DeFi Reviews

Review SingularityDAO ($SDAO) – The Unique Layer 2 Noncustodial DeFi Solution From SingularityNET

SingularityDAO is a DeFi Protocol designed to maximize Alpha generation regardless of market trends.

https://youtu.be/5yP7mVTj1W0

What is SingularityDAO?

SingularityDAO is a decentralized, blockchain-based organization with the main goal of governing DynaSets, diversified baskets of cryptocurrency assets dynamically managed by AI. Voting power in SingularityDAO is granted by the SingularityDAO token (SDAO). SingularityDAO brings the sophisticated risk-management strategies of AI-managed funds to DeFi, using SingularityNET’s superior AI technology.

The DAO allows users to vote on proposals using liquid democracy, also known as delegative democracy. In effect, this means users can vote directly on proposals, or take a more hands-off approach by delegating their tokens’ voting power to someone else to vote for them.

The DAO will control, in a democratic way, which DynaSets are on the platform. It will also have the power to make changes to the economic variables and protocols of the platform or even amend governance protocols. Proposals can be tabled only by the SingularityDAO team at first, with this power being decentralized to the community of token holders progressively over 5 phases.

Outstanding features

What is the project trying to achieve?

SingularityDAO is a decentralized platform, governed by the SDAO token, tasked with governing DynaSets. DynaSets are diversified baskets of cryptocurrency assets dynamically managed by AI and curated by the protocol. SingularityDAO brings the financial sophistication of 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 manages single positions and market risk. Single asset exposures, even in high-quality projects, increase the risk for investors, but when they have bundled together diversification kicks in for better risk/ reward profiles.

SingularityDAO starts with this basket-of-assets model and adds Artificial Intelligence to optimize performance in complex markets. The architecture and economics of SingularityDAO don’t require Artificial Intelligence to function, but SingularityDAO is an outgrowth of SingularityNET, 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 operated 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 are associated with the DynaSets. These are used for farming yield by making loans to the DynaSets. 
  • The DAO layer, is decentralized governance driven by SDAO tokens. These tokens grant rights 2 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.

What is unique selling point?

DynaSets: Noncustodial Dynamic Asset Sets

The basic financial element managed by SingularityDAO is the Dynamic Asset Set (DynaSet). These are selections of utility tokens in a ratio that is dynamically balanced and optimized by AI.

The user holds shares of the DynaSet in a non-custodial fashion, while the Dynamic Asset Manager (DAM) is authorized to manage the ratio of assets held by the DynaSet via trustless smart contracts. The DAM will execute trades on Uniswap, the leading non-custodial decentralized exchange. The manager may be human, a fully automated system, or a mix of both, but given the general predisposition of the project toward AI, there will be a bias toward AI-managed DynaSets with sophisticated predictive agents.

This DAM will keep the assets in the DynaSet at the targeted ratio.

DynaSet tokens have another use: they can be stacked or used to provide liquidity to farm governance tokens that are used to participate in the governance of SingularityDAO itself. 

Liquidity Pool and Vault

By default, when you deposit crypto assets to a DynaSet, you receive DynaSet tokens in your wallet, representing your share of that DynaSet. You can leave them there and get exposure to the upside – the funds are accessible only to you – or you have the option of putting your DynaSet tokens into DEXes Liquidity Pools to earn fees and farm SDAO tokens. Optimizers can 12 borrow the crypto assets underlying these DynaSet tokens. In return, you receive shares of that Liquidity Pool, an LP token. Each DynaSet will have its own LP token.

There are a number of LP tokens representing the assets held in the Liquidity Pool. As the pool grows by earning interest, the value of each token goes up, benefiting the holders of LP tokens.

Optimizers

Optimizers borrow DynaSet tokens from the liquidity pool to perform financial operations with them, and later pay back the funds with interest, growing the Liquidity Pool. This benefits users who staked their DynaSet tokens and got LP tokens: each LP token is now worth that bit more.

When Optimizers perform ‘flash-loan’ strategies in which tokens are borrowed and returned in the same transaction, no collateralization is required and no interest is charged.

But many Optimizers will follow longer-term strategies (for example, some of our AI-based predictive modeling and reinforcement learning algorithms execute strategies over several weeks or months). In these cases, they must secure their loan with collateral and pay it back with interest. The percentage collateral required and the interest charged may be adapted in real-time based on system needs. The interest paid goes into the Liquidity Pool.

