How copy-trading can help investors catch up with the decentralized crypto market

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Decentralized finance (DeFi) is increasingly difficult to ignore. It is now responsible for freezing sums amounting to 200 billion dollars and more.

Total Locked-In Value (TVL) in DeFi has skyrocketed over the past year, and the number of new wallet addresses interacting with DeFi protocols has increased by 65% ​​in the first half of the year on a single blockchain. In addition to these numbers, MetaMask, arguably DeFi’s most popular crypto wallet, reported just over 10 million active users in August 2021, and those user numbers represent an 1800% increase over previous years. 545,000 active users in 2020.

This is, by all means, explosive growth for DeFi, but the estimated number of users who own some form of cryptocurrency around the world is well north of 100 million people, and the protocols DeFi are far from registering as many participating addresses. It must be concluded that DeFi’s potential growth is still far from reaching its potential.

As a result, a wealth of market synergies remain dormant as the burgeoning DeFi market waits to attract new users looking for the next place to realize their biggest ROI. Therefore, it becomes increasingly necessary for projects to bridge the gap between DeFi and holders of untapped capital.

How copy-trading can bring new users to DeFi

Copy trading has always been used as a way to educate new investors. It is a powerful tool that allows users to track the buying and selling of experienced traders in order to learn how the markets work. However, copy-trading, in its current form, exists primarily as a centralized service, which introduces several inefficiencies when applied to crypto trading.

A centralized copy platform often operates from the blockchain. By operating off-chain, these centralized platforms can alter their traders ‘stats and charge hidden fees that eat away at investors’ profits. In addition to these fees, platforms often require users to sign a contract for difference (CFD), which means that users do not own the crypto they are trading, but instead the platform keeps it for them.

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In this scenario, the intermediary acts as a custodian of information, makes huge profits, and if the intermediary goes bankrupt, investors have no way of recovering their assets. This goes against the principles of DeFi, where transparency is a given, revenues are redistributed to users within the community, and users retain custody of the crypto they own.

Therefore, the next step towards creating a copy trading platform that operates in accordance with the decentralized values ​​of cryptos should be one that utilizes DeFi power through a decentralized application (dApp).

Decentralized applications bring equity to finance

The origin of dApps can be traced back to the second generation blockchains that were developed after Bitcoin. These blockchains, like Ethereum and Binance Smart Chain (BSC), are considered complete Turing systems that can run programs like a computer.

The programs that run on these blockchains are called dApps, and they run on the same secure, transparent, and immutable properties that power blockchain technology. Blockchain dApps depend on smart contracts, lines of immutable code running if, and then logic that creates a level playing field for DeFis users.

This code cannot be changed by anyone once it is started, so the contract rules are the same for everyone. This code reliance means the DeFi community is protected against something like the Gamestop debacle, where a platform unfairly changed its terms and conditions without warning.

FNDZ boosts copy business with the power of dApps

Smart contracts and dApps may seem rather technical, but they can be equipped with user-friendly interfaces, so that anyone can use them to interact with DeFi. As a result, copy dApps like FNDZ, a fully decentralized copy platform, lower barriers to entry for DeFi through an easy-to-use platform connecting users with experienced traders.

FNDZ allows users to follow over 100 different traders handpicked for their ability to be successful in DeFi. Each trader sets their own transparent fees for monitoring their transactions (with a maximum management fee of 3% and a maximum performance fee of 30%), and data regarding a trader’s PNL (profit and loss) is accessible via the FNDZ trader’s dashboard.

Valentino Cremona, Chief Operations and Technology Officer at FNDZ, explains: Since NLP is verified by on-chain data, tracking the ups and downs of traders can be done with the highest degree of certainty. Investors who follow traders through FNDZ retain 100% custody of their assets while learning to trade on DeFis’ most trusted Decentralized Exchanges (DEX).

Robin Ubaghs, Head of Marketing and Growth at FNDZ adds: We are convinced that copy dApps like FNDZ could be the starting point for mass adoption of DeFis. A total of $ 700,000 in FNDZ tokens will be distributed to liquidity providers who help FNDZ create long-term value for its DeFi ecosystem.

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