Amidst the volatility of the DeFi sector, AI is becoming a crucial tool for risk management, offering new approaches that can be valuable even to everyday investors.
The Role of AI in Risk Management
For professional traders and hedge funds, effective risk management is key to success. While ordinary investors may lack essential knowledge, the importance of this aspect is particularly noticeable in DeFi, which is full of volatility. AI provides solutions that can automatically monitor portfolios, analyze patterns, and adjust risks, proving especially useful for daily traders.
AI Use by Leading DeFi Projects
Examples like Aave and Compound demonstrate how AI can ensure safety in DeFi. Aave's AI analyzes market and historical data to make real-time adjustments, protecting lenders from potential losses. Compound uses machine learning algorithms to analyze yield farming opportunities, giving users strategies that align with current market conditions. The new Elluminex project, being developed on the TON blockchain, plans to use AI to manage users' portfolio risks. AI-powered portfolio trackers offer real-time data, performance analysis, and market insights, helping users avoid risks.
Future Prospects of AI in Cryptocurrencies
Cryptocurrencies, unlike traditional financial markets, are characterized by rapid changes and high volatility. Using AI can significantly ease risk management over time, increasing investors' confidence while optimizing results. This also helps save time and effort.
The use of AI in risk management within DeFi opens up new prospects for investors. This technology not only aids in protecting portfolios from unexpected changes but also allows maximizing profits while minimizing time and effort.
