Cryptoassets continue to attract increasing amounts of investment as the planet begins to master 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 Microstrategy and Grayscale continue 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 giving investors the capability to invest via user-created trading strategies How a Copy Trade Works. 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 consider the definition of automated copy-trading and why it is the ongoing 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 purchase and sell assets. When those rules are met, orders execute. That is defined as algorithmic trading. It's several advantages over investing manually. First, it could operate 24/7 with little downtime, allowing amateur investors to capture probably the most value out 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 that is likely the explanation for many to get rid of 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 designed 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 currently deployed on Binance Smart Chain. The project's native token MRCR grants holders increased usage of the Mercor platform, with respect to the number of MRCR they stake via the Mercor dApp.

Users purchase MRCR to buy typically the most popular / highest performing algorithms. Naturally, as the user base increases, demand for usage of these algorithms increases together with a consequent effect on the demand for MRCR. Moreover, Mercor includes 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 some of the core components of the protocol. Including an educational portal, in addition to charts displaying the recent performance of some of the trading strategies 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 to be able to access 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 details on the benefits of the different tiers of access and the number of staked MRCR required to gain access to those tiers could be on the ‘Tiers'pageof 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 have 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 present level of equity managed by it. The algorithms page is but one of the ways Mercor demonstrates its focus on transparency, a key 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 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, could be accessed via the dapp's sidebar.

When creating an algorithm, developers first give it several key parameters like a title, the pair 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 allowing the algorithm to speak with Mercor's API. The developer may 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. The home screen of Mercor's developer dashboard shows developers their total earnings from the algorithms they've created, the total level of equity managed by their algorithms, the total number of investors with funds within their algorithms and number of created algorithms which are ‘live'on the dapp. There's also a dining table on the developer dashboard, similar to the investor dashboard, which displays several key statistics on the performance of every 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 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 wanting 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 been trying to solve this problem for more than every other development team, giving them intricate knowledge of the difficulties 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 very best 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 is already 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 increase Mercor's exposure in the DeFi space.

Mercor aims to add 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, making it easy for traditional market assets to be added into Mercor algorithms.

With your goals in mind, Mercor Finance is proving to be 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.