In addition to looking at market conditions, MC² Finance’s two-sided marketplace considers the three following foundational participants for the Market Analysis:
Experts² (KOLs, crypto natives, traders) Users² (novice and experienced investors) Partners² (DEXs, wallets, custodians, dApps)
Target market: DEX users² and crypto asset management experts²
MC² Finance’s two-sided marketplace of Experts² and Users² each service three target audiences:
Users²
1. Retail crypto communities - DEXs clients and customers 2. Direct Users² (wallets and DAO communities) 3. Institutional & Asset management Users² (through custodians) MC² Finance Users² are both novice and experienced investors and crypto-natives interested in investing in cryptocurrencies and DeFi protocols, however, lack the necessary knowledge or time to actively research and manage Web3 investments. Any portal or community driving the adoption of tried and tested token strategies, social trading, and community-based investing is a potential User². *MC² Finance's seamless and secure integration engages with investments across multiple DEXs through API integrations.
Experts²
1. DeFi Experts² and KOLs (single individuals) *Market makers (liquidity providers), quantitative traders, portfolio managers, Key Opinion Leaders (KOLs for Defi token strategies)researchers & analysts) - goal follow and increase earnings 2. Crypto-natives (DAOs and Web3 companies - companies, entities and groups - interested in diverisying decentralized offerings products - increase engagement on platforms. 3. Asset management traders (ie. hedge funds, and institutional investment groups) MC² Finance’s marketplace brings together DeFi Experts² and crypto-natives to share knowledge, benefit, and provide token portfolio strategies to Web3. Rating DAOs will also see an opportunity as Experts² on MC² Finance to develop real-time automated audits and onboard third-party standards from traditional finance.
Addressable market and growth potential
The MC²Finance marketplace analysis provided the following insights:
1. $10 trillion in total volume traded across markets in 2022, as shown from Binance data (Binance, 2022). 2. The current size of the DeFi market, as of 2022 is around $14 billion dollars. This figure is expected to surpass $200 billion by 2030, growing at a CAGR of 46% (Decentralized Finance Market Size, 2023). 3. Web3 is seeing increased AUM and institutional adoption of blockchain technology and MC²Finance is building infrastructure in preparation for the next bull market (Crypto Fund Research, 2022). 4. The dApp industry experienced a 50% increase in unique active wallets (dUAW) in 2022, rising from an average of 1.58 million daily dUAW in 2021 to 2.37 million in 2022 (Dapp Radar, 2022). 5. MC²Finances’ core market is the DeFi-Index segment, which had an ATH of 930m TVL and 20 relevant players. See Market Analysis. 6. With integrations into DEXs and MC²Finance positioning to service DEX markets, we have a high 100x multiple of 94,4bn ATH.
Competitive landscape
The current market addresses copy-trading, however, there is a lack of resources and information on asset management. Asset management in crypto is dominated by centralized institutions or single-strategy providers. A general non-custodial marketplace does not exist.
Centralized competitors provide copy-trading platforms, and traditional asset management institutions offer digital asset exposure through proprietary trading. Decentralized competitors offer highly specialized index protocols focusing on a single chain, competing with other communities, and are focused on solutions for crypto-native experts. In DeFi asset management, we slowly see solutions like Metamask-institutional, however, the focus remains on asset management, not strategy options.
