“0xLSD is becoming an early explorer of AI+Crypto.”
Since the release of ChatGPT by OpenAI in late last year, it has garnered over a million users in just 7 days and reached a monthly active user base of 100 million within two months, making it the fastest-growing consumer application in history. Simultaneously, the software has sparked a new wave of global enthusiasm for large-scale AI models, and its “generative AI” approach has made AI more tangible to people. Currently, ChatGPT has surpassed 1.5 billion monthly active users, accounting for 20% of the world’s population, solidifying its position as the most promising AI application.
The ChatGPT project has raised over $14.1 billion in funding in just six months, driving the boom of AI large-scale model startups and the continuous growth of the generative AI (AIGC) industry. Behind this, NVIDIA, the leading AI chip company supported by computational power, has already surpassed a trillion-dollar market valuation, making it a global leader in the semiconductor industry.
Moreover, the algorithm and data segmentation industries are also experiencing opportunities, and the AI investment market is gradually recovering. According to CB Insights data, in the first half of 2023, there were 86 funding deals in the AIGC field, with equity financing exceeding $14.1 billion, more than a five-fold increase compared to the entire year of 2022. Additionally, 18 companies have entered the unicorn club.
From previous industrial revolutions, we have seen that human productivity and efficiency have been continuously enhanced. Although AI is still in an early stage of development, it holds crucial significance in achieving another breakthrough in human productivity, even ushering in a new “industrial revolution.”
Of course, Web3 is also a new field worth exploring. Based on blockchain technology, it has created a new system of distribution and collaboration, representing a new ideology. In the context of a bearish cryptocurrency market and a lack of narrative direction in the Web3 field, AI+Web3 is emerging as one of the new directions for exploration in the crypto industry.
We believe that AI and Web3 represent the future evolution of productivity and economic models, breaking through our previous cognitive boundaries. The fusion of these two seems natural, filled with creativity and boundless possibilities.
The Synergy of AI and Web3
Previously, AI researcher Roger Brown expressed in his blog that artificial intelligence could contribute to various aspects of the Web3 field by leveraging its capabilities, including:
Decentralized data markets: By using AI, decentralized data markets can be created, empowering individuals to have better control over their data. With the use of AI algorithms, users can selectively share and monetize their data while maintaining privacy and security. AI can analyze and categorize data, optimizing data matching between buyers and sellers, facilitating efficient and trusted data transactions.
Autonomous agents and smart contracts: AI enhances the functionality of smart contracts in the Web3 platform by providing real-time data and predefined rules to autonomous agents. These intelligent agents can negotiate, execute transactions, optimize resource allocation, and provide personalized services. AI-driven smart contracts improve the Web3 ecosystem by automating complex processes, reducing intermediaries, and fostering trust and transparency.
Analysis and Insights based on Predictive Models: The use of artificial intelligence technologies such as machine learning and natural language processing can handle and analyze the vast amount of data generated within the Web3 network. With the help of AI, Web3 users can gain predictive analytics, market trends, and personalized recommendations by analyzing market trends, identifying sentiments, and providing personalized suggestions. Data-driven insights enable users to gain a deeper understanding of the decentralized landscape and harness it more effectively.
Systems for identification and evaluation of individuals: Providing decentralized and autonomous identity solutions is one of the goals of Web3. AI plays a critical role in building robust identity and reputation systems by analyzing user behavior, verifying credentials, and assessing trustworthiness. To ensure secure interactions and foster trust among participants, the Web3 ecosystem is equipped with AI algorithms.
Although there are numerous exploration directions for the integration of AI and Web3, in reality, we find that there are very few projects that truly combine these two in an organic manner.
0xLSD’s New Practice
0xLSD was an early advocate of AI technology in the crypto industry. As a team with a background in financial trading, they developed a series of trading strategies in traditional financial markets and further built AI models based on code and data to pursue stable and substantial profits in potential financial markets.
Subsequently, the 0xLSD team began exploring AI in the crypto market.
We see that AI technology plays a crucial role in on-chain data collection and analysis. As a distributed database, the blockchain records a vast amount of transactions and information. By utilizing AI technology, we can better understand and leverage the data on the blockchain. For example, Web3 Analytics is an AI-based analytics platform that uses machine learning and data mining algorithms to collect, process, and analyze on-chain data. It helps users gain insights into on-chain transactions, market trends, and user behavior patterns, providing more accurate data analysis and decision support. Similar platforms include MinMax AI, which offers AI-based on-chain data analysis tools to help users discover potential market opportunities and trends.
Through exploration and research of the aforementioned products, in 2023, 0xLSD started to further develop its focus in this direction and successfully built an AI-based on-chain market data analysis system. They created a new application ecosystem based on this system, providing positive feedback to investors and the crypto industry, fully unleashing the potential of crypto.
The on-chain liquidity yield aggregation protocol is a core component of 0xLSD’s AI application ecosystem. This protocol leverages AI data analysis and intelligent strategies to automate yield and liquidity in the crypto market. It provides stable yield services based on cryptocurrencies to end-users. Users can pledge idle funds to 0xLSD’s contracts, which are executed automatically based on 0xLSD’s strategy library and AI, to generate substantial profits across different on-chain applications.
Additionally, the protocol allows users to engage in various derivative trading activities through LSD (Liquidity Staking Derivatives) and offers risk management and stable yield through aggregated yield farming pools, safeguarding the security of various POS ecosystems.
While accumulating a significant amount of funds, 0xLSD also provides long-term liquidity services to B2B protocols. On the one hand, 0xLSD integrates AI-based yield mechanisms into these protocols to indirectly activate the liquidity within them. On the other hand, as a new liquidity hub, 0xLSD opens up APIs to facilitate extensive integration with various Web3 applications, serving as a foundational infrastructure for the crypto world.
In addition to the on-chain liquidity yield aggregation protocol, the 0xLSD ecosystem also includes several components such as cross-chain flash swap protocols, on-chain derivative trading protocols, ecosystem wallets, and aggregated public chains. These components aim to establish a more robust liquidity and yield system.
Currently, the crypto market as a whole is in a bear market, and DeFi infrastructure often struggles to provide objective investment returns. However, with the new practices within the 0xLSD ecosystem, leveraging various AI-based yield mechanisms, the average annualized return of 0xLSD is 483%, positioning it among the top performers. As the AI execution system and strategies of 0xLSD continue to optimize, there is potential for further improvement in this return rate.
0xLSD is an early exploration and implementation of AI in the crypto field, serving as a good example and reference for the long-term development of the crypto industry. Regardless, the combination of AI and crypto is an inevitable trend, and 0xLSD is emerging as one of the leaders in this space.