Experts²
Experts² are traders, organizations, or DAOs who have participated in user strategy development and have received the Expert² designation from MC² Finance. User strategy development requires applicants to engage in reputation-building before strategies are shared and visible in MC² Finance and its network.
Strategy visibility | reputation & consistency of returns
Both the Expert² and Strategy² reputations must be managed for optimal visibility on MC² Finance.
Factors changing base strategy score:
- Performance - Consistency - Risks - Audits
Expert² Strategy core criterion algorithm for high visibility relies on reputation and consistency of returns over time. More specifically, reputation weighs the risk category, the number of qualified audits completed, and verifications through socials (KYC-TBD).
Meanwhile, the calculation of the consistency of returns considers the spread of the daily average return over the last 60 days and weighs on the predictability of future returns from past consistency as the ratio of past real earnings to current stock prices is a powerful predictor of future real returns (Campbell, 1988). Specific details on the calculation will be disclosed before mainnet.
Factors impacting based expert score:
- Verify (socials, KYC): + - Performance on past & other strategies: + - - Audits: +
Experts² start with a base reputation. Positive and negative manipulators impact the reputation ranking over time. Examples of positive manipulators include verifications and audits. Negative manipulators include high-risk assets, wallets actioning high volumes of trades unrelated to the strategy, or MC² Finance warnings that have not been cleared*.
*The system issues a warning of an error to the Expert², and if the Expert² does not react, it's logged as a negative event.
What makes a good strategy?
While Experts² and Strategies² start with a base reputation, they are not listed or VISIBLE in the marketplace. To protect MC² Finance’s Users², new token portfolio strategies must build trust through reputation and participate in reputation activities to gain visibility and exposure.
Good strategy categorization for Experts² and Strategies² are scored based on the factors outlined above and include consistent return performance over a 60-day review. DeFi strategy proposals must also be clearly communicated to the marketplace. Remember MC² Finance focuses on strategies that hold the token for longer.
Expert payouts
Experts² define the protocol fees for their strategies and receive payouts from the protocol, depending on the popularity of their content contribution (including strategies).
While MC² Finance rewards Experts² for the success of their content contribution (including strategies), content can include, signals, writing about tokens and strategies, and making follower updates on connected socials mentioning MC² Finance. These kinds of content contributions are outlined in participating incentive programs.
Adding DeFi tokens to strategies
Spot-tokens are at the core of the MC² Finance protocol. As the protocol evolves, DeFi tokens based on popular demand (ie. AAVE) from the Experts² and newer smaller DeFi protocols, liquidity portfolios, and lending platforms will come online. Furthermore, as token strategies and portfolios access more chains, the intricacy of the token solutions will become more interesting.
*After the MC² Finance IDO, the DAO will administer governance on the DeFi tokens pipeline and will inform decision-making on how and which ones are added.
Where can you trade?
As the protocol evolves we will continually develop partner integrations with chains, dApps, and DEXs. MC² Finance’s whitelisted DEXs enable our economic engine and accompanying oracles to audit strategies for the marketplace.
*We are evaluating integrations with hummingbot and CCXT to skip DEXs as many traders leverage these platforms
Privacy and non-public strategies
A normal strategy on MC² Finance is fully public and visible to anyone. As well as the source Wallet from the expert, and the portfolio that follows it.
In some circumstances, the expert would want to wish to keep the strategy secret. This means that the user should only see the type of tokens traded, but not the exact amount or ledger.
This concept is currently being evaluated and we prototyped several solutions for this challenge. If you are having a special use-case where this would be required, we would love to hear from you and see how we can make this happen.