SingularityDAO is a decentralised platform, governed by the SDAO token, tasked with governing DynaSets. DynaSets are diversified baskets of cryptocurrency assets dynamically managed by A Iand curated by the protocol.
SingularityDAO brings the financial sophistication AI-managed funds to DeFi, deploying SingularityNET’s AI technology to navigate complex markets. Hedge funds actively take positions on a multitude of financial instruments, allowing investors to generate alpha returns by selecting higher assets, diversifying the risk and taking market neutral positions when risk increases.
Similarly, DynaSets take exposure to cryptocurrency assets and actively manage single positions and market risk. Single asset exposures, even in high quality projects, increase the risk for investors, but when they are bundled together diversification kicks in for better risk/ reward profiles. SingularityDAO starts with this basket-of-assets model and adds Artificial Intelligence to optimise performance in complex markets.
The architecture and economics of SingularityDAO don’t require Artificial Intelligence to function, but SingularityDAO is an outgrowth ofSingularityNET, an AI-networking project building an interconnected network of AI agents. SingularityDAO uses sophisticated AI to dynamically manage portfolios, execute efficient asset allocations and market making functions to provide liquidity for high-quality tokens on DEXs, and predictively model asset management strategies.
The protocol is democratically governed as a Decentralized Autonomous Organization (DAO) with a governance token called the SDAO token. This gives a blockchain architecture consisting of three layers:
- A layer of DynaSets, the basic building block. These are dynamically managed collections of utility tokens, much like Hedge Funds in traditional finance. Each DynaSet is managed by a DynaSet Asset Manager (DAM), which can be a human, but will more likely be an AI or a combination of the two.
- Liquidity pools associated with the DynaSets. These are used for farming yield by making loans to the DynaSets.
- The DAO layer, decentralised governance driven by SDAO tokens. These tokens grant rights to vote on proposed changes to the platform. Users can earn SDAO tokens by providing liquidity to DynaSets on DEXes. This creates a democratically-governed infrastructure of DeFi portfolios driven and optimized by SingularityNET’s AI.