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Cryptoassets continue steadily to attract increasing amounts 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 may be worth $2.8 trillion at the time of writing. However, as large financial institutions such as for instance Microstrategy and Grayscale continue steadily to invest large 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 capability to invest via user-created trading strategies Decentralized Algorithmic Trading Marketplace. 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 take a closer consider the definition of automated copy-trading and why it's 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 couple 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 recapture probably the most value out of 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 that will be likely the explanation 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 can find 60 trading strategies that are readily available for users to invest in. Several 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 respect to the number of MRCR they stake via the Mercor dApp.

Users purchase MRCR to buy the most popular / highest performing algorithms. Naturally, as the user base increases, demand for use of these algorithms increases 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 welcome page containing links to some of the core aspects of the protocol. This includes an academic portal, as well as 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 may also earn an annual percentage yield of up to 20%, paid in MRCR.

More information on the benefits of the various tiers of access and the amount of staked MRCR required to access those tiers may be found on the ‘Tiers'page of the dApp.

Creating Algorithmic Success

The ‘algorithms'tab allows investors to access most of the trading algorithms created on the platform and their details. Investors could 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 managed to get and the current number of equity managed by it. The algorithms page is but one of the ways Mercor demonstrates its focus on transparency, a key feature lacking in other automated trading strategy protocols.

The users dashboard provides informative data 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 the 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, may be accessed via the dapp's sidebar.

When creating an algorithm, developers first give it a couple of 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 can then use Mercor's Python package along 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 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 number of investors with funds within their algorithms and number of created algorithms that are ‘live'on the dapp. There is also a desk on the developer dashboard, just like the investor dashboard, which displays a couple of key statistics on the performance of each algorithm that the developer has created.

The team behind Mercor has been hard at work 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 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 fix this issue for longer than some other development team, providing them with intricate familiarity with 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 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 around 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 more organisations to further increase Mercor's exposure in the DeFi space.

Mercor aims to incorporate 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 feasible for traditional market assets to be added into Mercor algorithms.

With your goals in your mind, 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's disrupting the cryptoasset investing world, visit the dApp here.