Cryptoassets continue to attract increasing amounts of investment as the world begins to learn about the technology behind the assets. In fact, the data show the cryptocurrency market recorded 600% growth year-to-date and is worth $2.8 trillion during the time of writing. However, as large financial institutions such as for example Microstrategy and Grayscale continue to invest large amounts into cryptoassets, price volatility is also on the increase. This increasing volatility presents challenging for amateur investors.
Mercor Finance is the initial and only exemplory case of a decentralised automated copy trading platform. Mercor aims to democratise the world of copy trading by giving investors the ability to invest via user-created trading strategies. This grants individual investors usage of similar tools which are commonly used by those large institutional investors. But before we dive into Mercor's solution, let's take a closer consider the definition of automated copy-trading and why it's the ongoing future of investing, both in the crypto space, and the mainstream financial sector.algorithmic copy trading
Mercor Finance: A Closer Look
An automated trading strategy is a couple of rules that determine when to get and sell assets. When those rules are met, orders execute. This is defined as algorithmic trading. This has several advantages over investing manually. First, it may operate 24/7 with little downtime, allowing amateur investors to fully capture the most value out of the 24/7 crypto asset market. Second, automated programs never deviate from the guidelines set in the trading strategies, theoretically making no mistakes. Finally, human emotion is never involved; a trait that will be likely the explanation for many to get rid of their entire portfolios.
Mercor allows developers to create new trading strategies and customize those rules at will via the Mercor dApp's developer dashboard. Investors using Mercor can invest funds into those strategies via the Mercor dApp's investor environment.
Currently, there are 60 trading strategies which are readily available for users to invest in. Several have been developed by high-level developers employed in investment or software firms, ensuring that the trading strategies have expert influence. Mercor Finance's dApp is currently deployed on Binance Smart Chain. The project's native token MRCR grants holders increased usage of the Mercor platform, depending on the quantity of MRCR they stake via the Mercor dApp.
Users purchase MRCR to invest in typically the most popular / highest performing algorithms. Naturally, as the consumer base increases, demand for usage of these algorithms increases in unison with a consequent impact on the demand for MRCR. Moreover, Mercor has a unique staking mechanism, unseen in the DeFi space before and plans to boost the utility of MRCR further in the future.
Upon launch, the Mercor dApp greets investors with a pleasant page containing links to some of the core elements of the protocol. Including an educational portal, as well as charts displaying the recent performance of some of the trading strategies on the dApp. On the dApp's sidebar, the ‘Buy MRCR'tab offers users the ability to directly swap between BNB or BUSD and MRCR, or buy BNB with fiat. The ‘Stake MRCR'tab allows users to stake any MRCR tokens they hold to be able to access higher tiers of functionality on the dApp. Stakers of MRCR can also earn an annual percentage yield of up to 20%, paid in MRCR.
Extra information on the benefits of different tiers of access and the amount of staked MRCR required to access those tiers can be located on the ‘Tiers'page of the dApp.
Creating Algorithmic Success
The ‘algorithms'tab allows investors to access most of the trading algorithms created on the platform and their details. Investors can see everything they have to know to effectively manage their automated trading strategies and portfolio. Including their real-time trading history, profit or loss percentage, the assets it trades between, the developer who made it and the current amount of equity managed by it. The algorithms page is but one of many ways Mercor demonstrates its emphasis on transparency, a key feature lacking in other automated trading strategy protocols.
The users dashboard provides information on the performance of the investments, such as for example their total amount invested on Mercor, total earnings from those investments and the current value of these portfolio. Finally, Mercor's comprehensive educational portal, containing user manuals and other information for both investors and developers, as well as their social networking profiles, can be accessed via the dapp's sidebar.
When creating an algorithm, developers first give it a few key parameters like a title, the pair of assets it trades between, a quick description of how it works and some category labels. Algorithms created on Mercor are deployed as smart contracts to the BSC blockchain. After deploying a Mercor algorithm, the developer is given a secret API key which allows the algorithm to keep in touch with Mercor's API. The developer may then use Mercor's Python package along with the API to create their algorithm.
Once an algorithm is deployed and ‘live'on the Mercor platform, the algorithm's developer can track its performance via the dapp's developer dashboard. The home screen of Mercor's developer dashboard shows developers their total earnings from the algorithms they've created, the sum total amount of equity managed by their algorithms, the sum total quantity of investors with funds inside their algorithms and quantity of created algorithms which are ‘live'on the dapp. There's also a dining table on the developer dashboard, just like the investor dashboard, which displays a few key statistics on the performance of each algorithm that the developer has created.
The team behind Mercor has been hard at the job establishing partnerships with investors and development teams alike, with firms such as for example BlockBank, Ramp and GD10 Ventures. Developers such as for example Bot Capital, Moonquant Capital and LX Trading are actively developing on the platform.
What Sets Mercor Apart?
While there are certainly a few other projects attempting to tackle decentralized algorithmic trading, Mercor Finance has several advantages. First, Mercor has a first mover advantage in this space. The team behind Mercor Finance have been trying to resolve this problem for more than any development team, giving them intricate knowledge of the issues in the area.
Second, Mercor creates an interesting social dynamic, allowing investors to reach out to developers. This creates rapid iteration, allowing algorithms to be fine-tuned for maximum performance.
Finally, the performance of some of the algorithms offered to investors on Mercor is noteworthy. Despite recent price downtrends across many crypto assets, the utmost effective performing algorithms on Mercor Finance have continued to generate positive returns for investors.In fact, several single-pair strategies have achieved as much as 70% return on investment in just a single month, with multi-token trading strategies reaching over 1,200% annually.
Combined, the innovative platform has already been positioning itself at the forefront of development in the automated copy trading space.
Mercor is Developing at Pace
Mercor Finance has been on a developing spree in recent years. Their roadmap includes upgrading existing features within the Mercor dApp, increasing the utility of the MRCR token and partnering with more organisations to further increase Mercor's exposure in the DeFi space.
Mercor aims to incorporate the functionality for developers to create multi-asset pair algorithms, essentially allowing developer created indices. Moreover, the MRCR token will become available via more decentralised and centralised exchanges, rendering it feasible for traditional market assets to be added into Mercor algorithms.
With your goals at heart, Mercor Finance is proving to become a pioneer in both the crypto investing world and the algorithmic trading world.
For more on Mercor's innovative service, native token and how it's disrupting the cryptoasset investing world, look at the dApp here.
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