However, Optimizers who return more than they borrowed into the DynaSet Pool will receive Liquidity Token rewards, and also a higher reputation score, which will give them priority when multiple Optimizers are bidding to make transactions.

Decentralized short positions

All financial trades aim to buy low and sell high. The more familiar form (a ‘long’ position) involves first buying an asset first, and later selling it. A short position does the same thing backward: sells first and buys later. As we’re still aiming to buy low and sell high, this amounts to a bet that the value of an asset will fall.

To sell something that you haven’t bought yet requires someone else to temporarily loan it to you, or loan you collateral. SingularityDAO includes a DeFi version of this instrument: the liquidity pool lends crypto assets to DAMs so they can sell assets on credit, creating short positions in an entirely decentralized way. Then, when the DAM closes the short position, it pays the crypto it has borrowed back to the liquidity pool (at, they would hope, a new reduced price).

Rebalancing

DynaSets rebalance themselves over time by creating small arbitrage opportunities that incentivize traders to gradually adjust token balances and weights. As tokens are swapped, their weights move slightly toward the targets set by the DynaSet controller. This weight adjustment occurs at a maximum of once per hour in order to create small arbitrage opportunities over time that eventually bring the portfolio composition in line with the targets.

While this rebalancing process is not instantaneous, it is permissionless, it works for arbitrarily large DynaSets, it is generally more gas efficient and it does not assume that the DynaSet or its controller can access external liquidity to execute rebalances.

Re-weighing assets

DynaSets can be re-weighed to adjust the composition of the current desired tokens in the DynaSet. The current desired tokens are the underlying tokens in the DynaSet with a target weight greater than zero. Re-weighing a DynaSet adjusts the target weights of each asset but does not remove or add tokens and does not change the overall value of the DynaSet.

Weight Adjustment

In order to rebalance through internal swaps, DynaSets set a target weight () parameter for each asset. If the target weight is greater than the actual weight, the DynaSet takes steps to increase its balance of that token. If the target weight is lower than the actual weight, the DynaSet should decrease its balance in that token. Each DynaSet has a minimum update delay, which by default is 1 hour, and a weight change factor, which by default is 1%.

The Forge

Scenario One: 

Users deposit various assets in a somewhat random ratio, the ratio put in by the crowd of the users rather than determined by the DynaSet’s logic or AI:

Nothing will happen in the situation illustrated above because the deposits in the buffer have not yet hit the threshold of 10 ETH-equivalent. But when a little more comes in, the buffer could look like this:

The threshold has been met in this scenario, and rebalancing will be triggered, selling off the deposited assets in a few large transactions into the DynaSet’s target ratio.

Users who make their deposits to the DynaSet pre-mixed in the DynaSet’s ratio will receive a small bonus as a reward for saving the need for these transaction fees.

Roadmap 

Q1 2022 

● Official Governance Proposal for a Major Functional Voting Event on formalizing Voting Event Definitions after a year of feedback and interaction with the community. 

● Supporting campaigns of Delegate Representatives. 

● Launch of Governance Portal V3. 

● Launch of Sentiment Analysis Dashboard

Q2 2022 

● Start of Phase 2: Recipients of delegated votes can now create proposals if they meet the threshold. 

● 3 voting events on lowering, maintaining, or increasing the threshold for creating a proposal

Q3 2022 

● 3 voting events on lowering, maintaining, or increasing the threshold for creating a proposal.

Q4 2022

 ● 3 voting events on lowering, maintaining, or increasing the threshold for creating a proposal. 

Q1 2023

 ● 3 voting events on lowering, maintaining, or increasing the threshold for creating a proposal.

 Q2 2023 

● Start of Phase 3: anybody can create SingularityDAO Governance Proposals as long as the total of owned votes and votes delegated to you at least meet the minimum threshold

● Increasing the threshold or decreasing it up to the minimum threshold defined can be voted on by the community if they create such proposals. 

Q3 2023

● Increasing the threshold or decreasing it up to the minimum threshold defined can be voted on by the community if they create such proposals.

Q4 2023 

● Increasing the threshold or decreasing it up to the minimum threshold defined can be voted on by the community if they create such proposals. 

