Take DeFi blue chips Aave and Compound for example. By continuously scanning the market and historical data, Aave’s AI can make real-time adjustments that protect lenders from potential losses.
Similarly, Compound’s machine-learning algorithms analyze yield farming opportunities, advising users on strategies that align with current market trends.
Instead of relying solely on intuition or manual research, users benefit from advanced algorithms that can quickly adapt to market changes, reducing exposure to high-risk assets.
Elluminex, a new DeFi hub in the making, built on the TON blockchain, plans to use AI to help people manage risk in their portfolios.
AI-powered portfolio trackers offer real-time data, performance analysis, and market insights. Users can monitor their investments, track performance, and make informed decisions based on data.
This means that Elluminex users can get automated insights tailored to market conditions, helping them manage risk. It will help users to avoid common pitfalls, and even optimize trades based on predictive analytics.
For instance, if AI detects a sudden liquidity shift in a popular trading pair, it could adjust trading parameters in real time, offering users a better experience even during volatile periods.
Cryptocurrencies, even more so than traditional financial markets, move extremely quickly and experience a high level of volatility. If used correctly, this can lead to large profits. Keeping up with everything manually takes more time and effort than any one person can spare. So using AI means that risk management is going to be much easier as time goes on.
This will all help give investors increased confidence in participating in DeFi, while also maximizing their returns, and saving time and effort.
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