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  • SOLUTIONS
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    • Decentralized PAMM
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  1. SOLUTIONS

Decentralized PAMM

PreviousInvestment DAONextDecentralized Trading Platform

Last updated 4 months ago

Decentralized Percentage Allocation Money Management (DPAMM) brings PAMM functionality to decentralized finance (DeFi), allowing for transparent and reliable trading through DEX integration, regulated by meticulously developed smart contracts. This product caters to both:

Experienced traders looking to attract capital under management in exchange for a share of the profits.

Investors seeking new and innovative earning opportunities.

Key Features

01 - Investment Pools with Predefined Parameters

  • Each PAMM account operates as a separate investment pool with predefined parameters, managed by the trader.

  • Funds can only be withdrawn at the end of each epoch (weekly), ensuring stability and predictability of capital flows for the trader.

02 - Flexible Parameter Configuration

Parameters can be tailored to create unique conditions for both traders and investors. Examples include:

  • Capital Multiplier: Pool Initiator sets the maximum ratio between total investor capital and trader's capital (e.g., with a ratio of 2, the total investor capital cannot exceed twice the trader's capital).

  • Loss Compensation: Traders can link their profit commission to loss compensation. For instance, with a 25% commission, a trader takes 25% of the investor's profits but compensates 25% of the losses from their funds.

  • Pool Stop-Loss: A pool-wide stop-loss can be configured to automatically close all positions and suspend trading when a specified drawdown level is reached.

  • Custom Offers: Investors can propose specific conditions under which they are willing to provide their capital for management.

03 - Additional Functionality

  • The Market Machina decentralized ecosystem may also enable traders to use leveraged margin trading and open short positions, significantly expanding trading strategies and profit potential.