‘DeFi hedge fund’ outperforms the market leveraging AI, expands offering

When asked about wealth inequality, few can say they clearly understand how severe this gap is. For a more precise visual, consider that Elon Musk, reportedly the richest man on Earth, has a network that exceeds the gross domestic products (GDPs) of countries like Portugal, Pakistan and Finland. 

According to the UN, even a small fraction of his wealth, $6 billion, would save at the very least 42 million people who are on the brink of salvation. Although Musk is just one example, his wealth indicates one thing, a very extreme wealth gap that currently exists, leading many to wonder about the reasons for this.

For one, the aphorism “the rich get richer, and the poor get poorer” often comes to mind. With access to sophisticated financial tools and other professional help, the rich often have an advantage in growing their existing profits. Unfortunately, these same tools are not readily available for the lower classes, illustrating just one of the reasons the wealthy get wealthier.

The cryptocurrency industry aims to level the playing field with fully decentralized organizations lowering any remaining barriers to entry. One of these projects is SingularityDAO, a platform that creates a new type of economy with some of the world’s more advanced decentralized artificial intelligence. The team has since released DynaSets.

“Currently available sophisticated financial tools are only accessible to the elite top 1%, further widening the wealth gap between the rich and the poor. Our mission is to make cutting-edge AI technology available through our DynaSets. The first three months of testing have been extremely promising. We managed to outperform the market by nearly 20%, and we can’t wait to share this amazing technology with as many people as possible,” SingularityDAO CEO Marcello Mari shares.

DynaSet open beta is now underway and available for contributions until April 11th. Following this release, DynaSets v1 will launch, including new features such as the ability to short the market and add leverage to trades.

Diversifying your holdings

DynaSets exist as a basket of tokens, similar to a hedge fund in traditional finance. However, this is where the differences end. Asset managers for a DynaSet are “dynamic,” meaning that these assets are managed by artificial intelligence (AI), a team of professional investors or a combination of the two operating in a non-custodial fashion. Therefore, investors still retain ownership over their tokens throughout the entire process, true to the spirit of decentralization. Each DynaSet is designed to handle millions of dollars within a single transaction, amounting to billions of dollars overall.

In practice, this project is broken out into phases, many of which hold similarities to bonded staking. The DynaSet will first undergo a launch phase, where investors can submit funds to the Forge. When this window closes, submitted tokens are “forged” into specified asset weights, enabling the DynaSet to begin trading.

DynaSets reveal another layer following the trade execution where the dynamic asset manager (DAM) will monitor price movements for certain criteria. When these signals are met, buy orders are placed with predetermined profit points. Smart contracts are then employed to analyze these decentralized exchanges (DEX) and liquidity pools, considering things like gas fees, slippage and market depth. It is when all these factors are met that trades can ensue.

If an investor decides to join a DynaSet following the launch, a rolling entry window also exists so users can stake their tokens within the Forge and wait for the next entry point. Since many new entrants may join at this stage, this is coincidentally when performance and management fees are also taken. Fees, although not finalized, are later split between the DAM and DAO community members as a part of their incentives.

Although these explanations simplify all the technologies and systems at play, their results cannot be overlooked. Since the inception of DynaSets, the offering has beaten “just holding” the underlying assets by 15-20%.

Investing takes on a new look

SingularityDAO has gone live following a token generation that raised $5 million. With strong foundations, the project has since launched staking, yield farming, LP, bridge, launchpad and now DynaSets.

As developments now enter the second quarter (Q2), the SingularityDAO is refocusing its efforts on a new user experience, which incorporates the complete look and feel of the platform, including v1.0 of DynaSets and v2.0 of the surrounding platform.