Stacking strategies & types
Strategy Types
(1) Type 1: Expert² Strategy
Expert² strategists create on-chain strategies and define earnings or the deposit and profit fees incurred for the Users² on MC² Finance. Based on quality and consistency of performance, Expert² strategies are scored and showcased on the protocol through a reputation ranking. Experts² can stack and depend on other Expert² strategies on MC² Finance, however, this method has a risk of increasing the User² fees drastically.
(2) Type 2: User² Strategy
Users² can layer any strategy in their basket, creating User² strategies. V1 of this stacking feature is created virtually, off-chain.
Note: A copied User² strategy will remain fixed, only changes in the base Expert² Strategy are variable and have the ability to change over time.
Strategy visibility | reputation & consistency of returns
Both the Expert² and Strategy² reputations must be managed for optimal visibility on the protocol.
Factors changing base strategy score:
- Performance - Consistency - Risks - Audits
Factors impacting based expert score:
- Verify (socials, KYC): + - Performance on past & other strategies: + - - Audits: + - Platform Support: +
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.
Economic engine (risk tagging)
MC² Finances’ economic engine automates risk tags and provides insights in real-time to Users², supporting informed decision-making on strategies in the marketplace.
Risk Tagging Examples:
- Trading low-liquid assets - Trading risky assets - The account/wallet is cluttered and hard to follow*. *Wallets actioning high volumes of unrelated trades increases the risk of an unintentional error occurring. -An expert failing to respond to communication
Risks can have levels and contain reputation manipulators to reduce or increase visibility in the network.
MC² Finance audits
Expert Strategies² are self-enforced guarantees about the scope of the strategy. These manual verifications increase the quality of the Expert Strategy², however, limit the ability to “add anything” to the strategy. Rating-DAOs will be able to create and enforce their own audit codes in their Expert Strategies².
Example → “only the top 100 tokens”, “only portfolios with high liquidity”
User advantages
Partners (DEXs, wallets, launchpads)
→ Increase your customer & community engagement → Tailor custom DeFi token portfolio strategies and refine services → Competitive advantage increasing user experience → Quick win as integration is very easy → Access Experts² and their knowledge of DeFi
Users² (traders, crypto-natives, institutions)
→ Simple and flexible depending on risk appetite → Save time and effort researching the latest information about protocols + tokens → Rely on and choose from Experts² in the DeFi industry → Access an array of multichain token portfolio strategy options you can stack → Define parameters through automated audits for regulations and compliance
Experts² (KOLs, Rating DAOs)
→ Enter and define a marketplace in a nascent, emerging tech space → Share your knowledge and support the democratization of digital asset strategies → Earn an income from your research and strategies → Onboard and facilitate mass adoption of DeFi through automating standards → Develop a reputation in the Web3 ecosystem