Introduction to VCRED
AI powered directional market making via robust statistical indicators
Last updated
AI powered directional market making via robust statistical indicators
Last updated
VCRED is a DeFi product that aims to solve the problem of managing liquidity efficiently and executing trades as a Market Maker. It leverages AI expertise and a unique contract architecture to perform directional marketmaking via robust statistical indicators.
VCRED's Smart Market Maker combines the best of both worlds:
🤖 UX similar to AMMs: Liquidity providers/Projects can stake tokens and liquidity into our custom vaults or pools and earn service fees.
🤖Asymmetric exposure: Enabling asymmetric exposure on long tail assets with a more transparent view of the algorithmic marketmaking process.
VCRED's AI Engine is a product developed in-house that uses gigabytes of daily orderbook and trade data to make decisions for selecting the right trading algorithms and alpha factors. It emphasizes a statistically robust feature selection process to avoid the "garbage in, garbage out" philosophy, which simplifies the data aggregation, feature extraction, and selection process. By automating these processes, the engine provides strong indications of asset trends and directions, making it a valuable tool for traders.
VCRED's smart Market Maker allows developers and projects to customize aspects of their smart contracts and ML pipeline to fit their risk/reward profiles, enabling a different earning mechanism beyond just swap fees. Projects can choose which reward tokens to incentivize with either iVCRED tokens or their own tokens with a differing performance fee structure. Additionally, any ERC20 token can potentially be used as an incentive or reward token, providing unique opportunities for traders.
VCRED deploys a set of strategies that use AI engine inferences to execute trades based on curve-based inventory management. Our smart contracts act like a smart vault, enabling users/projects to customize componenets of contracts and the ML pipeline based on their needs and risk/reward profiles. This approach enables access to personalized, AI-powered trading experiences and asymmetric exposure on their assets.
VCRED has been deployed natively on the Avalanche network to take advantage of its high transaction speed and Proof of Stake (PoS) consensus mechanism. By leveraging Avalanche's low fees and high transaction speed, we are able to enhance our trading strategies and execute trades in a highly efficient manner. Additionally, we recognize the significance of subnet innovation and are actively working to incorporate this concept into our technology.
Avalanche