The “DeFi hedge fund” is outperforming the market by leveraging AI and expanding its offering

When asked about wealth inequality, few can say they fully understand just how severe this gap is. For a more accurate account, consider that Elon Musk, reportedly the richest man in the world, has a network that exceeds the gross domestic product (GDP) of countries like Portugal, Pakistan, and Finland.

According to the United Nations, even a small fraction of his fortune, $6 billion, would save at least 42 million people on the brink of starvation. While Musk is just one example, his net worth points to one thing, and that’s a very extreme wealth gap that currently exists, leading many to wonder as to the reasons behind it.

For one thing, 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 edge in increasing their existing profits. Unfortunately, the same tools aren’t readily available to the lower classes, which is just one of the reasons the rich get richer.

The cryptocurrency industry aims to level the playing field with fully decentralized organizations lowering any remaining barriers to entry. One such project is SingularityDAO, a platform that is creating a new kind of economy using some of the most advanced decentralized artificial intelligence in the world. The team has since released DynaSets.

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

DynaSet Open Beta is now underway and available for contributions until April 11th. After this release, DynaSets v1 will be launched, including new features such as the ability to short the market and leverage trades.

Diversify 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 both, working in a non-custodial manner. Therefore, investors continue to retain ownership of their tokens throughout the process, true to the spirit of decentralization. Each DynaSet is designed to process millions of dollars in a single transaction, totaling billions of dollars.

In practice, this project is divided into phases, many of which bear similarities to bonded staking. The DynaSet will initially go through a launch phase during which investors can submit funds to Forge. When this window closes, the submitted tokens will be “forged” into specific asset weights, allowing DynaSet to start trading.

DynaSets show another level after trade execution, where the Dynamic Asset Manager (DAM) monitors price movements against certain criteria. When these signals are met, buy orders are placed with fixed profit points. Smart contracts are then deployed to analyze these decentralized exchanges (DEX) and liquidity pools, taking into account things like gas fees, slippage and market depth. When all of these factors are met, trades can take place.

After launch, if an investor decides to join a DynaSet, there is also a rolling entry window for users to stake their tokens within the forge and wait for the next entry point. As there may be many new entrants at this stage, performance and management fees also happen to be charged at this time. The fees, while not finalized, will later be shared between DAM and DAO community members as part of their incentives.

More insights into Singularitydao here

Although these explanations simplify all the technologies and systems involved, their results cannot be overlooked. Since the launch of DynaSets, the offering has outperformed the “hold only” of the underlying assets by 15-20%.

Investing gets a new face

SingularityDAO has gone live after a token generation that raised $5 million. With a strong foundation, the project has since launched Staking, Yield Farming, LP, Bridge, Launchpad and now DynaSets.

With developments now entering the second quarter (Q2), SingularityDAO is refocusing its efforts towards a new user experience that includes the full face of the platform, including v1.0 of DynaSets and v2.0 of the surrounding platform.

Disclaimer. Cointelegraph does not endorse any content or products on this site. While we aim to provide you with all the important information we are able to obtain, readers should do their own research before taking any action regarding the company and take full responsibility for their decisions, and this article can nor should it be considered investment advice.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers