The decentralized crypto exchange PancakeSwap is preparing to launch CupcakeHop, an artificial intelligence (AI)-powered portfolio management tool.
The tool, supported by PancakeSwap and developed by Bril Finance, is intended to enhance the administration of decentralized finance (DeFi) investments.
CupcakeHop, scheduled to debut in August, is designed to provide real-time risk management and customized investment strategies to a broader audience, thereby increasing DeFi’s accessibility.
AI-driven Portfolio Management
Connor O’Shea, the CEO of Bril Finance and the developer of CupcakeHop stated in an interview with Cointelegraph that the AI portfolio management feature automates investment strategies based on a user-defined objective and real-time market conditions.
“It’s continually adjusting strategies to optimize performance with the intended purpose of maximizing returns.”
User-controlled Risk Management
The risk engine of the new tool will autonomously rebalance pools to guarantee the security of user-deposited assets, thereby identifying and isolating potential risks.
In an interview with Cointelegraph, O’Shea proposed the implementation of a risk management slider element about the subject of risk management.
“What I envision is effectively a risk slider that’s proportional to return. If you’re a user, you come in, and you get three buttons: high risk, medium risk, or low risk. And then, for each of those, we could have a return profile.”
O’Shea clarified that the purpose of a toggle tool of this nature would be to make “DeFi more approachable, especially for newcomers when discussing its purpose.”
O’Shea concluded the discussion of the slider concept by drawing a comparison between the functionality and the launch sequence of a nuclear weapon that was more humorous.
“I’m thinking about putting a plastic cover over the high-risk button. You have to, like the nuclear launch code, lift the plastic lid to press the red button on the high-risk.”
Market transparency and precision
CupcakeHop endeavors to resolve the issue of reporting accuracy by providing users with plain and precise information regarding their investments.
“A lot of the numbers that you’ll see on dashboards and external reporting don’t actually match the tokens that are deposited into a user’s wallet. […] we’re trying to make sure that users get an accurate depiction of what’s going on.”
Bril Finance‘s average monthly trading volume exceeded $27 million during the previous quarter and has totaled $82.6 million since late March.
