Your Crypto Portfolio Operated, Managed and Optimized by AI

Fyde Treasury Protocol explained: the AI-powered portfolio and liquidity optimizer

Imagine that AI does a lot of the heavy lifting in managing your crypto portfolio, trading and DeFi activity, because that’s exactly what Fyde Treasury Protocol does. Users simply deposit their tokens and then AI starts managing your assets. 

Everybody knows the crypto market has lots of wild swings. For many crypto holders it’s also challenging to track their positions across different wallets, while at the same time staying aware of time-sensitive events like DeFi yield resets and airdrops. Investors may forget to cash out, or get rug pulled by scammers. In addition, the market changes so fast that many people are left wondering which narrative they should buy into in the first place.

Now imagine that an AI manages your crypto portfolio, automating all trading and DeFi activity. That’s where Fyde comes into play, with its AI-driven Liquid Vaults at the core of its service.

Let’s take a look. 

What is Fyde?

Fyde Treasury combines DeFi with AI to offer a protocol that can manage your crypto portfolio. The platform aims to bring less volatility to portfolio management, with reduced risk while boosting overall returns for users. At the core of the service are the AI-driven Liquid Vaults. Fyde also comes with two tokens, a position token TRSY and a governance token FYDE. 

The non-custodial Fyde Liquid Vaults help users lock in gains and earn yield while staying liquid. Moreover, these Liquid Vaults are AI-managed smart contracts that manage user funds according to specific investment strategies. Fyde helps users to grow their portfolio steadily, with fewer heavy price fluctuations. This then basically allows users to compound faster over time with minimal effort from the wallet owner. 

The problem Fyde wants to solve is the one of having too many positions to keep up with the wild volatility of the crypto space. Too many tokens across too many wallets makes it very easy for investors to lose track. Investors can forget to sell winners, and often end up riding the waves up and back down again. Investors also often get rug pulled without even noticing it. The nature of the crypto space makes it hard to realize predictable and stable returns on investments. High risk, high reward is the name of the game. Alongside this though comes high emotions, which can lead to poor decision-making. That’s where Fyde’s AI-powered tools come into play. Fyde automates complex, time-consuming, and expensive trading decisions so users don’t have to worry about their investments or constantly check their many different positions.

How the Liquid Vault works

Fyde’s Liquid Vault currently accepts over 40 different cryptocurrencies as deposits. When you deposit one of these tokens into the vault, you will receive TRSY tokens in return. These tokens represent ownership over a portion of the vault. Therefore you will receive TRSY tokens that represent the exact value of the assets you deposit, at the time of your deposit. This Liquid Vault also works somewhat similar to the way liquid staking works on platforms like Lido and Rocketpool.

All the funds deposited into the vault are pooled together and invested using a chosen strategy. This strategy is chosen by AI, letting the vault execute all the trades. This saves users time and effort, as well as transaction fees. 

The vault makes money in multiple ways: 

1. Trading assets for a profit
2. Staking and arbitraging assets to earn yield (e.g. MEV)
3. Rewards for liquidity provision
4. Participating in lending protocols, etc. 

Not only does AI do all the trading and investments, but it also manages the balance of the vault. Fyde uses algorithmic incentives to influence the behavior of depositors. Vaults don’t want to be too concentrated in a single token, and want to diversify as much as possible. 

Using AI to power the Liquid Vaults

Fyde offers Liquid Vaults, which uses AI to manage the investment process for users. Liquid vaults are smart contracts that manage user funds according to specific investment strategies. All of this is managed by AI and protocol-set incentives. The idea is that Fyde can help users grow their portfolio steadily, with fewer heavy price fluctuations, allowing them to compound faster over time. Moreover, this type of portfolio management happens with minimal efforts from the wallet owner.

Fyde utilizes AI in its services for three main reasons: 

1. Assessing and reducing risk
2. Managing asset allocations
3. Optimizing liquidity 

To achieve this, Fyde maps wallets and the associated transactions. This allows the system to predict potential activity, and detect suspicious activity. Based on its calculations, Fyde can also determine what to do with a certain asset: keeping or selling it. The AI can even respond to urgent threats, like a security breach of fraudulent activity by a tokenl’s governance system. In addition, Fyde looks at the DeFi market and trading activity surrounding a token, to determine whether it should buy or sell a certain cryptocurrency.

Coming soon: FYDE governance token

While users will utilize TRSY the most, the Fyde team will soon also introduce their own governance token: FYDE. Alongside governance rights for voting, FYDE will also serve as a reward for users who maintain the balance of the vaults. Rebalancing is possible by exploiting arbitrage loops, which should always allow users to bring TRSY back to the value of the assets it’s backing. 

At this very moment, Fyde is running a marketing campaign where users can earn points. Even though not clearly confirmed, it does seem like this point system is related to an upcoming FYDE token airdrop. 

Getting started and how to use Fyde

Curious to experiment with AI? Interested in letting bots manage your portfolio? Then this is how you can get started with Fyde: 

1. Go to the Fyde app
2. Connect your wallet using MetaMask or other Web3 wallet services
3. Once signed in, click “Deposit” 
4. Now you can select one of the eligible tokens for deposit, and don’t forget to specify the amount. 
5. When done, click “Deposit” and confirm the transactions in your wallet. 
6. You will receive TRSY tokens in return, which you – of course – could potentially utilize elsewhere in the DeFi space.

Closing words

The promise of artificial intelligence isn’t only to take our jobs, but also to make our lives easier. Incorporating AI into Fyde gives the DeFi platform and edge against the traditional Web3 competition. Whether the AI is advanced enough to ride the waves of crypto volatility is something time will tell, but this is a powerful combination.

Disclaimer — This is a sponsored article. DappRadar aims to provide accurate information, but readers should always do their own research before taking action. Articles by DappRadar can not be considered as investment advice.