DynaSet Beta Update
Greetings Singularitarians,
What is SingularityDAO?
SingularityDAO is a DeFi Protocol designed to remove the stress of choosing which projects to invest in, the fear of market cycles, bears, downtrends and volatility, the hassle of constantly managing and updating your portfolio, all the troubles currently associated with Decentralized Finance and Cryptocurrency. Our team is at the forefront of DeFi 2.0 and are already pushing hard towards 3.0 — The brainchild of Dr. Ben Goertzel (CEO and Founder of SingularityNET) and Marcello Mari (CEO of SingularityDAO) SingularityDAO is taking the tools of traditional finance and rebuilding, reimagining and reinvigorating them for the blockchain and crypto currency space. With a full team of in house AI developers conducting cutting edge research and development in decentralized finance, we are creating advanced AI Algorithms capable of watching market sentiment, performing technical analysis, automatically rebalancing assets while also watching global economic events, politics, and many other factors all hosted on the SingularityNET Marketplace, to make well informed trading decisions in order to beat the market and generate profit. Our platform hosts a wide range of DeFi tools, but our focus today, our primary offering, non-custodial decentralized hedge funds, DynaSets.
DynaSets are not just your average high frequency trading bot “AI” which are really just simple algorithmic trading bots and not truly AI at all — this is the real deal, dynamically rebalanced, non-custodial, hedge fund like token sets enhanced by cutting edge Artificial Intelligence headed up by Chris Poulin, with experience in AI government research, and confidential collaborations with DeepMind that DynaSets will eventually leverage, alongside Ben Goertzel, the father of Sophia the Robot, who you can watch talk with Joe Rogan and Lex Fridman on their respective podcasts. This is DeFi meets AI from the big players.
What is a DynaSet?
A DynaSet is a dynamically managed set of assets. You can think of it somewhat like a basket of tokens automatically rebalanced by a combination of humans and AI, incredibly similar to a Hedge Fund in traditional finance.
For this example, let’s consider a DynaSet composed of USDC and BTC. If the indicators that our trading and AI team have set suggest to them that BTC is showing signs of a price increase, the trading team or ‘DAM’ (Dynamic Asset Manager) of Humans and/or Artificial Intelligences then exchanges USDC for BTC. They then wait for BTC to reach a target price point, before swapping it back into USDC thereby generating “Alpha”.
Performance Fees are taken from the Alpha generated and then rewarded to SingularityDAO members. SDAO Token Holders are considered DAO members, so to maximise your Alpha generation from DynaSets be sure to stock up on $SDAO.
Successful Beta Launch
On December 20th 2021 we successfully launched the first 3 DynaSets. This was a limited entry beta and our cap was reached immediately. In an absolutely amazing turnout from our community, our investors and interested influencers a total of 343 people were whitelisted to take part, dynBTC saw 88 people make contributions, while dynETH and dynSING had 108 and 147 contributions respectively, reaching a combined total of over 2.5million dollars. This shows what tremendous faith you all place in the product we have built and we cannot thank you enough for the belief and trust you have placed in our project.
DynaSet Statistics
Let’s take a look at how DynaSets are performing in their first few weeks of life. Dynas went live on December 20th, 2021. It has been 23 days since the first DynaSet trade was executed and the following are the results up to today, January 11th, 2022.
dynBTC vs BTC
  • dynBTC -0.5%
  • BTC -10.47%
  • DynaSet shows 9.97% better performance vs just holding Bitcoin
dynETH vs ETH
  • dynETH -1.68%
  • ETH -15%
  • DynaSet shows 13.32% better performance vs just holding Ethereum
  • The above chart shows that dynSING is outperforming certain underlying assets while currently slightly underperforming against a few others. We are still working on the best method to track overall performance of a multi-asset set and will share the exact figures as soon as possible.
As you can see, overall DynaSets in their current form are doing very well but of course with room for improvement, below we will go into more detail about the “hows” and “whys” of the current results and also take a look at some of the coming upgrades that will further enhance their alpha generation ability.
Recent Market Analysis
As I am sure you are all well aware, these weeks have not been the best for crypto markets in general as we have seen a steady decline across the board as red candle after red candle make their way into our charts. We thought it may be interesting to share some analysis from our end on what our signals and traders are seeing as a possible cause of this downtrend.
The recent crash in BTC and ETH price appears to be attributed to outsized leverage levels and funding rates which diverged from price in the derivatives markets. The hawkish fed statement from America alongside the electricity price rise and political instability of the world’s second largest producer of bitcoin, Kazakhstan, acted as a trigger point that sparked the unwind. The spot markets (so far) do not look affected and for the most part it seems to be a derivative based move.
It was this analysis that meant we moved the bulk of the majors DynaSets into cash prior to this, enabling us to protect the majority of assets in both dynETH and dynBTC. Rather than going 100% USDC, a little exposure is held so that in the event of a relief rally we have the option to perform a swing trade. Short term this does mean that slight loss is incurred, but in the long term, those swing trades add up and generate additional Alpha.
DynaSets are able to create profitable opportunities regardless of being in a bear, ranging or bull market on the condition that there is at least a little volatility so that we are able to execute swing trades. Unfortunately the last few weeks have seen a slow and steady drip down with very little chance to execute. Inevitably though, these opportunities will arise and we are primed and ready to capitalize on them. Remember, we are playing the long game.
Our very own dynSING is not performing quite so well at this time unfortunately. This is due to a number of factors. Of course the market conditions as explained above, but also in the first few weeks there were some execution issues that made accurately completing trades difficult. These issues have been ironed out by our dev team and things are now looking up in that regard. As with all new platforms, there were of course going to be small bugs discovered that did not show up in small scale testing but our devs have been quick to take action and we are confident that things are soon to turn around for dynSING.
Beta vs Coming Soon
Before sharing the current numbers and stats regarding our DynaSets with you, let’s take a moment to discuss the difference between these beta DynaSets and what you will be seeing live in 2022. Not all the features we mention here will be live immediately at the end of beta, but they are in testing and/or construction and will be added to DynaSets in the near future:
  • Updated Dashboard (making it far easier to monitor your DynaSets)
  • Algorithmic Automated Dynamic Rebalancing (testing is going VERY well)
  • Shorting (the ability to short the market is near, generating profits in downtrends)
  • Ownership of your DynaSet LP Tokens (trade, stake, hodl, redeem)
  • AI Algorithms on the SNET Marketplace (Dynas will make API calls to SNET)
  • DynaSets on other chains (maybe BSC, ADA, AVAX or others?)
  • More DynaSets
Closing thoughts
We will of course keep you all updated on DynaSet progress as the beta continues, for now though, don’t forget that we have two governance events coming up. First will be a vote on which stablecoins to use in our upcoming Stablecoin DynaSet followed shortly by a very important vote that will decide the future of our Launchpad and how exactly SDAO Token Holders and the wider crypto community will be able to earn allocations in launch events.
Make sure you keep an eye on all our social channels to stay up to date on all these things and more!
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