Year: 2024
Type: article
Abstract: Decentralized Finance, or DeFi, is a disruptive force in the financial industry, using blockchain technology to provide financial services that are accessible, open and transparent.Technologies of Artificial Intelligence (AI), particularly deep learning, are utilized in various financial tasks such as algorithmic trading, fraud detection, and risk assessment.Artificial Intelligence-driven Decentralized Finance (AI-DeFi) aims to enhance efficiency, security, and accessibility of decentralized financial systems by integrating AI technologies.This paper proposes a framework that combines AI and DeFi which contains the layers of Automated Market Makers (AMMs), yield farming and lending, and portfolio management.The AMM layer offers liquidity, asset pricing, swap execution, fee collection, and impermanent loss mitigation.Yield farming provides liquidity to decentralized exchanges or lending protocols, while lending platforms lock collateral for security and manage credit risks.DeFi portfolio management involves asset selection, risk management, and performance tracking..This paper also provides implementation details to increase reproducibility of the proposed framework.
Author: Mohamed El-dosuky
Institution: Mansoura University
Language: English
Subfield: Information Systems
Field: Computer Science
Domain: Physical Sciences
Open Access status: diamond
OpenAlex ID: W4403083388