Defi project SingularityDAO, which spun out from SingularityNET, has secured $2.7 million in private funding to develop an AI-based platform for decentralized finance. A host of known names in the blockchain venture capital space participated, with AlphaBit leading the round and Genesis Block Ventures participating.
Other firms to get in on the act include SMO Capital, QCP Capital, AU21, Jun Capital, Magnus Capital, and Moonwhale Ventures.
Creating Smarter Defi Solutions
Blockchain marketplace SingularityNET was founded by Dr. Ben Goertzel, one of the leading AI researchers in the industry. He'll be bringing his expertise to SingularityDAO to explore ways in which artificial intelligence can be used to drive greater efficiencies and profit optimization opportunities.
Aided by AI, SingularityDAO offers dynamically managed portfolios that can auto-adjust to incorporate changing market circumstances and new yield generating opportunities. It's also tackling onchain trading with the goal of boosting DEX liquidity, and is actively developing predictive models for asset management.
There are three primary components to SingularityDAO's tech stack:
DynaSets. These dynamically managed collections of utility tokens operate akin to a tradfi hedge fund.
Liquidity pools linked to DynaSets that are used for yield farming through loans made to DynaSets.
A DAO layer where governance matters are determined by SingDAO token holders.
VCs Do Defi
Venture capital has been pouring into the defi space this year as investors have seen the massive potential for decentralized finance to disrupt age-old processes and revolutionize the way in which companies are run, as well as accelerating the pace at which new technology can be brought to market. While not all of the up-and-coming defi startups will last the course, VCs have reasoned that if even a handful of their investments go on to achieve great things, their endeavors will have been worthwhile.
For enterprising defi projects, meanwhile, securing private funding provides a means of bootstrapping initial operations, and enabling them to go-to market with essential team members and marketing strategy in place. Many of these defi projects have plans to transition to a community controlled model over time, with a DAO being used to orchestrate funding requests, treasury management, and voting over protocol upgrades.
"SingularityDAO has the potential to leverage AI technology to address the challenges of low liquidity and price volatility when purchasing small to mid-cap tokens in the defi ecosystem," said Leslie Tam, Co-founder and Partner at GBV. "GBV is excited to have participated in the fundraising to support Marcello and the team at SingularityDAO."
Everyone's Making DAOs
The success of decentralized autonomous organizations (DAOs) can be attributed to a number of factors. For one thing, the failure of the original DAO that launched on Ethereum ("The DAO") has long since receded, and subsequent projects modeled in this style have enjoyed significantly greater success. In addition to being advantageous from a legal perspective, a DAO can effectively incentivize greater community participation and drive behaviors that achieve optimal outcomes.
From a tokenomic perspective, DAOs also allow for a number of ways in which economic behaviors can be driven that will accrue value to the protocol. SingularityDAO's SingDAO token will be used to achieve this within the AI-powered defi solution that Dr. Ben Goertzel and his team are now building.