Singularry - Venus Protocol Grant Proposal

Executive Summary

Singularry is an autonomous AI system that integrates advanced machine learning with decentralized finance to enhance the Venus Protocol ecosystem. Our proposal seeks funding to develop and implement AI agents specifically designed for the Venus platform, focusing on user experience enhancement, cross-platform optimization, market analysis, and community engagement. This initiative aligns directly with Venus Protocol's objectives of expanding its user base, improving functionality, and fostering greater community engagement.

1. Project Overview and Alignment with Venus Ecosystem

Project Description

Singularry proposes to develop and deploy a suite of AI agents specifically tailored for the Venus Protocol ecosystem. These agents will leverage sophisticated machine learning models to predict market trends, optimize user positions, enable cross-platform strategies, provide market analysis, implement AI-driven credit scoring, and enhance community engagement.

Alignment with Venus Ecosystem

Our project directly contributes to the Venus Protocol's growth and development in the following ways:

• Enhanced User Experience: Our AI agents will simplify complex DeFi decisions for Venus users, making the platform more accessible to both novice and experienced users.
• Increased Platform Adoption: By reducing the learning curve and optimizing strategies, we aim to attract new users to the Venus ecosystem.
• Expanded Functionality: Our AI agents will add new capabilities to Venus, such as under-collateralized lending through AI credit scoring and cross-platform optimization.
• Community Growth: Dedicated community agents will strengthen user engagement, provide education, and foster a more vibrant Venus community.
• Revenue Generation: 50% of revenues generated through our AI integrations will be allocated directly to the Venus Treasury, creating a sustainable value flow back to the protocol.

2. Innovation and Ecosystem Growth

Technical Innovation

Singularry brings several innovative approaches to the Venus ecosystem:

• Automated Playbooks for Venus: Developing specialized playbooks including:
  • Liquidation Prevention Playbook: Automatically monitoring and adjusting positions to prevent liquidations
  • Portfolio Rebalancer: Optimizing asset allocations based on market conditions
  • DCA Bot: Automated dollar-cost averaging for Venus assets
  • Dip Buyer: Smart purchasing of assets during market downturns
  • Yield Optimizer: Automated reallocation to maximize yields within Venus
• Cross-Protocol Intelligence: Enabling Venus users to identify and execute opportunities across Venus and Thena, including:
  • LP Position Manager: Optimizing liquidity provision on Thena
  • Cross-DEX Arbitrageur: Identifying and executing arbitrage opportunities between platforms
• ML-Powered Decision Making: Using machine learning to analyze on-chain data and market conditions to drive automated strategy execution
• AI Agent to operate the several Venus converter bots on multiple networks in order to take advantage of best possible exchange rates to maximise Venus Treasury revenues and Prime programs rewards.

Expected Outcomes and Benefits

• User Growth: 30% increase in active Venus users within six months of full implementation
• Increased TVL: 25% growth in Total Value Locked as users optimize their positions and bring additional assets to the platform
• Reduced Liquidations: 40% decrease in liquidation events through proactive position monitoring and adjustment recommendations
• Enhanced Revenue: New revenue streams for Venus Treasury through AI agent integration
• Improved User Retention: 50% increase in user retention through better onboarding, support, and engagement

Technical Expertise and Implementation Capability

The Singularry team consists of experienced developers and entrepreneurs that have a proven track record of building innovative and successful tech companies. E.g. (https://livingpackets.com):

• Fabian Kliem: https://de.linkedin.com/in/fabiankliem
• Leonard Schellenberg: https://de.linkedin.com/in/leonard-schellenberg-591000171

Their fields of expertise include:

• Machine learning and AI systems (specifically LLM fine-tuning and agent development)
• Smart contract development
• Mobile Development
• Smart contract auditing and security
• User experience design and implementation
• Hardware Development

Our team has successfully delivered similar AI integration projects for other DeFi platforms, demonstrating our capability to implement the proposed system within the timeline and budget outlined.

3. Funding and Budget

Total Grant Request: $50,000

Budget Allocation

Infrastructure Costs (50%): $25,000

• Computing resources for AI model training: $17,500
• Development and testing infrastructure: $5,000
• Deployment and monitoring systems: $2,500

Development Costs (50%): $25,000

• Lead AI Engineer (2 months part-time): $12,000
• Smart Contract Developer (2 months part-time): $8,000
• Frontend Developer (1 month part-time): $3,500
• QA and Security Testing: $1,500

Need for Funding

The requested funding is essential for:

• Scaling Computing Resources: Training sophisticated AI models for the automated playbooks requires computing power that is currently beyond our capacity.
• Accelerating Development: Additional developer resources will allow us to complete the remaining two months of development for all planned playbooks and integrations.
• Ensuring Security and Quality: Proper testing and auditing of all integrations with Venus and Thena protocols to maintain high security standards.

Without the grant funding, we could face significant delays in bringing these innovations to the Venus community and would need to scale back the scope of our planned automated playbooks.

4. Project Timeline and Milestones

Phase 1: Development Preparation (Completed)

• Finalized technical specifications for core AI agents
• Set up development and testing infrastructure
• Established integration protocols with Venus

Phase 2: Core Playbooks Development (Month 1 - In Progress)

• Implement and test the Liquidation Prevention Playbook
• Implement and test the Portfolio Rebalancer
• Implement and test the DCA Bot
• Implement and test the Dip Buyer automation
• Implement and test the Yield Optimizer

Phase 3: Thena Integration (Month 2)

• Develop the LP Position Manager for Venus/Thena integration
• Implement the Cross-DEX Arbitrageur
• Integration testing with Venus and Thena protocols
• Deploy features on the Singularry platform

Future Phases (Post-Grant)

• Develop Community Support, Content Creation, and Gamification Agents
• Direct integration with Venus frontend
• AI Credit Scoring System implementation
• Ongoing optimization based on user feedback

5. Reporting and Communication Plan

Regular Updates

• Monthly progress reports submitted to the Venus grants committee
• Final comprehensive report upon completion of the funded phases

Community Engagement

• Bi-weekly updates in the Venus Discord for community awareness
• Demonstrations of new features upon completion of each phase
• Documentation of playbooks and features on the Singularry platform

Success Metrics Reporting

We will track and report on the following key metrics:

• Performance metrics for AI playbooks and automations
• Impact on Venus TVL for users utilizing Singularry tools
• Revenue generated for Venus Treasury

6. Future Plans and Sustainability

Upon successful implementation of the initial AI agents, we plan to:

• Continue refining and improving the AI models based on usage data
• Develop additional specialized agents for new Venus Protocol features
• Explore expansion to other aspects of the Venus ecosystem
• Create advanced trading strategies using machine learning optimization

The project will be sustainable through:

• Revenue sharing with Venus Treasury (50% of generated revenue)
• Premium features for power users while maintaining core functionality for all
• Continuous improvement driven by user feedback and performance data

7. Conclusion

The integration of Singularry's AI agents with the Venus Protocol represents a significant opportunity to enhance the platform's capabilities, improve user experience, and drive adoption. Our proposed solution directly addresses current challenges in the DeFi space through innovative applications of artificial intelligence.

We are committed to delivering high-quality AI agents that provide real value to Venus users and contribute to the long-term growth and success of the protocol. The requested grant funding will enable us to accelerate development and bring these innovations to the Venus community within a compressed time frame.

We look forward to the opportunity to collaborate with Venus Protocol and welcome any questions or requests for additional information regarding our proposal.