Mercor Finance: Disrupting Crypto Markets with Automated Copy-Trading

[Jhon Dolton]

 Cryptoassets continue to attract increasing amounts of investment as the planet begins to learn 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 during the time of writing. However, as large financial institutions such as for example Microstrategy and Grayscale continue to invest considerable amounts into cryptoassets, price volatility can be on the increase. This increasing volatility presents challenging for amateur investors.

 

Mercor Finance is the first and only example of a decentralised automated copy trading platform. Mercor aims to democratise the planet of copy trading by providing investors the ability to invest via user-created trading strategies Best Copy Trading Platform. This grants individual investors use of similar tools which can be commonly utilized by those large institutional investors. But before we dive into Mercor's solution, let's have a closer go through 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 purchase and sell assets. When those rules are met, orders execute. This is defined as algorithmic trading. It has several advantages over investing manually. First, it could operate 24/7 with little downtime, allowing amateur investors to capture the absolute most value from the 24/7 crypto asset market. Second, automated programs never deviate from the principles occur the trading strategies, theoretically making no mistakes. Finally, human emotion is never involved; a trait which can be likely the reason for many to lose 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 can find 60 trading strategies which can be readily available for users to invest in. Many 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 currently deployed on Binance Smart Chain. The project's native token MRCR grants holders increased use of the Mercor platform, with regards to the number of MRCR they stake via the Mercor dApp.

 

Users purchase MRCR to invest in the most used / highest performing algorithms. Naturally, as an individual base increases, demand for use of these algorithms increases in unison with a consequent influence on the demand for MRCR. Moreover, Mercor has 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 welcome page containing links to a few of the core components of the protocol. This includes an educational portal, in addition to 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 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 in order to get access to higher tiers of functionality on the dApp. Stakers of MRCR also can earn an annual percentage yield of up to 20%, paid in MRCR.

 

Additional information on the advantages of the various tiers of access and the amount of staked MRCR required to access those tiers can be found 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 see everything they need to find out to effectively manage their automated trading strategies and portfolio. This includes their real-time trading history, profit or loss percentage, the assets it trades between, the developer who caused it to be and the present number of equity managed by it. The algorithms page is but one of the ways Mercor demonstrates its increased exposure of transparency, an integral feature without other automated trading strategy protocols.

 

The users dashboard provides informative data on the performance of the investments, such as for example 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, in addition to 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 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 which allows the algorithm to keep in touch with Mercor's API. The developer will then use Mercor's Python package along with the API to write 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 number of equity managed by their algorithms, the sum total number of investors with funds in their algorithms and number of created algorithms which can be ‘live'on the dapp. There is also a dining table on the developer dashboard, 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 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 a few other projects trying 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 issue for longer than any development team, providing them with intricate understanding of 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 a few of the algorithms available to investors on Mercor is noteworthy. Despite recent price downtrends across many crypto assets, the most effective 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 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 an increase of organisations to help increase Mercor's exposure in the DeFi space.

 

Mercor aims to include 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, which makes it possible for traditional market assets to be added into Mercor algorithms.

 

With one of these goals at heart, 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, look at the dApp here.