May 13, 2021

6 min read

FNDZ — Copy trading made easy

Are you a good trader? Honestly?

I know, this may sound like a blunt question, and answering it requires a moment of introspection and honesty.

I for one will admit that I’m not a good trader. I’ve made some successful trades, but they were always called by someone more experienced than me. I would go as far as saying that some of my profitable trades were not “good” trades. I have the bad habit of entering too late and exiting too soon, so even my good trades are less profitable than they should be. Sound familiar?

After realizing that I was not skilled enough and also too emotional to trade by myself, I decided to “copy trade”: follow the calls of better traders. I thought I couldn’t lose. The only thing I had to do was choose a trader with a good track record. But I quickly (and expensively!) found out that this was not enough. Execution is key and I was often not available to act at the right time. Communication between me and the trader was also not good enough (that horrible moment when your realize that the trade has already been closed in profit by the trader you’re following but you are in the red because he forgot to mention that he already exited the position…)

However, there are a lot of very talented crypto-traders out there offering access to their trading setups and good opportunities for profit. But this space is in dire need of the right tool for people like me (the majority of traders) to connect with them. And that is why I’m very excited with the solution provided by…

FNDZ — the world’s best DeFi social trading platform

OK, I know what you’re going to say, “world’s best” sounds very much like a sales pitch, but wait until you read what they have to offer. You may get in line to get access to their product.

First of all, in traditional markets, copy trading is best known as “social trading” and is one of the key products offered by companies like eToro (the Alec Baldwin ads on youtube anyone? Yes, those annoying ones…) But it may come with downsides that are hidden at first, especially to the novice trader: hidden fees, unfair order books and limited asset availability, to name a few.

How is FNDZ better?

Transparent fee structure: you know what, to whom and how much you will pay in order to copy a certain trader.
A fair order book: the liquidity available on the platform is pooled. There are no buy or sell walls set up to manipulate the markets to your disadvantage.
You keep control over the asset you trade. Social trading often relies on derivatives, which means you don’t own the asset but another product created by the platform that is more or less linked to the asset. This means you don’t really own the asset. With FNDZ, you can withdraw the asset to your wallet anytime - it belongs to you. This is also a far better solution than trading on a centralized exchange that may freeze asset withdrawals at any time and for any period of time they see fit!

How do you use the platform? Simply choose a pro trader to copy

Find a pro-trader you want to copy and just do it!— © FNDZ

You can browse the platform for the pro traders’ profiles. They provide basic information like trading philosophy and past performance but you may refine your search with more elaborate filters like risk, return and special interest categories.

These categories will allow you to find a trader whose strategies you understand and in a field you like, but whom you don’t have the time or the skills to monitor. For example, let’s say I believe that DEXes are here to stay and want to trade tokens like UNI, 1INCH and PPAY. I may look for a trader specializing in these. If I want to also be exposed to CEXes tokens, I will look for a trader with good performances in this area.

Browse through pro traders profiles — © FNDZ

Fund the trader’s vault and let him do the work!

Once you’ve chosen a trader to copy, you simply have to deposit funds to their “vault” through Metamask or even with a credit card payment.

Let’s say I’m a pro trader and you want to follow my $UNI trade. You just have to join my vault by depositing any amount of money you see fit into it. For example, you deposit $1000 in my vault. Now let’s imagine $UNI goes up in value 100%, my vault will be up 100% and you will now be able to redeem up to $2000 minus fees, should you want to exit at some point.

Deposit your funds into the pro trader’s vault and you immediately start copying its trades — © FNDZ

The trader’s strategies are implemented using smart contracts and you are free to interact with them at any time, entering or exiting them when you see fit.

How much does it cost?

The copy trader will have to pay the following fees:

Management fees: these are set by the pro trader who will earn half of them. The other half will be used by the FNDZ platform to buyback and burn $FNDZ tokens.
Performance fees: 20% paid to the pro trader for successful management of assets.
Redemption fees: paid when the copy-trader decides to leave the vault.

Onchain verified PNL

We’ve seen FNDZ offers an efficient filtering system to find the right trader to copy, but how can we be sure that the performances shown are true and reliable?

The beauty of decentralization and blockchain is on display here. Each pro traders’ trades are recorded on the blockchain and accessible to every user. FNDZ guarantees that the profits shown on the trader’s profile are correct. This means you don’t have to take their word for it.

No other social trading platform has this level of transparency as a core feature!

From the pro trader’s perspective

While we want to copy the best traders, the platform must also convince them to come share their trades with the rest of us!

We already saw that pro traders will earn from fixed performance fees and variable management fees set by them. But that’s not all: traders on the platform will be able to generate a referral link and earn referral fees for each new investor they bring onto the platform.

Pro traders will also be able to leverage the platform through advertising to increase their number of copy traders and hence their revenue.

Advertising options for pro traders — © FNDZ

The platform will also offer weekly challenges where top traders will win a prize pool and leaderboards where the performance of the best traders will be on display.

This will maintain competition between traders and ultimately benefit both pros and copiers, with increased visibility for the former and easy access to best performing pros for the latter.

Competions and leaderboards: prizes and increased visibility— © FNDZ

$FNDZ — the platform token

The platform is powered by the $FNDZ token which allows one to vote on governance proposals and is used to pay rewards and buy services:

Pro traders have to pay a vault creation fee in $FNDZ.
Pro traders will need $FNDZ to pay for advertising.
Referral fees will be paid in $FNDZ.
All users of the platform will be able to stake FNDZ and earn a fraction of the performance fees platform wide.