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Artificial Intelligence-driven Decentralized Finance

by Mohamed El-dosuky
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International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 186 - Number 40
Year of Publication: 2024
Authors: Mohamed El-dosuky
10.5120/ijca2024923993

Mohamed El-dosuky . Artificial Intelligence-driven Decentralized Finance. International Journal of Computer Applications. 186, 40 ( Sep 2024), 1-6. DOI=10.5120/ijca2024923993

@article{ 10.5120/ijca2024923993,
author = { Mohamed El-dosuky },
title = { Artificial Intelligence-driven Decentralized Finance },
journal = { International Journal of Computer Applications },
issue_date = { Sep 2024 },
volume = { 186 },
number = { 40 },
month = { Sep },
year = { 2024 },
issn = { 0975-8887 },
pages = { 1-6 },
numpages = {9},
url = { https://ijcaonline.org/archives/volume186/number40/artificial-intelligence-driven-decentralized-finance/ },
doi = { 10.5120/ijca2024923993 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2024-09-27T00:46:19.236222+05:30
%A Mohamed El-dosuky
%T Artificial Intelligence-driven Decentralized Finance
%J International Journal of Computer Applications
%@ 0975-8887
%V 186
%N 40
%P 1-6
%D 2024
%I Foundation of Computer Science (FCS), NY, USA
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.

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Index Terms

Computer Science
Information Sciences

Keywords

Decentralized Finance Blockchain Artificial Intelligence

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