Competitors | MC² Finance | Differentiator | Advantage and Results |
Single-chain | Cross-chain | Interoperable cross-chain strategies follow wallets on other chains and DEXs. | Simple UI: A single wallet is used across multiple chains to leverage any Expert strategies through Pool technology. Greater reach and flexibility. |
Competitive to other communities | Cooperative, Integrative | Focus on Whitelabel API integrations & partnering with communities | Community & scale into existing platforms with an easy value add to the Web3 ecosystem. Fast growth and reach to diverse user groups and first movers advantage. |
Crypto-experts | Retail Traders & Institutional | Focus on appealing to the mass market, and institutional capital via Custodians | Leverage market knowledge from a larger pool of experts. By focusing on long-term trends and appealing to institutional customers early, MC² Finance segments a larger market share. Attractive to Asset Management participants & custodians. |
Social Tokens | Clubs with Bonding Curve | Define private content and strategies for Social Club-Token owners. Users need to lock MC²Fi tokens to mint Social Club-Tokens | Social Club tokens are asset-backed and do not manage liquidity (100% Liquidity. Adds utility to MC²Fi token, and increases its rarity. Experts can have exclusive content & strategies that are not public. |
30 day APY | Consistency of Returns & Reputation | The marketplace does not “just” focus on APY. The consistency of returns and reputation
ranking for strategy exposure ensures quality. | Current returns do not guarantee potential future returns. Great consistency is a much better predictor of future returns and reputation incentives result in better returns for the users and a higher-quality community with trustworthy strategies. |
No Auditing | Decentralized Auditing | The first marketplace to introduce auditing capabilities via 3rd parties, and enable such 3rd parties (i.e. Rating-DAOs) to provide a realtime-audit through special standardized codes. | Partners, users, and institutions can verify that an expert follows standards and audits. Traditional structures like “AAA-Rating” can be used in a decentralized manner. Worlds-First real-time audits. This results in higher quality, an incentive to appeal to Institutions, and better Strategies |
Furthermore, We observe that in 2022, the DeFi-Index market had only four players with more than 90% market share, and a total value locked (TVL) ranging from $300 million (low) to $900 million (high). Meanwhile, the DEX market had a maximum TVL of $94 billion. With our partnership strategy and focus, MC² Finance can tap into the DEX market as an Index-dApp.
Unique value proposition
MC² Finance provides a high-quality token portfolio strategies marketplace that empowers financial freedom driving an inclusive and equitable global economy. While enabling equitable participation in financial markets, we are also uniquely positioned to onboard traditional finance institutions. MC² Finance offerings have the flexibility to adhere to the strict set of standards and regulations placed on financial institutions such as pension funds, banks and investment arms through automated auditing mechanisms and Rating DAOs. Blockchain technology layered with a marketplace and multi-chain approach captures horizontal gains across DeFi offerings all the while maintaining vertical industry constraints from traditional finance (policies, regulations, standards on investments).
High-level Feature Set
→ Simple strategy creation and management through standard cross-chain multi-chain pools → Pool-oracles, historical data, reputation & auditing → API & widgets for easy integration into DEXs, wallets, and DAOs → Defined expert clubs and structured Rating-DAOs (automated auditing)
*Review the table above to see the Differentiators of the protocol
The future of asset management
In traditional finance, the best asset management strategies are limited to the wealthy and well-networked. The impact is worldwide inequity distribution lacking transparency rewarding favoritism and the rich. Furthermore, the traditional finance operating systems are redundant and constraining against the advent of blockchain. The settlement layer for programmable finance through smart contract technology has decentralized the global financial systems (DeFi) and increased transaction efficiencies. The opportunity of immutable, trustless, interoperable smart contracts creates faster and economically beneficial methods to access and manage investments.
→ Peer-to-peer transactions, → Digital identity & token gating → Secure data sharing, → Decentralized autonomous organizations (DAOs), community-based decision-making and governance, and → Asset-backed tokenization
With an accessible global marketplace, fractional transaction fees compared to traditional finance, and the tokenization of asset classes that range from real estate to commodities and futures markets, the use cases for asset management and prediction markets become fascinating and dynamic.
BlackRock CEO Larry Fink states the ‘Next Generation for Markets’ Is tokenization, (Decrypt, 2022). BlackRock is the world's largest asset management company, with over $9 trillion in assets under management.
Example use-cases for the advanced capital market products :
→ Farmers can tokenize their yield outputs on futures markets, selling their crops or livestock before they are ready for harvest. → Sports fans can develop sports team investment strategies for global events such as the World Cup, selling and investing in these spots strategies. → Investors, with one click can move assets from DeFi to traditional markets depending on inflation and growth. → Homeowners can liquify their home on-chain - ie 20% of your home you could lock into a smart contract to access and further leverage some of its value.
Across all token portfolio strategies, standards, and certifications to adhere to regulations, compliance and manage risk categories on behalf of user engagement will be an onramp for participation by certain entities (ie. institutional investment). Programmable smart contracts also provide innovation in the development of programmable audits to manage compliance. Asset managers will need to adapt to this new paradigm by developing expertise in token portfolio strategies in decentralized and traditional finance to remain competitive.
The future of asset management will be shaped by these technologies and MC² Finance’s role will be in architecting a multi-chain token strategy marketplace that onboards traditional finance by providing real-time automated standards.