Automated mirror trading and proposed changes to the protocol
Automated mirror trading is around the corner. We can now reveal more details about exactly how it will work and propose some changes to the protocol for optimisation.
We will be leveraging Token Sets for the smart contract infrastructure for Automated Mirror trading, for the following reasons:
- It has been live for a while and is battle tested, (already on V2), has been audited and holds significant AUM ($100m+)
- Their smart contracts have the basic functionality we require for automated mirror trading.
- They are already integrated with Sushiswap, 0x and many other dexes, and have Polygon integrations. This will speed up our ability to mirror trades across various protocols and chains.
- They already have a great fee structure that we can leverage to generate fees for our token holders ΞPED
- They do not charge an additional fee on each tx the Token Set makes, i.e we will only pay the underlying Dex fee (0.3% per trade on Uniswap)
How it will work
Initially we propose to create 3–5 pools for wallets that we have identified as exceptional traders. Focusing all liquidity on a few pools initially will allow for gas fees to be minimized and spread amongst all participants, thereby delivering optimal results.
As AUM scales we will create more pools. In the future we will add new ways for token holders to create AMT pools. For example, if you burn X number of Alphr you are able to create an AMT pool. There may also be the option for a token holder to create a proposal/vote to mint an AMT pool for a specific wallet.
AMT pools will be accessible via the UI on Alphr and on TokenSets.
Alphr will charge a 10% streaming fee on all AMT pools via Token sets. This is 0.8% per month on AUM within the AMT pool. Since many of the addresses that will be copied are delivering several hundreds of percent gains per year, this is negligible for those investing in the pool but provides significant returns for Alphr holders.
If, for example, there is a total of $10m AUM across all Alphr pools that corresponds to $1m in fees per year aggregated to the DAO.
Changes that have been voted on for AMT
Initially it was discussed that Alphr would charge a 0.2% fee on all tx’s both in automated and manual trading as well as a 20% performance fee on automated mirror trading.
We are looking to shift the fees from what is above into a model that allows us to leverage TokenSets’.
TokenSets streaming fees already foster performance and are designed to inceltivize pool growth, as they are leveraged on total AUM linearly.
Adapting our fees to that of TokenSets will give Alphr access to use a battle tested protocol.
Therefore I propose the following change:
- To charge a flat streaming fee of 10% on all AUM in AMT pools. (No tx fee)
Vote here
This Vote has Successfully Passed*
