An asset Management DAO driven by a Crowd-sourced AI through a Data Science competition.

Username

Davide Capoti

Grant Description

Yiedl has a community of +500 Data Scientists. We work to solve the cryptocurrency market through a blockchain-based machine learning competition. The company is building an asset management DAO driven by a Community of Data Scientists and offering investment products (Crypto Vaults) that are open, fair, and the smartest possible. With the synthetic integration, we could offer this AI-crowd-sourced Intelligence to anyone interested in investing in crypto. With synthetic perpetual derivatives, we will be able to create decentralized Vaults (long, short, market neutral, long/short) capable of offering traders extremely sophisticated investment choices while maintaining the security offered by smart contract wallets and the transparency of blockchain protocols. In the future, users would be directly able to hire one or multiple Data Scientists (ranked on a list of parameters) and create their own meta-model to use for their customized asset allocation.

Overview

Yiedl Project: Yiedl is an innovative project focused on revolutionizing Asset management through a combination of crowd-sourced artificial intelligence (AI), Web3 infrastructure, and community-driven governance (DAO). Problem/Opportunity: Yiedl aims to address the limitations of “smart” investment products offered in the crypto space, solving the misuse of AI and boosting the mass adoption of products that are both smart and decentralized. Let’s go deep. The infrastructure of an investment fund is based on technical infrastructure and on the interaction between 2 actors: a) the Fund manager who creates the investment strategies/financial products and b) the investor who buys/sells the financial products offered. However, we do not believe that a single fund manager can solve the market, as this is a data science problem and must be addressed as such. We replace the fund manager with a blockchain-based data science tournament, in which Data Scientists from all over the world (predictors) send predictions (on which they stake tokens) derived from their machine learning models and which are submitted and stored in IPFS, and later (1 week later) decrypted and ranked based on their actual performance compared to the initial prediction. Good predictions are paid (stake reward=stakeperformance), and bad predictions are penalized (reward=stake performance). All the predictions then fuel to into a weighted meta-model which will be used for the asset allocation of the various vaults offered. b) We provide the investors with decentralized Vaults, based on token shares (also exchangeable on a secondary market) and driven by the distributed intelligence mentioned above. Finally, the infrastructure must be decentralized and the organization must have a form of DAO so that interests between shareholders, investors, and data scientists are aligned with the common interest.

Basically, we dispute homemade approaches where “wanna-be” traders, “guru influencers” or “alleged asset managers” make investment advice or even build products (trading bots) without any kind of competencies behind them. The crypto world is full of trading bots, or platforms offering the best trading strategies, however, any of them have any kind of understanding of what a “data science problem is”, and what is the correct approach to solve the market. Compared with competitors, projects like DHEDGE on Synthetics, while offering dex vaults, lack in sophistication, because they offer users to engage with anyone who can describe himself as “a fund manager”. Yiedl approach that relies on a Data Science community is scientific and data-driven and will delivers the best results in the long run.

On Yiedl roadmap, we have also scheduled a feature where users will also have the unique capability to select one or multiple data scientists from a public list, each ranked by specific performance metrics (performance, max drawdown, volatility, sortino ratio, etc). This empowers users to harness the collective expertise of these data scientists and construct a customized metamodel. This metamodel serves as a powerful tool for crafting personalized asset allocations, allowing users to benefit from the collective intelligence and diverse strategies of these selected data scientists. It's a feature designed to enhance user investment choices by tapping into the wisdom of a community of data science experts and creating a sophisticated, customized approach to asset allocation.

Why build on Synthetics? Because it’s the most advanced and decentralized perpetual protocol ever created. It gives us the ability to solve many issues in a single place. Firstly, Synthetics is based on smart contract infrastructure. And platforms like Kventa and Polynomial offer us integration with smart contracts instead of a centralized solution, This specific approach solves the issue of the custodian. Never FTX case again. While, other protocols, like DYDX, don’t allow us to have a non-custodian solution to drive the asset allocation of the users missing the point where asset management DAO offers clients a solution smart and safe in a unique place. Secondly, the liquidity infrastructure of synthetics is much smarter and scalable, with slippage potentially reduced to zero. Last but not least, Optimism integration helps us to solve fees for final users, whereas other L1 or L@ have expensive bridge costs or time delays that make the client’s onboarding painful.

