© Copyright Our Wall
Cryptoassets continue steadily to attract increasing levels of investment as the planet begins to learn about the technology behind the assets. In fact, 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 instance Microstrategy and Grayscale continue steadily to invest huge 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 example of a decentralised automated copy trading platform. Mercor aims to democratise the planet of copy trading by giving investors the capacity to invest via user-created trading strategies. This grants individual investors usage of similar tools which are commonly used by those large institutional investors Decentralized Algorithmic Trading Marketplace. 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 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's several advantages over investing manually. First, it may operate 24/7 with little downtime, allowing amateur investors to fully capture probably the most value from the 24/7 crypto asset market. Second, automated programs never deviate from the guidelines occur the trading strategies, theoretically making no mistakes. Finally, human emotion is never involved; a trait that will be likely the cause of many to reduce their entire portfolios.
Mercor allows developers to produce 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 designed for users to invest in. A number of these have been produced 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, 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 in unison with a consequent impact on the demand for MRCR. Moreover, Mercor features 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 delightful page containing links to a few of the core aspects of the protocol. Including an academic portal, along with charts displaying the recent performance of a few of the trading strategies available on the dApp. On the dApp's sidebar, the ‘Buy MRCR'tab offers users the capacity 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 in order to access higher tiers of functionality on the dApp. Stakers of MRCR also can earn an annual percentage yield all the way to 20%, paid in MRCR.
Additional information on the benefits of different tiers of access and the amount of staked MRCR required to get into those tiers could be 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 find out 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 existing amount of equity managed by it. The algorithms page is but among the ways Mercor demonstrates its focus on transparency, a vital feature lacking in other automated trading strategy protocols.
The users dashboard provides home elevators the performance of the investments, such as for instance their total amount invested on Mercor, total earnings from those investments and the existing value of their portfolio. Finally, Mercor's comprehensive educational portal, containing user manuals and other information for both investors and developers, along with their social media profiles, could be accessed via the dapp's sidebar.
When creating an algorithm, developers first give it a couple of key parameters like a title, the set 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 which allows the algorithm to speak with Mercor's API. The developer will then use Mercor's Python package in conjunction 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 in 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 couple of key statistics on the performance of every 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 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 solve this issue for more than any development team, giving them intricate familiarity with the difficulties in the area.
Second, Mercor creates an interesting social dynamic, allowing investors to touch base to developers. This creates rapid iteration, allowing algorithms to be fine-tuned for maximum performance.
Finally, the performance of a few 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 up to 70% return on investment inside 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 an increase of organisations to further increase Mercor's exposure in the DeFi space.
Mercor aims to add the functionality for developers to produce multi-asset pair algorithms, essentially allowing developer created indices. Moreover, the MRCR token will become available via more decentralised and centralised exchanges, making 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 is disrupting the cryptoasset investing world, visit the dApp here.
The Wall