AI-powered vault platform RoboNet is announcing its beta launch. RoboNet, built on Upshot’s AI infrastructure, allows capital providers to deposit into vaults managed by AI-powered strategies. This gives people access to much more advanced DeFi strategies by leveraging AI, going beyond what was previously achievable with traditional onchain yield-generating strategies.
The first phase of RoboNet will concentrate on market making for long-tail assets (RWAs, onchain gaming items, generative art, etc). Previously, the requirements for successful market making––including infrastructure, strategies, capital, and other business considerations––were prohibitively complex and resource-intensive. RoboNet automates this process with advanced ML models for predicting long-tail asset prices, driving liquidity to long-tail assets.
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RoboNet’s versatility caters to multiple DeFi participants:
- For vault strategists, RoboNet allows them to monetize proprietary pricing data by creating bespoke vaults.
- For capital providers, RoboNet offers passive access to automated AI-powered strategies.
- For traders, RoboNet powers more efficient markets for many different types of assets, especially long-tail assets.
For example, one vault strategy might involve users depositing ETH to form a portfolio of top crypto assets that maximizes the Sharpe ratio over a designated period. Another vault strategy might focus on market making for NFTs. Both strategies share a common goal: unlocking AI-powered DeFi strategies in specialized markets. To ensure the reliability of these strategies, RoboNet integrates the zkPredictor, which uses zkSNARKs to verify the output of ML models, developed in collaboration with Modulus Labs.
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As the quantity of financial assets increases, the need to attract liquidity and trading volume has gone up as well. The age of hyperfinancialization, in which everything that can be financialized will be, is fast approaching. The main beneficiaries of this rapid expansion will be the platforms that can accommodate more markets for more assets. That’s what RoboNet aims to support.
This expansion will lead to a challenge––the same issue that prediction markets, NFTs, and other long-tail markets have historically faced: attracting liquidity to an ever-growing set of niche asset categories. When a platform is reliant on liquidity providers who are highly specialized, well-capitalized, and limited in number, that becomes an increasingly complex problem to solve.
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AI-powered DeFi vaults revolutionize the process by decoupling capital provisioning from capital management. This innovation allows anyone to channel liquidity into markets, while letting advanced AI handle deployment––whether for market-making liquidity, trading, or anything else––significantly boosting capital flow into the increasingly hyperfinancialized future.
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