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.
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:
This creates a democratically-governed infrastructure of DeFi portfolios driven and optimized by SingularityNET’s AI.
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.
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 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.
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).
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.
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.
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%.
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.
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We found 3 people related to sdao-singularitydao, include CEO & Co-Founder Marcello Mari
We found 10 organizations related to SingularityDAO has QCP Capital, MANTRA DAO, DeFi Capital, SMO Capital , Moonwhale Ventures, AU21 Capital, Magnus Capital, singurlarityNET, Alphabit Fund, GBV Capital
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