Cryptoassets continue to attract increasing amounts of investment as the world begins to understand concerning 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 at the time of writing. However, as large financial institutions such as for instance Microstrategy and Grayscale continue to invest large amounts into cryptoassets, price volatility can be 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 providing investors the capability to invest via user-created trading strategies. This grants individual investors usage of similar tools which are commonly employed by those large institutional investors. But before we dive into Mercor’s solution, let’s take a closer go through the definition of automated copy-trading and why it is the ongoing future of investing, both in the crypto space, and the mainstream financial sector.
Mercor Finance: A Closer Look
An automated trading strategy is some rules that determine when to get and sell assets. When those rules are met, orders execute. This is defined as algorithmic trading. It’s several advantages over investing manually. First, it can operate 24/7 with little downtime Decentralized Algorithmic Trading Marketplace, allowing amateur investors to fully capture probably the most value out of the 24/7 crypto asset market. Second, automated programs never deviate from the guidelines emerge the trading strategies, theoretically making no mistakes. Finally, human emotion is never involved; a trait which will be likely the cause of many to get rid of their entire portfolios.
Mercor allows developers to generate 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, you will find 60 trading strategies which are readily available for users to invest in. Many of these have been created by high-level developers employed in investment or software firms, ensuring that the trading strategies have expert influence. Mercor Finance’s dApp is deployed on Binance Smart Chain. The project’s native token MRCR grants holders increased usage of the Mercor platform, depending on the amount of MRCR they stake via the Mercor dApp.
Users purchase MRCR to buy the most used / highest performing algorithms. Naturally, as the user base increases, demand for usage of these algorithms increase together with a consequent effect on the demand for MRCR. Moreover, Mercor features a unique staking mechanism, unseen in the DeFi space before and plans to increase 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 available on the dApp. On the dApp’s sidebar, the ‘Buy MRCR’tab offers users the capability 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 all the way to 20%, paid in MRCR.
Additional information on the advantages of the different tiers of access and how many staked MRCR required to gain access to those tiers can be on the ‘Tiers’page of the dApp.
Creating Algorithmic Success
The ‘algorithms’tab allows investors to gain access to every one of the trading algorithms created on the platform and their details. Investors can easily see everything they need 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 caused it to be and the present amount of equity managed by it. The algorithms page is but among the ways Mercor demonstrates its increased exposure of transparency, an integral feature lacking in other automated trading strategy protocols.
The users dashboard provides information on the performance of the investments, such as for instance their total amount invested on Mercor, total earnings from those investments and the present value of their portfolio. Finally, Mercor‘s comprehensive educational portal, containing user manuals and other information for both investors and developers, as well as their social media profiles, can be accessed via the dapp’s sidebar.
When creating an algorithm, developers first give it a few key parameters like a name, the pair of assets it trades between, a brief 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 key API key allowing the algorithm to communicate 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. Your 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 amount of investors with funds within their algorithms and amount of created algorithms which are ‘live’on the dapp. There is also a table on the developer dashboard, just like the investor dashboard, which displays a few key statistics on the performance of every algorithm that the developer has created.
The team behind Mercor has been hard at the office establishing partnerships with investors and development teams alike, with firms such as for instance BlockBank, Ramp and GD10 Ventures. Developers such as for instance 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 trying to tackle decentralized algorithmic trading, Mercor Finance has several advantages. First, Mercor features a first mover advantage in this space. The team behind Mercor Finance have been trying to resolve this problem for longer than any other development team, providing them with intricate familiarity with the issues in the area.
Second, Mercor creates an appealing 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 available to investors on Mercor is noteworthy. Despite recent price downtrends across many crypto assets, the top performing algorithms on Mercor Finance have continued to generate positive returns for investors.In fact, several single-pair strategies have achieved around 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 increased organisations to further increase Mercor’s exposure in the DeFi space.
Mercor aims to add the functionality for developers to generate multi-asset pair algorithms, essentially allowing developer created indices. Moreover, the MRCR token will become available via more decentralised and centralised exchanges, making it easy for traditional market assets to be added into Mercor algorithms.
With these goals in mind, Mercor Finance is proving to be 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 is disrupting the cryptoasset investing world, visit the dApp here.