Our Discoveries at Alphr and How We are Moving Forward
Where We Are
Alphr made strides in becoming the first platform where you can see everyone’s trade history on Uniswap, analyze their performance, and copy their trades in a permissionless fashion. We are proud of those accomplishments and the team that helped create them. Unfortunately this version of Alphr (V1) ultimately didn’t find product market fit and gain traction.
For the past 6 months we have been developing V2 which is currently live. V2 enables you to automatically copy the best traders in crypto. We scraped the Ethereum blockchain and analyzed every trade ever undertaken on Uniswap to find the best traders. Our analyses have provided some key insights on the current state of DeFi and Dex trading.
Ultimately after spending a significant amount of resources researching ways to find the best traders we have discovered that placing your funds in the hands of once well performing traders is not indicative of future success. Most of the top performing traders only perform well for a period of time, indicating more luck than skill.
In short, there are no ‘good’ traders. Most, if not all, do not have high enough sharpe ratios for anyone to “safely” allocate capital to copying their trades. We are likely years away from having a large enough sample size and significant enough volumes on DEXs, to make permissionless copy trading in DeFi a reality.
This article outlines a quick lesson in trading about chance and luck. https://www.forbes.com/sites/eriksherman/2021/09/27/a-crypto-trading-rodent-has-lessons-for-investors/?sh=4e1af1875357
We will be sharing a copy of all our data and analysis should someone want to continue the work we began, we’re also uploading all the code that interacts with the data to github. During this process we spoke with some of the top crypto quant firms, with the goal of having them allocate into our pools. They reaffirmed what we were coming to understand, that they had already done the same analysis of all DEX traders and had discovered that copy trading in DeFi simply doesn’t work yet.
DeFi and these sort of experiments are at the cusp of innovation, sometimes things won’t work, Alphr is one of those, that’s just the unfortunate reality.
Going Forward
Going forward we are working on a deal to be acquired by a DAO. This is not confirmed nor guaranteed
If this is successful $ALPHR holders will be able to swap their tokens for their DAO token once everything in the acquisition has been finalized. We are excited about the possibility of teaming up with this new and upcoming DAO and providing a new opportunity for our long term holders.
In the event this fails, there is a chance we will work on another similar product and integrate the ALPHR token into that product, again this is not guaranteed, it is just one of the options being explored.
More information will be shared as soon as it becomes available…
