What Makes Precog Finance Stand Out From the Rest?

Precog Finance
8 min readSep 6, 2022
What Makes Precog Finance Stand Out From the Rest? | PRECOG FINANCE

Identity is no mere means of identification, rather, it is a delicate balance of similarities and differences that make something relatable, and yet at the same time, unique. It is a concept as old as civilization, and throughout the course of human history, countless people have gone to great lengths to stand out amongst the sea of people and mark their mark on the great canvas of human history.

However, uniqueness without any purpose is a superficial affair. Behind all the shapes and sizes, the colors and patterns, the materials and textures, lie a reason, or several, that help define an object. A story, a purpose, a clear understanding of what the world needs and how this thing, this being, can fulfill that role.

In the context of a marketplace of products, uniqueness doesn’t end at a brand identity level. There is some nuance to consider, however, as leveraging brand identity elements and resources to appeal to a particular lifestyle is a valid strategy that many companies adhere to. That being said, this is less of an effective strategy the more we enter the domain of software and finance, and more specifically, DeFi. When it comes to DeFi protocols, aesthetics only take you so far. At the end of the day, it’s the cold, hard numbers that count.

Features, performance, UI, updates, user support… etc, are a few of the many important factors to consider when building a DeFi protocol. In short, function takes priority over looks, but at the same time, looks serve the function of conveying the necessary information clearly and concisely and making your dApp easy and enjoyable to use.

Understanding Precog Finance’s Existence

DeFi is still a relatively young concept, with years ahead of it to mature into and cement itself as the go-to global marketplace for financial services and instruments. As such, it is to be expected that the current state of the market is far from perfect and that various problems make certain trading processes and strategies difficult, impossible, or even unprofitable.

Take for instance manual trading strategies. There are a couple of reasons why trying to perform these tasks manually in DeFi is inefficient, and they boil down to either having to compete against bots and algorithms — which outmatch individuals with their sheer speed and reach — or, interoperability; i.e. having to utilize bridges, wait for deposit and withdrawal confirmations from CEXes (centralized exchanges), or having to have different gas tokens for each blockchain network.

Speaking of gas fees, if a user were to try and carry out a series of trades on the Ethereum network — where DeFi is most prominent and thriving — they’d have to pay tens, hundreds, sometimes over a thousand dollars in cumulative gas fees, especially when the network is congested with lots of traffic. Considering congestion is at its highest during a bull run, this makes it the best and worst time for retail investors and traders, as they wouldn’t be able to make sufficient profits during an otherwise profitable period.

While sharding may fix this issue in the future, this is a problem millions of people will have to deal with for the foreseeable future. Pair that with the other reasons mentioned above, and you have a trading environment that is challenging to the average trader, to say the least.

While some projects exist to help alleviate some of these problems, none do so to a satisfying degree, at least according to the standards that we adhere to.

Problems With Existing Solutions

The automated bots available today for public use are, for the most part, inadequate and unreliable. This could be due to the strategies they use, which may oftentimes be too few to account for various market scenarios, or due to the inconsistency in profits as a result of an ever-shifting market versus a protocol that doesn’t update its parameters on a frequent-enough basis.

While not quite considered a direct competitor, trading groups do not satisfy either. The information and advice offered by these communities are unreliable at best, oftentimes outdated, and at worst, manipulative. A big-enough group could easily influence the price action of a small project, and the people behind these communities may utilize their followers to strengthen their positions.

While this makes automated DeFi protocols a much better option, existing products have shortcomings that either do not meet the needs of traders or match the capabilities and features of Sentient.

For instance, many of these protocols either require a one-time purchase or a subscription. While some do have trial periods, a few days or weeks isn’t enough time to thoroughly test out such a dApp; market cycles aren’t that short after all, and you won’t witness different market scenarios within such a minor time frame.

The free alternatives tend to be programs that oftentimes fall behind in the UI/UX department, and as a result, demand more concentration and effort from the user. In addition to having to learn to interact with these dApps, many of them also require a bit of know-how in regards to setting up parameters and strategies. This isn’t to say that they don’t come with presets, but the market isn’t static, and running a preset algorithm won’t be able to fully capture all the present opportunities, assuming it doesn’t work to the strategy’s detriment.

Then there’s the matter of the strategies themselves. If you have a good grasp on trading and are confident in writing your own strategies, that’s great! You’ve certainly found the best products for you. But if like most people, you aren’t a trading expert and you don’t have a close eye on the market, this works to your detriment. Even when it comes to the dApps with a good UI and fully automated processes, the strategies they use — assuming it’s more than one — may not be enough. They will also require frequent adjustments and tinkering, and some of these protocols don’t update their dApps as frequently as they should.

