© Copyright khedmeh Wall
Cryptoassets continue steadily to attract increasing levels of investment as the planet begins to learn in regards to the technology behind the assets. In reality, the data show the cryptocurrency market recorded 600% growth year-to-date and may be worth $2.8 trillion during the time of writing. However, as large financial institutions such as for example Microstrategy and Grayscale continue steadily to invest considerable amounts into cryptoassets, price volatility can be on the increase. This increasing volatility presents a challenge for amateur investors.
Mercor Finance is the very first and only example of a decentralised automated copy trading platform. Mercor aims to democratise the planet 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 utilized by those large institutional investors. But before we dive into Mercor's solution, let's take a closer look at the definition of automated copy-trading and why it's the continuing 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. That is defined as algorithmic trading. It has several advantages over investing manually. First, it may operate 24/7 with little downtime Decentralized Algorithmic Trading Marketplace, allowing amateur investors to capture the most value from 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 that will be likely the explanation for many to reduce 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, you will find 60 trading strategies which are readily available for users to invest in. A number of these 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 deployed on Binance Smart Chain. The project's native token MRCR grants holders increased usage of the Mercor platform, with regards to the quantity of MRCR they stake via the Mercor dApp.
Users purchase MRCR to buy typically the most popular / highest performing algorithms. Naturally, as an individual base increases, demand for usage of these algorithms will increase together with a consequent effect on the demand for MRCR. Moreover, Mercor includes a unique staking mechanism, unseen in the DeFi space before and plans to improve the utility of MRCR further in the future.
Upon launch, the Mercor dApp greets investors with a pleasant page containing links to a number of the core aspects of the protocol. Including an educational portal, along with charts displaying the recent performance of a number 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 may also earn an annual percentage yield of up to 20%, paid in MRCR.
More info on the benefits of the various tiers of access and how many staked MRCR required to get into those tiers can be found on the ‘Tiers'pageof the dApp.
Creating Algorithmic Success
The ‘algorithms'tab allows investors to get into every one of the trading algorithms created on the platform and their details. Investors could 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 existing level of equity managed by it. The algorithms page is but one of many 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 example their total amount invested on Mercor, total earnings from those investments and the existing value of the portfolio. Finally, Mercor's comprehensive educational portal, containing user manuals and other information for both investors and developers, along with their social networking profiles, can be accessed via the dapp's sidebar.
When creating an algorithm, developers first give it a couple of key parameters like a title, the couple 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 will 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 house screen of Mercor's developer dashboard shows developers their total earnings from the algorithms they've created, the total level of equity managed by their algorithms, the total quantity of investors with funds in their algorithms and quantity of created algorithms which are ‘live'on the dapp. There's also a table on the developer dashboard, like the investor dashboard, which displays a couple of 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 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 always a few other projects attempting to tackle decentralized algorithmic trading, Mercor Finance has several advantages. First, Mercor includes a first mover advantage in this space. The team behind Mercor Finance have been trying to resolve this problem for longer than some other development team, providing them with intricate understanding of the problems 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 a number 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 as much as 70% return on investment inside a single month, with multi-token trading strategies reaching over 1,200% annually.
Combined, the innovative platform is already 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 an increase of organisations to help increase Mercor's exposure in the DeFi space.
Mercor aims to add 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 one of these goals in your mind, Mercor Finance is proving to be always a pioneer in both 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, go to the dApp here.
The Wall