crypto ai: the next paradigm of DeFi

since the launch of chatgpt the public interest towards artificial intelligence has exploded exponentially. with millions of people transitioning to work with ai, the crypto and DeFi space has also seen an influx of ai projects and experts. however, most of these projects are not actual integrations between crypto and ai, but merely ai startups with an erc-20 token. aarnâ is one of the few DeFi projects that has integrated ai on a practical level and used ai to build a real competitive advantage.

at aarnâ we have built an in-house machine learning model that expands out into investment strategies and decision making frameworks for traders. this fusion of blockchain and ai gives us a unique positioning, achieving impressive returns exceeding 76% over an extensive twelve-month backtesting period. in this article we’re taking a deeper look at how our ai model works and how decentralization plays a big part in the future of ai.

aarnâ's predictive intelligence framework

at the core of the aarnâ protocol lies our tokenization platform and crypto ai engine. the intricately designed flagship ai model alpha [30/7] draws its decision making framework from extensive blockchain metadata and social sentiment analysis. through multiple iterations of refinement, this model has proven to possess robust predictive capabilities, offering invaluable insights for navigating the complexities of DeFi markets. these predictive outputs cater not only to individual users on aarnâ's engine dapp but also extend to crypto and DeFi experts within the aarnâ dao ecosystem. on a practical level the alpha [30/7] model makes predictions for long positions over 7-day periods. the model uses a 30-day lookback window to conduct the analysis based on on-chain and social sentiment data, and then proceeds to make predictions based on the results.

not only has the alpha [30/7] model yielded great results but it is also designed to measurably keep downside protection in mind for the investor, meaning if the model detects instability in the market, it will keep a market neutral position. in fact, over the past 12 months the model has remained market neutral for 30 out of 52 weeks, yet still gaining a 76,69% return as visualized below.

how decentralization and open-source principles tie in to crypto ai

in pursuit of a decentralized future for finance, we recognize the role of decentralized governance processes. however, innovation is challenging when coordinated in a decentralized manner, and most good ideas come from concentrated pools of talent with a high execution power. for example, our alpha [30/7] model is built in a fully centralized fashion, but our tokenization engine allows for the model to become decentralized and truly democratized, being accessible to everyone on-chain.

the commitment to progressive decentralization includes open-sourcing the feature set and making models available within the aarnâ dao. this encourages data scientists globally to contribute their expertise, constructing sophisticated models for alpha discovery and enhancing the ecosystem for individual users. this dedication to decentralization aligns with aarnâ's mission to democratize the DeFi space.

introducing the â_fi 800 series: aarnâ's crypto ai-driven structured vaults

representing the culmination of nearly two years of development, aarnâ introduces the algorithmic â_fi 800 series. the inaugural crypto ai structured product, â_fi 802, leverages algorithmic recommendations from the alpha [30/7] model. as aarnâ evolves, it will provide more opportunities for data scientists and ai protocols to contribute to aarnâ's infrastructure, designing future â_fi 800 vaults as part of the progressive decentralization process.

with a strong backtest track record, aarnâ's crypto ai engine, coupled with its decentralized crypto ai roadmap and tokenization platform, underlines its potential in creating intelligent and user-friendly DeFi asset management solutions.

join aarnâ in reshaping the DeFi narrative, leading the way in innovation, and disrupting traditional finance through the synergy of human and machine intelligence. explore our vaults here: www.aarna.finance/afi

about aarnâ

aarnâ is an advanced DeFi asset management platform, designed at the intersection of AI and DeFi, to help users manage their digital assets lifecycle.