Mercor Finance: Disrupting Crypto Markets with Automated Copy-Trading

[Jhon Dolton]

 Cryptoassets continue to attract increasing levels of investment as the planet begins to learn in regards to the technology behind the assets. Actually, 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 instance Microstrategy and Grayscale continue to invest considerable amounts into cryptoassets, price volatility is also on the increase. This increasing volatility presents a challenge for amateur investors.

 

Mercor Finance is the very first and only exemplory case of a decentralised automated copy trading platform. Mercor aims to democratise the planet of copy trading by providing investors the capacity to invest via user-created trading strategies algorithmic copy trading. This grants individual investors use of similar tools which can be commonly employed 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's the 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. This has several advantages over investing manually. First, it could operate 24/7 with little downtime, allowing amateur investors to capture the most value from the 24/7 crypto asset market. Second, automated programs never deviate from the guidelines set in the trading strategies, theoretically making no mistakes. Finally, human emotion is never involved; a trait which is 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 can find 60 trading strategies which can be designed for users to invest in. A number 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 use of the Mercor platform, with regards 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 will increase together with a consequent influence on the demand for MRCR. Moreover, Mercor features 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 delightful page containing links to a number of the core components of the protocol. This includes an academic 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 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 to be able to get access to higher tiers of functionality on the dApp. Stakers of MRCR can also earn an annual percentage yield as high as 20%, paid in MRCR.

 

More info on the benefits of different tiers of access and how many staked MRCR required to get into those tiers may be found on the ‘Tiers'page of the dApp.

 

Creating Algorithmic Success

The ‘algorithms'tab allows investors to get into all the trading algorithms created on the platform and their details. Investors can easily see everything they have to know 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 made it and the current amount of equity managed by it. The algorithms page is but one of many ways Mercor demonstrates its increased exposure of transparency, a vital feature without other automated trading strategy protocols.

 

The users dashboard provides info on the performance of the investments, such as for instance their total amount invested on Mercor, total earnings from those investments and the current 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 marketing profiles, may 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 secret API key which allows the algorithm to communicate with Mercor's API. The developer will then use Mercor's Python package in conjunction 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 amount of equity managed by their algorithms, the sum total amount of investors with funds within their algorithms and amount 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 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 always a few other projects wanting 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 dilemma for longer than some other development team, giving them intricate knowledge of the problems in the area.

 

Second, Mercor creates a fascinating 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 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 as much as 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 more organisations to help expand 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 easy for traditional market assets to be added into Mercor algorithms.

 

With these goals at heart, Mercor Finance is proving to be always 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's disrupting the cryptoasset investing world, look at the dApp here.