The Months Ahead
Namaste,
Firstly let me say a big thank you to all our loyal holders, we have seen your support in our Telegram channel and the excitement around what we have built, and your desire to enter the pools.
Problems
- Mirror trading is mainly targeted towards retail. Gas fees are too expensive on Ethereum and are preventing retail from participating (our target users)
- We have spoken to some funds and some DAOs about them participating in our pools, they find it to be too risky to copy an individual trader, no matter how high their Sharpe ratio is.
We are so close to product market fit, we just need a few final tweaks.
Solution
- We are moving our current pool over to Polygon, this will enable us to better serve our core user base
- After speaking with funds/DAOs we have decided to introduce a new type of pool that trades based on the signals of the top 100–1000 wallets, rather than one individual wallet. This is a similar strategy that some quant funds use. The returns will likely be lower but the Sharpe ratio and consistency will likely be much higher. In all likelihood we will make a pool per token, i.e one that buys and sells BTC when the best wallets do, one for ETH etc.
The Truth
The truth is that no other crypto mirror trading platform wants to tell you is, single wallet copying doesn’t work very well. There are little to none actual quality traders that have a high Sharpe ratio. We scraped the chain and analysed everyone. Mainly this is because there just aren’t enough traders on DEXs yet, so the sample size is too small. The only reasonable solution to the problem is multi wallet signal copying.
The Good News
We have a commitment from at least one DAO to diversify their treasury by entering some of our new multi wallet signal pools. This will result in a considerable boost to our AUM 100x+. This will however take some time for us to build, (1–2 Months).
The Short Term
All the private sale buyers have now been distributed, therefore the monthly sell pressure has been significantly reduced. I am proposing that we pause LP farming for 2 months until after we launch multi wallet signal copying on Polygon so that there is no further unnecessary inflation and sell pressure during this next building phase.
You can vote on this proposal here:
Once again thank you for your continued support. We are going to deliver a product that funds and retail alike will use. Product market fit, then marketing is the way anon… Just hold tight.
