Marcello Mari on DeFi investment strategies at SingularityDAO

0:01i'm ashton addison from block west capital for investmentpitch media and the cryptocurrent show and today on blockchain interviews with marcelo mari ceo of singularity dao marchello welcome to the show and thanks for taking the time thank you ashton thank you thank you for having me you're very welcome uh let's dive straight into it uh why don't we start off a conversation

0:22with a little bit from uh you on you know what singularity dao is focused on how you guys are helped building out the d5 space and everything else in blockchain and then we'll dive into the details from there yeah absolutely thank you so i'm i'm marcelo mari i'm the ceo of singularity dao which is the first project that's pan out from the singularity net

0:42foundation i've been with singularitynet since 2017. um some of you guys might remember singularitynet from the old days of crypto from the original bull run in 2017 i was part of the ico um it was a lot of fun i've been i've been through the bull and and the bear market we survived and then in 2021 we uh come out with the idea of singularity dao which is singularity net venture

1:08into uh defy and we are um an own chain digital asset manager or a wealth manager so basically um we uh our our core products are are these vaults where where users can use our protocol deposit funds and and then we trade for a given time and hopefully return profit to our users and all of this is powered by artificial

1:36intelligence which is actually our core proposition very cool love it and yeah i remember singularity network and i feel like this is a great evolution you know making it more uh dow like you know bringing more voting power to to the people and i'm curious um if we can break down a little bit more in terms of you know you're investing trading over amount of

1:58time how speculative are you getting or are you just sticking with bitcoin and what is what kind of assets are you working with currently yeah so currently we have uh three volts uh focusing on majors so bitcoin ethereum and then we have one volt dedicated to um to the singularity net foundation all altcoin so so far we've been taking a very conservative approach

2:24although our uh our strategies have beaten the market by an average of 15 to 20 percent so we launched in december right and and then the market crashed right away so our uh our traders and ai have been smart enough to uh to understand what the market volatility was and get out of their positions and getting in their position timely and this is why we basically outperformed

2:48the market however we did that with very basic tools um and our traders could only use uh long only strategies from june onwards they are going to be able to uh to trade derivatives so um also adding a little bit more spice uh to to the trades however um our you know in in in our in our road map we have um we're gonna be offering uh risk

3:16adjusted uh dyna sets and and and volts right so um there will be uh more um risky ones that might return bad greater profits and and more passive ones they're gonna be using um yield optimized solutions across different chains and uh and be slightly more conservative so that's the long-term view of singularity dao

3:44great info and yeah when you are only doing longs and and the market's in a bull market and everything seems to go up it's pretty easy you barely even have to trade uh you just just don't sell right but when it's when you're in december and it's a and it's a downward market uh i'm curious is there is there some secret to this ai where it trades at a certain rate of time or

4:08it just you know if for example if the bear markets out it just sells into stables and then just holds for whether it's days weeks or months until until bitcoin has a buy signal and it just buys back in is there any rhythm or rhyme to the ai so look um first of all yes you're right i mean in bull market it's easier to make to make profits but our goal is to

4:31beat the market right so we want to perform better than the underlying token so actually if you think about it's actually easier to outperform the out than like token during bear markets than than than than bull markets right so that would be the challenge in a bull market that we haven't yet tested so uh so far so far so good though and yes there are a lot of secrets and a lot of

4:56um stuff going behind the scene let's say that you know we can be pretty open about the artificial intelligence work that we're doing uh because that's that's no mystery what's what's his mystery is obviously our trading strategies that we cannot openly talk about because those are that's our secret sauce so let's let's quickly divide this into uh into two

5:18micro areas so when it comes to artificial intelligence we're using a range of techniques so right now we're focusing on um sentiment analysis uh to understand on social media using natural language processing um to understand uh where the market is going and so far we're having incredible results when it comes to the prediction of bitcoin market um

5:39returning results up to 85 percent accuracy and then we have to we have to back test so this is only based on historic historic data and we now have to backtest it so if if this is true this is an amazing breakthrough that they then i don't think anybody else had had before so we're also trying we're also analyzing market data meaning um trading and transactions volumes

