Cryptoassets continue to attract increasing levels of investment as the planet begins to understand about 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 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 initial and only exemplory case 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 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 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 a set of rules that determine when to purchase and sell assets. When those rules are met, orders execute. That 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 recapture the absolute most value out of 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 reason for many to reduce 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 will find 60 trading strategies which are readily available for users to invest in. Many 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 the consumer base increases, demand for usage of these algorithms increase in unison 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 pleasant page containing links to some of the core components of the protocol. Including an educational portal, along with charts displaying the recent performance of some 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 gain 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 information on the benefits of the various tiers of access and the amount of staked MRCR required to gain access to those tiers could be located on the ‘Tiers'page of the dApp. Creating Algorithmic Success The ‘algorithms'tab allows investors to gain access to all 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 managed to get and the current number of equity managed by it. The algorithms page is but among the ways Mercor demonstrates its emphasis on transparency, an integral feature with a lack of other automated trading strategy protocols. The users dashboard provides info on the performance of the investments, such as 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, along with their social media profiles, could be accessed via the dapp's sidebar. When creating an algorithm, developers first give it a few key parameters like a name, the set of assets it trades between, a quick 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 keep in touch with Mercor's API. The developer can 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. The house screen of Mercor's developer dashboard shows developers their total earnings from the algorithms they've created, the total number of equity managed by their algorithms, the total quantity of investors with funds inside their algorithms and quantity of created algorithms which are ‘live'on the dapp. There's also a table on the developer dashboard, just like the investor dashboard, which displays a few key statistics on the performance of each 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 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 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 some of the algorithms open 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 increased 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, rendering it feasible for traditional market assets to be added into Mercor algorithms. With your goals in your mind, Mercor Finance is proving to be 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, go to the dApp here.
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