DeFi augmented by AI
The distinguishing features of Augmented Finance
Augmented Finance is an autonomous, non-custodial liquidity protocol for earning the highest interest on deposits while facilitating the borrowing of digital assets at the lowest rates to unlock the world of open financial applications.
The current generation of DeFi protocols (such as Aave, Compound) has brought programmability and automation. Augmented Finance focuses on intelligence as a core capability. Augmented Finance will be able to learn and evolve its behavior based on market activity.
In Aave/Compound, the interest rate is set in a two-step process. First, a certain utilization rate (% amount borrowed / amount deposited) is targeted. Then, a curve is hard-coded that aims to discourage utilization past the optimal level by sharply increasing the interest rate. The problem with this model is that the curve is fixed and cannot react to external market conditions.
Augmented Finance pools will still target an optimal utilization rate, but rather than doing so via a curve, we will allow interest rates to adapt dynamically to market conditions in real-time. Dynamic interest rates model is more responsive to changes in supply-demand conditions and thus achieves more stable utilization.
Augmented Finance brings together DeFi and AI to bring decentralized finance to a new level, powering the development of intelligent and trust-less financial services.
We are committed to improving the protocol on an ongoing basis. The principles in our decision-making are derived from our commitment to creating a sustainable decentralized financial system.
Last modified 11d ago
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