suffers from several key issues:

  • Fee Extraction: Platforms extract significant value from active traders without sharing revenue
  • Wealth Concentration: Passive holders benefit disproportionately compared to active contributors
  • Lack of Recognition: Skilled traders receive no rewards for generating platform activity and liquidity
  • Unsustainable Incentives: Current reward systems often incentivize wash trading and gaming rather than genuine activity

Solution Overview

Trader Wheel solves these problems through a data-driven approach that:

  • Identifies genuine trading activity using sophisticated on-chain analysis
  • Redistributes platform fees to the most active and skilled traders
  • Creates sustainable incentives for continued high-quality trading activity
  • Builds a community-driven ecosystem where value flows to value creators

Technical Architecture

Data Layer

Our system builds upon Dune Analytics' robust Solana data infrastructure:

  • Real-time Ingestion: Continuous monitoring of all Solana transactions
  • DEX Aggregation: Coverage of all major Solana DEXs (Jupiter, Raydium, Orca, etc.)
  • Historical Analysis: Deep historical data for pattern recognition
  • Cross-Protocol Tracking: Unified view of trader activity across protocols

Scoring Algorithm

Our proprietary scoring system evaluates traders across multiple dimensions:

Volume Score (40% Weight)

V = log(total_volume_30d) × consistency_multiplier

Where consistency_multiplier ranges from 0.8 to 1.5 based on trading frequency distribution

Risk-Adjusted Performance Score (30% Weight)

P = (total_pnl / max_drawdown) × sharpe_ratio

Rewards traders who generate returns efficiently while managing risk

Activity Diversity Score (20% Weight)

D = unique_protocols × unique_tokens × time_distribution_factor

Encourages broad ecosystem participation and prevents gaming

Community Impact Score (10% Weight)

C = new_token_discovery + liquidity_provision + market_making_activity

Rewards traders who contribute to ecosystem growth and liquidity

Anti-Gaming Measures

To prevent system manipulation, we implement multiple safeguards:

  • Minimum Holding Periods: Rapid buy-sell cycles are heavily penalized
  • Wash Trading Detection: Statistical analysis identifies artificial volume
  • Sybil Resistance: Multiple wallets from the same entity are detected and consolidated
  • Economic Requirements: Minimum volume thresholds prevent small-scale gaming
  • Dynamic Weighting: Algorithm weights adjust based on detected gaming attempts

Economic Model

Revenue Sources

  • Platform trading fees (0.1% - 0.5% depending on volume tier)
  • MEV extraction partnerships
  • Premium analytics subscriptions
  • Institutional client services

Distribution Model

  • 70% - Redistributed to active traders based on scoring algorithm
  • 20% - Platform development and operations
  • 5% - Insurance fund for system stability
  • 5% - Community development and partnerships

Roadmap

Phase 1: Foundation (Q1 2025)

  • Launch core scoring algorithm
  • Implement Dune Analytics integration
  • Begin fee redistribution program
  • Onboard initial trader community

Phase 2: Expansion (Q2 2025)

  • Add multi-chain support (Ethereum, Base)
  • Launch advanced analytics dashboard
  • Implement social trading features
  • Partner with major DEX aggregators

Phase 3: Ecosystem (Q3-Q4 2025)

  • Launch native token with governance utilities
  • Implement cross-chain fee redistribution
  • Add institutional trading tools
  • Develop API for third-party integrations

Risk Factors

Potential risks and mitigation strategies:

  • Regulatory Risk: Compliance with evolving DeFi regulations across jurisdictions
  • Technical Risk: Blockchain infrastructure dependencies and smart contract vulnerabilities
  • Market Risk: Crypto market volatility affecting trader participation
  • Competition Risk: Similar platforms emerging with competitive offerings

Conclusion

Trader Wheel represents a paradigm shift toward equitable value distribution in DeFi. By rewarding the most active and skilled participants, we create a sustainable ecosystem that grows stronger with increased participation. Our data-driven approach ensures fair allocation while preventing gaming, establishing a new standard for community-centric platform economics.

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Fee Structure

Trading Fees

Our fee structure is designed to be competitive while ensuring maximum redistribution to active traders. Fees vary based on your trading volume tier and activity level.

Trencher Tier (Default)

Requirements: $10K+ monthly volume, 20+ trades

Trading Fee: 0.25%

Fee Redistribution: 70% of fees returned to active traders

Benefits: Basic analytics, weekly payouts

Active Trader

Requirements: $50K+ monthly volume, 50+ trades

Trading Fee: 0.20%

Fee Redistribution: 75% of fees returned

Benefits: Advanced analytics, priority support

Volume Trader

Requirements: $250K+ monthly volume, 100+ trades

Trading Fee: 0.15%

Fee Redistribution: 80% of fees returned

Benefits: Real-time analytics, dedicated account manager

Institution

Requirements: $1M+ monthly volume, custom requirements

Trading Fee: 0.10% (negotiable)

Fee Redistribution: Custom arrangement

Benefits: API access, custom integrations, priority execution

Fee Redistribution Mechanism

The majority of platform fees are redistributed back to active traders based on their activity scores. Here's how it works:

Weekly Collection

All trading fees are collected in a redistribution pool throughout the week. The pool accumulates fees from all trading activity across all user tiers.

Score Calculation

Every Sunday, we calculate each trader's activity score based on their 30-day trading history using our proprietary algorithm that considers volume, consistency, diversity, and performance.

Proportional Distribution

The redistribution pool is distributed proportionally based on activity scores. Higher scores receive larger payouts, incentivizing consistent and high-quality trading activity.

Automatic Payout

Payouts are automatically sent to your connected wallet every Sunday at 12:00 UTC in SOL. Minimum payout threshold is $10 equivalent to reduce transaction costs.

Additional Fees

Premium Analytics Subscription

Cost: $50/month or 100 SOL/year

Includes: Real-time portfolio analytics, advanced risk metrics, custom alerts, API access, and exclusive market insights.

Priority Execution

Cost: +0.05% per trade

Benefits: Front-of-queue execution, reduced slippage, MEV protection, and guaranteed settlement within 1 block.

Copy Trading Service

Cost: 20% of profits generated

Features: Follow top-performing traders, automatic position mirroring, risk management controls, and performance tracking.

Volume Thresholds & Bonuses

Additional benefits based on your trading activity:

$10K Monthly Volume

Bonus: 1.1x redistribution multiplier

Perks: Basic trader tier, weekly analytics reports

$50K Monthly Volume

Bonus: 1.25x redistribution multiplier

Perks: Discord VIP access, monthly strategy calls

$250K Monthly Volume

Bonus: 1.5x redistribution multiplier

Perks: Direct line to development team, feature request priority

$1M+ Monthly Volume

Bonus: 2x redistribution multiplier + custom benefits

Perks: Dedicated account manager, custom API endpoints, co-marketing opportunities

Fee Transparency

We believe in complete transparency regarding our fee structure:

  • All fees are clearly displayed before transaction confirmation
  • Monthly fee reports are available to all users
  • Real-time fee pool balance is publicly viewable
  • Redistribution calculations are open source and auditable
  • No hidden fees or surprise charges

Payment Methods

We accept payments in the following cryptocurrencies:

  • SOL - Primary payment method with 5% discount
  • USDC - Standard rates, instant processing
  • USDT - Standard rates, instant processing
  • Major Solana Tokens - Converted at market rates

All redistributions are paid in SOL to maintain ecosystem alignment.