Value to Synthetix

Yiedl's approach offers several key benefits for the Synthetic ecosystem:

Inclusivity: Yiedl's platform allows a wide range of investors, regardless of their expertise, to access advanced asset management tools. It levels the playing field by providing an opportunity for everyday investors to benefit from data-driven strategies that were traditionally accessible only to institutional investors. This increases users that want to engage with sophisticated investment products, increasing the awareness of the protocol able to attract a community of Data Scientists in it. Also, Vault’s Portfolio rotations are weekly, so trading fees generated for the entire protocol and holders could be very high. And yield could accept only stablecoin (sUSD) or SNX to onboard boosting the value of your tokens protocol. Collective Intelligence: By harnessing the power of crowd-sourced AI and community-driven governance, Yiedl taps into the collective intelligence of a global network of data scientists. This approach aims to provide more accurate and effective investment decisions. Synthetic will be the first and only protocol to have a community of Data Scientists working on it. There are no other companies proposing what we do to asset management. Portfolio diversification: Yiedl's AI-driven approach can help investors build diversified portfolios that reflect their investment goals and risk tolerance, potentially improving the overall risk-return profile of their investments. We can offer long-only, short-only, market-neutral, and long/short approaches. Global Access: Yiedl aims to be a global platform, giving investors worldwide the opportunity to participate and benefit from its innovative approach to asset management. We are also implementing an AI competition on the stock market, to be ready to offer Stock Vault when synthetic protocol would be eventually ready to issue them.

Project Implementation Plan

This entire roadmap will take mostly 60 days with 5 people working full days on it considering that the project has been partially developed during the lifetime of the Yiedl project. Considering it started on 09/10/2023, is expected to be completed on 4/12/2023 of December. However, this is a high-level overview, and a more technical implementation could be eventually detailed in further steps.

Design System & Write Smart Contract

1. High-level Design of System: This activity involves creating a top-level blueprint or plan for the entire system, outlining its architecture, components, and how they will interact. (Estimated time: 7 days)
2. Write Smart Contract: Writing smart contracts involves coding the self-executing agreements that run on blockchain platforms. These contracts specify the rules and conditions under which any transactions of the Yiedl architecture can occur. (Estimated time: 5 days)
3. Test Smart Contract: Before deployment, smart contracts need rigorous internal testing activities to ensure they function as intended and are free from vulnerabilities or bugs. (Estimated time: 7 days)
4. Write Python Library: This activity involves developing a library in the Python programming language, which can be used for handling the automatic scripts we need to run the operational activities, including the weekly portfolio rotation (Estimated time: 3 days)
5. Internal Revisions: This phase focuses on reviewing and revising the work done within the team to ensure it aligns with project requirements, quality standards, and design specifications. (Estimated time: 3 days)
6. Smart Contract Documentation: Documenting smart contracts is essential for understanding their functionality, usage, and parameters. It provides a reference for developers and users. (Estimated time: 3 days)
7. Audit (Initial): Initial auditing involves a comprehensive review of smart contracts by an external party to identify potential vulnerabilities, security risks, and compliance issues. (Estimated time: 6 days)
8. Revise Smart Contracts: Based on the findings of the initial audit, this activity involves making necessary revisions and improvements to the smart contracts to address any identified issues. (Estimated time: 3 days)
9. Audit (Revisions): After revising the smart contracts, they are audited again to ensure that the identified issues have been resolved and that the contracts are now secure and functional. (Estimated time: 7 days) These activities are crucial steps in the development and deployment of blockchain-based systems and smart contracts.