6:05liquidity and so on using a different range of uh of machine learning techniques we're going to be ex we're going to experiment a lot with reinforcement learning as well in the future so the difference in in in machine learning and reinforcement learning it's it's in the fundamentals um to make it very very short the machine learning is pretty good in understanding uh in

6:29predicting patterns but doesn't really understand the consequences of its impact in the environment right so since we are trading on chain um our trades have a big impact especially when you trade low liquidity coins right typically a machine learning approach wouldn't tell you uh that the trade has such a big big impact on on on the environment because it doesn't understand you know

6:54only understand patterns reinforcement learning instead will be able to understand the consequences of the of this trade so would be much more profitable on the long run however it requires larger amount of data and longer time to train so right now we're focusing on what can provide profits right away and then we will focus a little bit on research on the long run so there are

7:18various different techniques that we're applying including using some um some particular gpu farms that have never been used in crypto before so a lot a lot going on under the hood that i can go more in detail uh but i don't i think you transcend the uh the the the short span of this conversation very cool uh and now let's look at it from the perspective of you know

7:43somebody who's getting into crypto and they're thinking okay i could either buy bitcoin or i could go into singularity dow and hopefully that will beat the market how do they get involved do they just bring stable coins or any any digital asset and and put it and deposit it into singularity dao yeah basically they can do both right i mean so the so okay so the core mission

8:06of singularity does democratize access to very complex artificial intelligence tools that were before only uh only available for the richest ones right so the one that can actually use hatch funds they can actually invest in hedge funds right and we know the tickets are very high you need to have connections you need to have to be an accredited investor so the fact that we are on

8:27chain allow us to work with anybody because we're not a fund we don't take people's money right we provide technology to trade um to trade these funds so um anybody can join we take stables uh usdc and uh and a number of other stables we take bitcoin we take uh ethereum um and uh and in a range of other cryptos depending on on the votes mainly the underlying token of its votes

8:56so we don't really make a big difference between uh majors and and stable so anybody can actually deposit so the uh the cool thing about singularity dow as a product is that suitable for both beginner users so those that you know they want to get exposure to the crypt economy but they don't know where to start right they don't know like they might fall into scams so instead

9:20you know they can just purchase some stable coins very easy and then deposit them in in in singularity dial and they will get exposure to the crypto economy but also if it's well people like me who i'm you know a crypto navigated person i'm a crypto native person but honestly i don't have the time to follow the market and to actively manage my portfolio right and i see it's on you

9:41know a couple of ethereum maybe or a couple of bitcoin no i wish but uh then on on a fraction of a bitcoin and and if i would put it and i did put it in in singularity dial i would get way better profit so i think if it's a wide range of users interesting and that's great to know so there's no is there a minimum amount or can you can you put a few dollars in

10:07yeah yeah yeah i mean as uh you know you just need to um to to to to to deposit more than the gas fees basically otherwise you're going to be a negative and unfortunately we're only on ethereum now we're going to be on bsc very soon so this problem wouldn't exist and then in the future of course we're going to be on cardano potentially near and uh and a bunch of

10:27other chains because we need to tap in different ecosystem in order to to have enough liquidity to trade small caps right because obviously liquidity is going to be um an issue when you trade when you trade on chain but we truly believe in unchain we truly believe in integrating singularity down with the whole money lego uh ecosystem so anytime you use dynastats you get an lp

10:48token and that lp token in the future will be tradable will be exchangeable on on decentralized exchange can be used as a collateral on on on lending protocols so there's a multiple function that we can take advantage of if we play with the overall defy ecosystem right so if we wanted with the with the team that we have of machine learning engineers the quants and

11:11developers we could have built a close uh off-chain fund on a centralized exchange right like a traditional fund but we really believe in openness we really believe in on-chain we're crypto-native as i said and we believe in the centralization so that's uh that's what we're doing definitely all good principles to to live by and to trade by and now marcelo i want to dive a little bit

