DynaSets: Noncustodial Dynamic Asset Sets (coming soon)
DynaSets explained.
The basic financial element managed by SingularityDAO is the Dynamic Asset Set (DynaSet). These are selections of utility tokens in a ratio that is dynamically balanced and optimized by AI.
The user holds shares of the DynaSet in a non-custodial fashion, while the Dynamic Asset Manager (DAM) is authorised to manage the ratio of assets held by the DynaSet via trustless smart contracts. The DAM will execute trades on Uniswap, the leading noncustodial decentralized exchange. The manager may be human, a fully automated system, or a mix of both, but given the general predisposition of the project toward AI, there will be a bias toward AI-managed DynaSets with sophisticated predictive agents. This is discussed in detail in the section on ‘AI portfolio management’.
This DAM will keep the assets in the DynaSet at the targeted ratio; for example if a simple DynaSet consists of 50% BTC and 50% ETH, and an investor deposits ETH, the DAM will convert half of that into WBTC on Uniswap, keeping the ratio of the basket at 50:50. See the section on The Forge below for more details on how this rebalancing works.
DynaSet tokens have another use: they can be staked or used to provide liquidity to farm governance tokens that are used to participate in the governance of SingularityDAO itself. This is explained in the paper on DAO governance.
As DynaSet holders are in control of their private keys, they can withdraw their funds at any time. However there is a cooldown period to prevent sudden withdrawals from throwing the basket out of balance and protect the wider community of investors. For example, a DynaSet might have a rule that a user can only withdraw 33% of the total funds in the basket at once. The DynaSet will release the excess only after a certain period, giving the manager time to balance the assets in the basket by executing transactions on Uniswap.
SingularityDAO will offer a handful of thematic DynaSets, with the community participating in the process and able to makes own proposal in the future. These DynaSets will be based on a select set of criteria.
Just to give the reader an idea, a potential list of Dynasets could include –
  • ETH and WBTC
  • Defi Pulse Index (DPI)
  • SingularityNET universe, including the AGI token
  • Launchpad tokens dynaset
  • NFT vault containing NFT related governance tokens.
DynaSet generation and inclusion criteria will be vetted by the DAO though a decision-making process described in the ‘DAO governance’ section of this document.
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