Automated Scripts:

1. Operational: Creation of automatic scripts that perform tasks without manual intervention. In our case, the term "Operational" refers to activities related to the day-to-day and weekly functioning of the entire system. It involves tasks like processing the onboarding of the users, monitoring the performance of the vaults, and ensuring that everything runs smoothly and efficiently. (Estimated time: 3 days)
2. Weekly Rotation: Weekly rotation implies the weekly portfolio asset rotation based on the result of the data science competition. (Stake-weighted meta model) (Estimated time: 6 days)
3. Internal Revisions: Internal revisions involve reviewing and making changes or improvements to trading processes, or system execution. This activity helps ensure that everything aligns with the latest standards, requirements, and best practices and it’s ready to be deployed. (Estimated time: 7 days) These activities play essential roles in maintaining the functionality, security, and efficiency of various processes and systems.

FRONT- END CHANGES

It refers to modifications made to the user interface and user experience. These changes may include design updates, layout adjustments, and the addition of new features to enhance the user's interaction with the new system.

1. Changes to Website to Match New System: This activity involves adjusting a website to ensure it aligns with the requirements and functionality of a new system. It may include integrating new features, updating content, and ensuring a seamless transition from the old system to the new one. (Estimated time: 2 days)
2. Publish Testnet Version for Internal Testing: Publishing a testnet version means making a replica of the system or software available for internal testing on a test network. This allows Yiedl team and community members to evaluate the system's performance, identify issues, and make improvements before deploying it in a live environment. (Estimated time: 7 days)
3. Internal Revisions: After the testnet phase, the final internal revisions involve reviewing and revising processes, and systems to ensure they align with current standards and requirements. This activity aims to improve efficiency and quality within the internal operations of the organization. (Estimated time: 3 days)
4. Update Documentation: Updating documentation entails revising and enhancing written materials, manuals, or guides related to the entire new infrastructure. This ensures that the documentation remains accurate and up to date-, making it a valuable resource for users, developers, and stakeholders. (Estimated time: 10 days)

These activities are essential for maintaining and improving software systems, websites, and internal processes to meet evolving needs and standards.

Additional Information

Rocket Capital Inv. (the company behind the Yiedl project ) is a Singapore-based company. https://www.yiedl.ai/ In 2021, raised 1,1M USD : https://www.crunchbase.com/organization/rocket-capital-investment In 2022 entered "Tenity Accelerator" backed by UBS, SIX, Julius Baer, Generali, Franklyn Templeton. In 2022, raised $200K GRANT from Google Startup for Cloud computing solution In 2023, raised S$300K GRANT from the Monetary Authority of Singapore for an Artificial Intelligence application tool (Making predictions with external machine learning models preserving intellectual property and usage rights") https://github.com/rocketcapital-ai/ip_preserving_ml_predictions 2023 $1M SUSD AUM is already committed to the new platform launch

For any contact: Davide Capoti davide.capoti@rocketcapital.ai or info@rocketcapital.ai

Documentation: https://docs.rocketcapital.ai/rci-competition/ https://docs.rocketcapital.ai/competition-dapp/overviews/competition-overview https://www.yiedl.ai/leaderboard/

Funding Request

REQUEST: SUSD 100K

The overall budget (estimated costs) is split into the following :

1. Smart contract developer (2 months full engagement, 20K sUSD requested)
2. AI Data Scientist and Full stack developer (2 months full engagement, 20K SUSD requested)
3. CTO - Supervising the project in terms of IT infrastructure (2 months full engagement,20k SUSD)
4. CIO - Supervising the project in terms of AI and trading activities (2 months full engagement, 20k SUSD)
5. CEO- Supervising the project (2 months full engagement, free of charge)
6. External Audit (expected quote 20-30K SUSD)

Yiedl project has a team of experts perfectly able to achieve all the tasks above.

In the following link, you should find the TEAM with BIO and LinkedIn profile. https://www.yiedl.ai/team/

Peole involved in this specific team would be: CEO: Davide Capoti https://www.linkedin.com/in/davide-capoti-2365b194/ CTO: Roberto Giaccio https://www.linkedin.com/in/roberto-giaccio-95bba713/ CIO : Giovanni Trombetta https://www.linkedin.com/in/giovanni-trombetta-125864b/ Blockchain Architect: Lubin Tan https://www.linkedin.com/in/lubintan/ Data Scientist/Trading Jensen Wong. https://www.linkedin.com/in/jensen-wong-ch/