Q1 2024 

● Increasing the threshold or decreasing it up to the minimum threshold defined can be voted on by the community if they create such proposals.

Q2 2024 

● Start of Phase 4: the minimum threshold for creating proposals will be lowered again. 

● 3 voting events on lowering, maintaining, or increasing the threshold for creating a proposal. 

Q3 2024 

● 3 voting events on lowering, maintaining, or increasing the threshold for creating a proposal. 

Q4 2024 

● 3 voting events on lowering, maintaining, or increasing the threshold for creating a proposal. 

Q1 2025 

● 3 voting events on lowering, maintaining, or increasing the threshold for creating a proposal. 

Q2 2025 

● Start of Phase 5 (final phase): the minimum threshold for creating proposals will be lowered. 

● Increasing the threshold or decreasing it up to the minimum threshold defined can be voted on by the community if they create such proposals. 

● Veto Deactivation Voting Event is enabled. 

● In the case that the Veto Deactivation Voting Event passes, the Guardian of the Singularity Role will be a position up for election to the wider SDAO token holding community (including the possibility to grant SingularityDAO this role again).

Technical data

Key metrics 

$SDAO

  • Token Name: SingularityDAO
  • Ticker: SDAO
  • Blockchain: Ethereum.
  • Token Standard: ERC-20
  • Contract: Updating….
  • Token type: Utility
  • Total Supply: 100.000.000
  • Circulating Supply: 38.560.574.00 SDAO

Token allocation

Token release schedule

Release Schedule

Pricing

Vesting Details

Token use case

– To vote either for or Against or Blanco a SingularityDAO Governance Proposal through its Voting Function.

 – To create a SingularityDAO Governance Proposal. 

– To delegate one’s voting function to another wallet on the Ethereum blockchain

Token sale

SDAO token price : $1.62 (+3.84%)

 0.000539 ETH

 0.00003823 BTC

  • 24h Volume: $10,349,623
  • Market Cap: $65,264,509

Token sale: 6 May – 13 May

  • ICO Token Price: 1 SDAO = 0.20 USD
  • Fundraising Goal: 8,000,000 token
  • Available for Token Sale: 25%

How to own the token?

Updating…

Markets and Community

Community

SingularityDAO has crossed the mark of 29.700 Followers on Twitter.

Backers

Team/ Founders

Partners

Conclusion and analysis

SingularityDAO is a decentralized platform, governed by the SDAO token, tasked with governing DynaSets. DynaSets are diversified baskets of cryptocurrency assets dynamically managed by AI and curated by the protocol. SingularityDAO brings the financial sophistication of AI-managed funds to DeFi, deploying SingularityNET’s AI technology to navigate complex markets.

Find more information about SingularityDAO:

Website: https://singularitydao.ai/

Twitter: https://twitter.com/SingularityDao

Telegram: https://t.me/SingDAO

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

Elise

Coincu Ventures

Victor

Recent Posts

Best Cryptos with 1000X Potential: Qubetics Revolutionises Blockchain as Polkadot and Cosmos Shape the Future

Discover why Qubetics, Polkadot, and Cosmos are the best cryptos with 1000X potential, offering innovation,…

3 hours ago

Best Coins to Buy in December 2024: Qubetics Offer 630% ROI, Polkadot Delivers on Interoperability and Near Protocol’s Scalability is Talk of the Town

Explore the best coins to buy in December 2024—Qubetics with its thrilling presale, Polkadot’s interoperability,…

9 hours ago

Crypto Market Outlook 2025 Key Factors to Watch

The Crypto Market Outlook 2025 highlights key areas: stablecoin growth, tokenization, crypto ETFs, DeFi innovation,…

12 hours ago

Bitcoin Quantum Computing Threat Expected to Take Decades

The Bitcoin quantum computing threat is years away, but reserves already support post-quantum signatures via…

12 hours ago

Best New Meme Coins to Invest in Today: BTFD Coin Wows Investors with Unmissable Stage-7 Price Reversal as Book of Meme and Snek Crash

Don't miss BTFD Coin's Stage-7 presale dip! Find out why it's leading the pack of…

12 hours ago

Crypto Hedge Funds Banking Issues Persist Over Recent Years

A WSJ survey reveals crypto hedge funds banking issues over three years, with 120 out…

12 hours ago

This website uses cookies.