DynaSet: SingularityDAO is the most important DeFi project right now!
SingularityNet’s ecosystem is rapidly expanding. Spinoff projects are utilizing Singularity’s library to develop efficient AI powered solutions. SingularityDAO is the first sovereign cryptocurrency project born out of SingularityNet. Ben and his team are definitely smashing it! And FYI, this is not even a sponsored post!
Not sure I sound as hyped as I really am! It’s impressive what the SingularityNet team is doing. Backed by a plausible management and an ever-working development team, it is one of the few cryptocurrency projects whose growth has been purely organic. No hypes, no extravagant marketing but they have continued to grow exponentially as investors realize the utility of the frank solutions they are developing. With the scheduled launch on Cardano as its first smart contract project, things are set to get more interesting for the whole SingularityNet ecosystem!
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Since the introduction of decentralized exchange and lending, Automated Market Making (AMM), decentralized staking and liquidity mining; DeFi hasn’t really developed significantly. New projects simply reinvent the wheel and throw in new tokens into an already clumped cryptocurrency space. Thousands of similar DeFi projects, few unique features. Well, these platforms’ UI look a bit different and the APR are relatively different; but these things apart, they are simply a fork of each other. PancakeSwap’s ‘flippy sound’ still persists on some Binance SmartChain ‘swap’ platforms…lol.
On April, SingularityDAO announced that it had raised $2.7 million in its first funding round to develop what I’d call the ‘most’ important technological addition to the DeFi space. SingularityDAO is merging AI and DeFi technologies in an interesting way.
Call it ‘an asset management protocol powered by Artificial Intelligence’ or ‘an AI controlled asset pool’. SDAO’s Dynamic Asset Set (DynaSet) brings so much to DeFi. The DynaSet is the building block of SingularityDAO’s technology. It features a diversified basket of cryptocurrency assets dynamically rebalanced and reweighted by AI and curated by the protocol.
Majority of cryptocurrency investors prefer to split their funds across a couple of crypto assets. Personally, this is me too. For several reasons, a diversified portfolio is a common practice in the cryptocurrency space. Why pick one when you can actually get as many as possible? Well, this comes with its own demerits; and merits too.
Portfolio management gets tougher as investors diversify their holdings. Volatility epitomized by the cryptocurrency market further complicates management of a diversified portfolio. Investors take up the tedious task of varying these assets according to market conditions. Moving back and forth between stable assets and volatile assets during unfavorable and favorable market conditions, respectively; investors not only get over-worked, they face a risk of losing tangible percentage of their investments to the tides.
Each DynaSet is a smart contract on the Ethereum blockchain. These smart contracts hold diversified crypto assets. You hold the keys of your DynaSet tokens, and a robot manager that we call a Dynamic Asset Manager (or DAM) holds the private key of the smart contract, allowing it to trade the assets.
Marcello Mari, SDAO CEO
DynaSet presents a revolutionary way of managing assets, an automated asset management system. Like the popular liquidity pool, asset owners deposit their assets into a DynaSet, owners of these assets receive DynaSet token(s) which represent their stake in the DynaSet. Depositing assets into the DynaSet, investors enter a smart contract agreement which authorizes the Dynamic Asset Manager (DAM) to manage their assets. Like the traditional hedge fund, the Dynamic Asset Manager varies the ratio of assets held in the Dynaset according to market conditions to maximize or at least, preserve profits and minimize losses. The Dynamic Asset Manager is automated, powered by Artificial Intelligence protocols and its efficiency enhanced by personnel specialized in cryptocurrency trading.
DynaSet tokens can be staked on the SingularityDAO platform to mine SDAO tokens. SDAO mining using DynaSet tokens presents, Stakeholders in the DynaSet an opportunity to earn governance tokens used for voting on proposals on the platform.
SingularityDAO is adding an important piece to DeFi, a technology which definitely finds use in mainstream finance. Just like its parent project, it is equipped with a competent team capable of delivering this technology in the best possible way. Excited and hyped for this one!
Images obtained form SigularityDAO’s homepage