Decentralized financing has become one of the fastest growing segments in the cryptocurrency ecosystem in the last year. At the time of writing, the total book value of DeFi has exceeded $ 100 billion. Despite the impressive numbers, decentralized financing is still in its early stages of development, so the question arises: what will happen next with this revolutionary financial technology?

The next frontier is likely to open up new opportunities for artificial intelligence (AI) and machine learning with decentralized economics to create DeFi intelligence.

DeFi intelligence in nature
Today, many companies are at the forefront of the integration of AI and machine learning with blockchain, focusing on automation and working with a vision that makes smart features a key feature. Interoperability is important for creating fully equipped smart DeFi solutions. They have created a network of independent financial agents who strive to provide the Web 3.0 ecosystem with an efficient, reliable and future-proof infrastructure and tools for building a decentralized smart digital economy.

Related topics: How NFT, DeFi and Web 3.0 are related

Shopify Capital announced plans this spring to use machine learning and artificial intelligence to provide financing to qualified salespeople based on their past sales history and store performance. Similarly, a new DeFi project called SingularityDAO was developed by SingularityNET, which decentralizes the AI ​​marketplace, which plans to manage dynamic token pools, implement predictive marketing, and implement predictive modeling-based security strategies.

DeFi Intelligence can revolutionize DeFi protocols by adding an extra layer of data that takes the market to a new level of efficiency and enables smart and decentralized asset management tools.

DeFi intelligence and financial freedom
The need for an accessible and transparent financial system becomes increasingly clear as DeFi replaces older systems, highlighting failures in traditional key structures and providing a viable alternative to global economic freedom. Unlike its centralized counterparts, DeFi has proven to increase global financial freedom by allowing members to have full control over funds at any time and interact without intermediaries.

Related topics: DeFi will revolutionize the world of traditional economics

Defi’s development towards automation is likely to create powerful news services that will help make financial transactions and services easier and more accessible. These changes will allow the use of a new set of services, including:

Derivatives of artificial intelligence that will significantly improve the investment process and provide liquidity to peer-to-peer financial markets. Improved risk reduction will also be an added benefit.
Artificial intelligence mitigates risk on decentralized exchanges that will evaluate trading positions and secure markets accordingly.
User registration. The banking sector is currently being transformed with artificial intelligence technology, which enables faster and more efficient identification of users’ risks. Without compromising the user’s privacy too much, the same technology can be used on DApps to provide more sophisticated customer steps and more advanced incentive mechanisms. At the very least, the user can access higher liquidity gains or other exclusive product / service features.
Intelligence and DeFi compatibility
Interoperability allows funds to move freely across different blockchain platforms such as Bitcoin, Ethereum, Binance Smart Chain and others, generating liquidity and creating a more convenient environment for mass adoption of decentralized financing. Through the use of artificial intelligence, interoperability will become a core capability in the next generation of DeFi protocols.

Liquidity transfer can be automated again using more complex information in real time based on the analysis of thousands of data points. This will be useful for price discovery and can even out volatility and simplify risk management on blockchains.

Related: Blockchain interoperability: the big picture

If you think of an automated market maker or AMM as a robot that always wanted to quote you between two assets, apps like Uniswap or Balancer are clearly on the right track. But how can we take this step forward?

Source: CoinTelegraph