11:36into like the the dow part of singularity dao i'm curious on um is that it is it anybody who deposits has governance and is there a governance token related to that or how can people contribute to the future of singularity down yeah thank you for your question so we have a governance token that is called stau sdl that's available on on on the market and

12:02as of now we've carried on only one vote um we plan more votes but the cool things here is that we are about to launch a dow membership program with enhanced voting power for the dow members and a whole number of rewards that we're gonna announce very soon to increase a participation from the dao add utility to the token um add scarcity to the token uh but also decentralize more so

12:33we're gonna be soon announcing the details of this plan this would will change our token economic radically so this is a great opportunity to come on board and fall and and to join our communities to participate even more because as soon as we launch this program um anybody in the community will be able to become a dao member by staking the there's dow token and uh and

12:57and and i think it's going to be a lot of fun to be honest uh looking at the incentives that we have in place that i can't wait to announce to the community there will be a lot going on very exciting and yeah i was going to ask you um obviously uh having incentives is going to make more people move into the dow having a membership program looking you know more down the road say

13:21say a year down the road or even two years what do you think is going to be the number one thing for singularity dow to bring tens of thousands or hundreds of thousands of people into this community and make it the go-to dow for for trading look um the the number one so i get i get the this question a lot i actually never never discussed this publicly this is an

13:47interesting question um a question that i get a lot from uh from advisors investors and and crypto people in general is why singularity doubt is better than other asset managers right and and the reason is that we make profit we already make profit right so we already have a record i used a bunch of asset manager so that

14:15made me laugh made me lose a lot of a lot of money so that's not cool so our number one our number one goal is the one to make profits for our users and in order to make profits we need to build key cash trading strategies and kick-ass dynasty and in order to do so we need to work on our quant strategies and we need to work on an artificial intelligence

14:38that is able to predict market trends that that is able to read the markets and eventually that it's able to trade autonomously so we're not building trading bots here we're building something that is superior something that can learn from the market it can analyze a number of a number of data in order to make its autonomous trading decisions when i mean autonomous i mean

14:59like automatic trading decisions we always gonna have a human layer because when you play with with people's funds you know you want to safeguard this this ai but the big goal is to leverage the power of data analytics machine learning natural language processing in order to make better and smarter smarter investor decisions i mean look at look at um a

15:23renaissance by jim salmon right which is an ai this the the the the fun the hedge fund that in the world does leverage ai the most i mean it's constantly uh beating the market and outperform the market i mean data driven strategies are proven to be the most effective and this is why and this is what we're bringing to krypton to defy yeah very good answer marcelo and i

15:44completely agree um you know adding more assets doesn't really matter if you can't beat the market you know and if people are beating the market and they're getting a higher return than just holding then they're going to continue to to use singularity dow so i like that answer um i'm looking forward to seeing this membership program and getting more

16:03people involved what is the best way for people to learn more about you know these assets and just more on the dyna sets how it works and to get involved with the membership yeah look um we we have a very active telegram community that anybody can join just be aware of scam of course uh if it looks too good it's probably not true right i mean if they're giving away a big chunk

16:25of the token supply they're probably scammers a lot of impersonating we are on discord um check out singularitydow.ai you can always reach out to me on on telegram and twitter we're very active on twitter as well so uh you're always out there communicating so getting getting getting in touch with with with us is very easy if you want to start using dyna set the next trading window

16:49would be in june so check out our app become familiar with our app because as soon as we open the next trading window you will be able to participate and uh and uh and hopefully take advantage of our our sophisticated trading strategies and all our new products very cool i'm looking forward to all those updates i'll watch out for the next dyna set in

17:12june myself as well i will leave a link for the viewers to check out uh singularity dao and all the other links for the socials that you mentioned and i'll put those in the description box below thank you so much marcelo for coming on the show appreciate uh all you've brought here with this information uh keep beating the market and let's follow up in the near future

17:32beautiful thank you ashton thank you so much for having me it's been a pleasure