Fetch.ai, a U.K.-based artificial intelligence (AI) tool developer for crypto, is bringing advanced trading products tailored for decentralized exchanges (DEXs).
Fetch.ai reduced the chances of hacking
Fetch.ai is looking to power peer-to-peer transactions between decentralized finance(DeFi users using “agents” that are AI-powered to carry out trades.
The trades will be executed based on user-defined parameters and will come about later this quarter.
According to CEO Humayun Sheikh, the new trading tools will allow users to submit their orders to the agent that puts them in escrow or an atomic transaction and then determines the order matching.
The platform will then come into play in finding and creating liquidity such that agents work together to develop decentralized order books.
Individual agents allow the platform to overcome the risk of the smart contract on a DEX that is exploited or the possibility of a rug pull from the developers. Sheikh mentioned that a hacker must hack each agent as there is no central smart contract.
DeFi platforms getting into AI
Crystal Blockchain data shows that, as of last month, almost $120 million had been stolen in crypto in 2023. Notably, these hacks spread across 19 different breaches and most involved attacks on code and design of decentralized protocols.
These thefts lead to loss of funds and eliminate confidence in the DeFi industry. Hence, Fetch.ai is looking to tackle how the protocols work and establish an alternative to prevent loss through hackers.
DeFi platforms have been looking into AI. MarginFi, a decentralized margin protocol, recently launched a crypto AI chatbot called Omni. Omni will allow users to understand and engage with web3 by answering crypto-related questions.
In addition, it will take on-chain actions on behalf of users through simple text prompts. Meanwhile, CryptoGPT, an AI-focused layer 2, had a value of $250 million after new funding of $10 million.