How Merlin helps active DeFi investors: comparison between individual strategies

Investing & trading in decentralised world is very dynamic. That is why it is extremely important to get the ‘alpha’ in time and use it in your trading & investing strategies to stay ahead of the curve. However, the current portfolio analytics options have a serious flaw — they don’t let you compare individual strategies.

Issue: Inability to compare individual strategies against others

This issue is closely tied to the absence of information about historical values. Modern DeFi investors don’t have an opportunity to compare the success of individual trading strategies against others.

Let’s take liquidity provision on Uniswap as an example. If you decide to provide liquidity to Uniswap, first of all none of the tools available on the market now will help you to understand fully how your strategy has performed over time with regard to fees claimed, impermanent loss and profit adjusted for NAV. Moreover, they also wouldn’t be able to backtest your chosen LP strategy compared to a similar strategy but on another DEX, let’s say Sushiswap.

In short it means that you are gambling with your chances to earn profits here.

Solution from Merlin

Merlin’s data provision means that strategies can be back-tested to allow future optimisation of investment returns versus other strategies. Different strategies can be compared with others over time. This allows for full coverage of your options, as well as planning and optimization for your future successful & profitable investment strategies.

You can view every step of your investment and all timestamped on the Merlin platform. Moreover, you’ll get exact information related to notional size, exchange rate and even the strategy used.

For the Uniswap liquidity transactions, investors will receive such information as range, ratio, claimable fees and liquidity.

All in all, Merlin provides you with the visual overview of all the information you need to analyse your portfolio performance and tweak your trading & investing strategies.

Exciting, isn’t it? Merlin will be relased in a mere couple of weeks. Meanwhile, we‘ll’ tell you more about different features that our smart wallet offers. Make sure to join our community, not to miss any news from us:

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Decentralised financial infrastructure for private markets

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