Other factors such as the number of DEXes and CEXes these dApps utilize often go unnoticed — but they shouldn’t. The more exchanges a protocol is connected to, the more opportunities it can seize. Another feature that is overlooked and not given enough importance is performance metrics. This gives traders deep insights into the performance of the algorithm and helps them better understand its capabilities under different circumstances.

Why Sentient

To summarize it perfectly, Sentient is what all these other protocols aren’t. It not only offers a unique set of features but also features that you won’t find together — or in part — anywhere else. It’s also free to use, and like any DeFi protocol, it can be interacted with by connecting your wallet and depositing assets. Its simplistic UI makes it friendly to traders of all backgrounds, and it is connected to dozens of CEXes and DEXes alike, expanding its reach and improving its odds of spotting opportunities before other algorithms do. Since it doesn’t need to be set up on the user’s PC, it trades 24/7; ensuring it doesn’t miss any opportunities, and earning profits as frequently as possible — a nearly passive income protocol.

Its strategies are many, and the ones utilized are those that have been proven to be effective, and are researched and approved by our team of experienced traders and analysts. This includes standard arbitrage, basis trading, triangular arbitrage strategy, and more!

These strategies are also adjusted according to a staggeringly-vast amount of continuously-generated trading data that is analyzed and processed by Sentient’s machine-learning artificial intelligence. AI is a buzzword oftentimes thrown around to stir up hype, but Sentient actually utilizes it in an area that not only matters but arguably requires it.

There is so much to observe and take note of that not even a dedicated team of human beings could truly process at a meaningful level. Unlike computers, we really aren’t wired to memorize and process at the capacity that allows us to effectively utilize vast amounts of data. Machine learning, on the other hand, is practically built for this very purpose, and is utilized in many areas of research including mathematics, physics, and biology to name just a few.

Sentient’s AI allows it to utilize this data to improve on its own by making constant adjustments to its parameters, and this is why it’s better than its competitors. Other protocols simply aren’t built to catch up to Sentient’s rate of evolution, especially when considering how Sentient isn’t limited to its own data and can be fed and upgraded by the experts in our team as well.

Furthermore, Sentient also allows users to earn partly in BTC, arguably the best DeFi asset in the crypto market — if not in the whole world. Those who like stacking Sats and earning in BTC would also be pleased to hear that Sentient also offers the means to earn BTC through staking.

Why Precog Finance

Sentient becomes all the more alluring when placing it in the context of the Precog Finance ecosystem, which includes dApps like Cerebral; a fully decentralized DeFi derivatives marketplace that allows all traders to define, create, and deploy synthetic assets. Read more about Cerebral in this article.

With a growing list of dApps, features, and ideas, we are constantly working on creating the ideal trading environment for all of DeFi — for Ethereum and beyond. To ensure our project endures the tests of time and becomes a staple in the world of DeFi by the time it is a multi-trillion dollar market, we’ve structured ourselves to adapt and evolve by taking into account the data and feedback generated throughout our journey.

As our team, partners, and collaborators grow, so does the project. We’ve laid down the blueprint for many of the branches Precog Finance will form as it grows, including Precog Ventures (the venture studio arm responsible for investing in and partnering with promising and complementary DeFi projects) and Precog Media (a content and IP-focused studio with the mission of helping creators with content monetization by utilizing the PCOG token). Here’s an article outlining one of the many collaborative opportunities Precog Finance has with other projects in Web3, with this one, in particular, pertaining to GameFi projects.

You’ve probably also read about PrecogU, a platform designed to counter the most serious threat to Web3: the increasing demand for talent as a result of rapid yet unsustainable growth. This will also serve as a means for ambitious individuals to find work in a new and expanding industry by arming them with the knowledge and expertise, as well as the tools to search for job opportunities.

We’ve also been audited by Certik, one of the leading blockchain security firms in Web3.0. As expressed in this blog post, we take security very seriously and outright refuse to cut any corners when it comes to protecting investors’ funds. The same cannot be said about other projects in an industry where multi-million dollar hacks take place on a near-monthly basis.

Precog Finance may have been shaped by the problems currently weighing down DeFi, but its springing into being stems from the will exerted due to the love and passion we have for decentralized finance and its potential to change the world. This is expressed in the work we do, the dApps we build, and the lengths we go to to ensure everything is as efficient and robust, and this is why you should choose Precog Finance.

Time moves slowly when you’re anticipating something exciting, so come join our communities until Sentient launches! We discuss updates, experiences, news, and more!




Precog Finance

Decentralized Derivatives trading ecosystem powered by AI, governed by community.