Copy Trading
Last updated
Last updated
Dexodus copy trading feature allows users to replicate the trading strategies of successful traders (Lead Traders). This guide provides detailed information on how both Lead Traders and Copy Traders (CT) can participate in the system, the requirements, and the tier structure.
To become a Lead Trader, traders must opt in to this role. There is no requirement for Lead Traders to stake DXG tokens. However, they must maintain a minimum balance to start trading as a Lead Trader. The minimum balance varies depending on the tier they are assigned to, ranging from $100 for the lowest tier to $100,000 for the highest tier. Once a trader meets the minimum balance requirement and accepts the role of a Lead Trader, they can begin trading immediately.
Copy Traders (CTs) who wish to follow a Lead Trader (LT) must have a minimum balance of veDXG. The required amount of veDXG depends on the tier of the Lead Trader and the aggregated volume of the copy traders currently following them. Notably, higher-tier Lead Traders require a lower balance of veDXG for Copy Traders to follow them for the same copy trader aggregated volume. This means that while high-tier Lead Traders have higher minimum balance requirements, they are more accessible to Copy Traders in terms of veDXG staking.
Lead Traders earn from the protocol’s benefits, which include the issuance of DXG tokens and USDC generated from taker and maker fees. Periodically, the total earnings are distributed among Lead Traders based on their weight in the Master Traders pool. This means that Lead Traders who generate more trading volume for their Copy Traders will receive a larger share of the earnings.
Copy Traders (CTs) need to stake DXG tokens to obtain veDXG. The amount of veDXG required depends on the tier of the Lead Trader (LT) they wish to copy and the copy trader volume following that Lead Trader. Higher-tier Lead Traders require a lower balance of veDXG for the same copy trader volume, making them more accessible despite having higher minimum balance requirements for their own accounts.
Copy Traders can browse and select a Master Trader to follow. It is essential to ensure that the staked amount of veDXG is sufficient to copy the selected Master Trader, as higher-tier Lead Traders require more veDXG.
Once a Master Trader is selected and the required veDXG is staked, Copy Traders can assign an amount of tokens to replicate the Lead Trader’s trades. Copy Traders must allocate a minimum amount of tokens to copy a Lead Trader. When the Lead Trader makes a trade, the Copy Trader's account automatically replicates the trade under the same conditions without incurring extra fees.
Copy Traders have the flexibility to review and edit their copied positions. They can stop copying trades and withdraw their funds to their dexodus account balance at any time. Additionally, Copy Traders can edit and close their positions without affecting the other Copy Traders or the Lead Trader. This ensures that each Copy Trader has full control over their investments and can make adjustments independently.
The tier system categorizes Lead Traders based on their trading volume and account balances. The system ensures that traders with different levels of activity and investment can participate effectively in the Copy Trading feature. Here is a detailed breakdown of the tier requirements:
| Tier | Minimal Balance Account | Aggregated Traded Volume (monthly) | veDXG Needed | Minimum Balance for the CT |
|---|---|---|---|---|
Tier 1 | 100 USD | - | 10*(CT^2) | 100 USD |
Tier 2 | 250 USD | 5000 | 10*(CT^1.9) | 200 USD |
Tier 3 | 1000 USD | 20000 | 10*(CT^1.8) | 300 USD |
Tier 4 | 7500 USD | 75000 | 10*(CT^1.6) | 400 USD |
Tier 5 | 100000 USD | 250000 | 10*(CT^1.2) | 500 USD |
Tier: Represents the level of the trader. Higher tiers indicate higher trading volume and account balance requirements.
Minimal Balance Account: The minimum account balance that a Lead Trader must maintain to be classified in the respective tier.
Aggregated Traded Volume (monthly): The total trading volume of all Copy Traders following a Lead Trader. This aggregated volume determines the tier classification.
veDXG Needed: The amount of veDXG tokens that a Copy Trader must stake to follow a Lead Trader in the respective tier. Higher-tier Lead Traders require lower veDXG for the same copy trader volume.
Minimum Balance for the CT: The minimum amount of funds that a Copy Trader must allocate to copy trades from a Lead Trader in the respective tier.
The Copy Trading feature on Dexodus offers an innovative and efficient way for users to leverage the expertise of successful traders. By categorizing Lead Traders and Copy Traders into tiers based on their trading activity and investment levels, we ensure a balanced and fair ecosystem where everyone can benefit.
For Lead Traders: Becoming a Lead Trader allows you to monetize your trading skills by earning DXG tokens and USDC from the protocol revenue. The more volume you trade on behalf of your Copy Traders, the greater your share of the earnings. This incentivizes you to develop and execute effective trading strategies, knowing that your success directly translates into financial rewards.
For Copy Traders: As a Copy Trader, you gain access to the strategies of top-performing traders without needing to actively manage your trades. By staking DXG to obtain veDXG, you can follow Lead Traders who align with your investment goals. The system's flexibility allows you to review, edit, and close positions at any time, giving you full control over your investments. Additionally, there are no extra fees for copying trades, making it a cost-effective way to potentially enhance your trading returns.
