thetradingparrot
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Could Mercor.finance become the future of running decentralised bots?
🕑 Added 2021-09-01 14:20:40 +0000 UTCI just had a one hour call with the CTO of Mercor.finance
Guys, I'm blown away with what these guys have built.
The have created a full ecosystem to trade with bots fully decentralised.
You stake their coin an immediately gain access to bots designed by bot masters.
They are launching their beta very soon so they wanted to get in touch so I can become a strategy builder and help them review the platform on YouTube.
Since I started running bots I keep constantly thinking that the days of centralised exchanges are counted. The more the crypto total market cap grows the more regulation and challenges we will be facing.
At the moment Binance is asking for KYC to everybody to be able to use API keys. Expect that to increase dramatically in the next years. And that is going to definitely provide a huge incentive for people to try to find ways to carry on running bots but without all these eyes constantly on you.
Mercor doesn't use KYC, they currently connect to your metamask and support BSC network. Soon they will integrate with other smart chains like ETH. BSC is pretty fast and fees are decent enough to actually trade already, but imagine a platform like this on smart chains like SOL or ADA. They can do tens of thousands of transactions simultaneously while keeping fees at a minimum. And don't forget, all of this, decentralised.
They now have a WIP end-to-end and their next steps are to build a robust backtesting system which is due for October.
If I was you I would consider buying 10K MRCR - Mercor finance token (which today is ~300 USD ) as that's what they will be asking to be able to use the entry features. Once the platform goes live I expect MERCOR token to increase in value which would make it more expensive to join. That's assuming that these guys final product turns out an amazing product.
How does it work?
When a developer deploys a new trading algorithm live the strategy gets connected to a contract that goes live in the network (BSC in this case, for now). This contract then retains all the funds from all investors who follow the trading bot as a shared funds pool that is in the blockchain.
The beauty is that in the blockchain it displays the total amount of all investors running the bot, not separated by user. So it remains VERY anonymous. When want to stop following the bot, you are in practice unstacking the funds from the bot and therefore from the pool, which is the bot contract in the network. What a piece of great technology!
My only concerns at the moment is the lag on execution of orders. I really want to see this working in a real environment. A traditional exchange can fill orders in milliseconds if there's enough liquidity. Mercor is currently supporting pancake swap. Should we expect considerably extra lag to execute orders? can they be cancelled/ignored if the price is out of the accepted range? Is there a chance that orders get partially filled? There's so many questions on a fully new trading environment but I admit it's very exciting too.
I'm not aware of any competition to this yet so even if it was not perfect when becoming available I believe it will still attract a lot of attention.
I'm very excited as this is a very big step in the right direction for decentralised bot trading.
What's next? They are going to give me access to develop some strategies and run them. I won't make anything available unless I'm able to fully run this and backtest it. Maybe I'll need volunteers to do some tests, I'm sure it'll be big fun too.
Let me know what do you think!
- Would you consider trading with bots in a non-KYC decentralised environment?
- Which opportunities and risks do you see to this approach?
- Are you aware of anything close to this initiative?
Links:
Comments
*10k MRCR (~$300), not $10k of MRCR. Never risk more than you're willing to lose.
David May
Surely that fee is scalable. They won't get a lot of business if 1 MRCR goes to 1$
Any thoughts on UBTX?
David May
If you have metamask, you can add it via the link on coinmarketcap. Set metamask to BSC mainnet first https://coinmarketcap.com/currencies/mercor-finance/
David May
I've been thinking the same, I think the future is with projects like thorchain. I'm definitely interested in hearing more
Decentralized is fine, but will it be a secure platform? Will you move your money to this blockchain? What if you have a problem? KYC is not a problem in the end if I make money. Will you convert 10k into mercor? mmm
Is the token available yet? I visited the link from their site and nothing loaded in pancakeswap.
This is how I want to trade bots, free from CEX. Our team were discussing recently that there is a huge opportunity for developers to provide DEX trading solutions, especially with the recent increase in CEX restrictions. You mention 'following' the bots, can we take from this that although users will have a choice of bots, they will have no option to tweak settings? Unnamed999 shared on the server this morning https://gridex.io/ - this is from Decommas, a new 3Commas DEX venture built on SOL. I spoke with one of their admins and right now their focus is on grids but ultimately they want to provide a complete bot trading platform.
Thanks Ryan, we are definitely early in the game which I think it's the best part. We'll take the biggest cut before all the FOMO comes in late.
This sounds like the right direction and future. Decentralized bots are going to be here to stay. As you said, lots of questions but with time, testing, and improvement it'll be the best thing out there. If you need help I'd definitely pitch in and help!
