Cryptoassets continue to attract increasing amounts of investment as the planet begins to learn in regards to 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 Microstrategy and Grayscale continue to invest huge amounts into cryptoassets, price volatility can also be on the increase. This increasing volatility presents difficult 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 use of similar tools that are commonly utilized by those large institutional investors. But before we dive into Mercor's solution, let's have a closer look at the definition of automated copy-trading and why it is 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 a set of rules that determine when to buy 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, 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 is likely the explanation for many to lose their entire portfolios.
Mercor allows developers to create new trading strategies and customize those rules at will via the Mercor dApp's developer dashboard. Best Copy Trading Platform Investors using Mercor can invest funds into those strategies via the Mercor dApp's investor environment.
Currently, you can find 60 trading strategies that are available for users to invest in. A number of these have now been produced by high-level developers employed in investment or software firms, ensuring that the trading strategies have expert influence. Mercor Finance's dApp happens to be deployed on Binance Smart Chain. The project's native token MRCR grants holders increased use of the Mercor platform, with respect to the amount of MRCR they stake via the Mercor dApp.
Users purchase MRCR to purchase typically the most popular / highest performing algorithms. Naturally, as the user base increases, demand for use of these algorithms increases together with a consequent impact on the demand for MRCR. Moreover, Mercor includes 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 welcome page containing links to a number of the core elements of the protocol. Including an educational portal, as well as 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 in order to get access to 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.
Extra information on the benefits of the various tiers of access and how many staked MRCR required to access those tiers can be on the ‘Tiers'page of the dApp.
Creating Algorithmic Success
The ‘algorithms'tab allows investors to access all 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 made it and the present amount of equity managed by it. The algorithms page is but among the ways Mercor demonstrates its emphasis on transparency, a vital feature with a lack of other automated trading strategy protocols.
The users dashboard provides information on the performance of the investments, such as 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 couple of key parameters like a name, 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 secret API key which allows the algorithm to communicate with Mercor's API. The developer can then use Mercor's Python package together with the API to publish 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 full total amount of equity managed by their algorithms, the full total amount of investors with funds inside their algorithms and amount of created algorithms that 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 job establishing partnerships with investors and development teams alike, with firms such as BlockBank, Ramp and GD10 Ventures. Developers such as 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 trying 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 now been trying to solve this problem for more than any other development team, giving them intricate familiarity with the issues 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 number of the algorithms open 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 inside a single month, with multi-token trading strategies reaching over 1,200% annually.
Combined, the innovative platform is 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 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, which makes it feasible for traditional market assets to be added into Mercor algorithms.
With your 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 is disrupting the cryptoasset investing world, go to the dApp here.
