⚡️Optimizing Automated Market Maker Fees with Machine Learning We're excited to see the OpenGradient team publish this research leveraging Dojo by Compass Labs! Their work on optimizing AMM fees with machine learning is setting a new standard for smarter, more sustainable DeFi protocols. Key highlights: 📈 +18% increase in profitability for liquidity providers in simulations, thanks to dynamic, ML-driven dynamic fees. 📊 A shift from static, fixed-fee systems to a model that adapts to market volatility and risk forecasts to align with liquidity provisioning incentives. This research shows the potential of combining secure AI inference with Dojo's powerful infrastructure, proving how systematic optimization can redefine DeFi's future. 🔗 Dive into the full research and explore the model here: https://lnkd.in/gUKMUhnV Congratulations to Nathan Burton and the OpenGradient research team! #MachineLearning #AI #DeFi #AMM #OpenGradient #Dojo #CompassLabs #Blockchain #Innovation
🚅 Optimizing Dynamic AMM Fees with Machine Learning ⚡️ The OpenGradient team is excited to publish its latest research on leveraging ML models for optimizing AMM trading fees. Led by Nathan Burton, the OpenGradient research team delves into fascinating research on how risk forecasts from machine learning models can be used to dynamically adjust trading fees for traditional Automated Market Maker (AMM) protocols to ultimately improve profitability for liquidity providers (+18% in our simulations). This research explores how shifting from static, fixed fee systems to dynamic fee systems can help better align incentives of liquidity providers with market volatility and perceived market risk. By adjusting fees in real-time with ML models powered by OpenGradient’s infrastructure, AMMs could offer a smarter, more sustainable approach to decentralized finance protocols. This research piece is a step forward in demonstrating how secure AI inference can redefine DeFi’s potential through systematic optimization. We’re excited to share these insights as part of our mission to make decentralized finance more optimized and efficient. Check out the full insights below! 🔗 Read here: https://lnkd.in/gbjkyn_z 🤖 Check out the model here: https://lnkd.in/gq_7Msg6 #MachineLearning #Inference #AI #Trading #DeFi #AMM #OpenGradient #BlockchainInnovation #Fintech