Apply AI to the protocol
Orchai leverages AI technology to provide users with valuable insights and suggestions for managing their DeFi operations, which is achieved through its main protocol, the DeFi Orchestrator. The AI algorithms analyze market conditions and user behavior to provide personalized recommendations for investment strategies, suggest the most effective and optimal strategy based on users' investment objectives, and automate specific actions based on market fluctuations or users' profiles on DeFi protocols.
Orchai's AI models are trained on a diverse range of data sources, including historical market data, user behavior data, and external data sources. These models analyze the data to identify patterns and trends in the market, and use this information to provide valuable insights and suggestions regarding future market movements
The AI models are constantly learning and improving, as they receive feedback from user behavior and market performance. This allows Orchai to provide increasingly accurate and effective recommendations to its users over time.
For Orchai Liquid staking
AI can be applied to select the best validators within the Oraichain. This strategy uses a validator scoring mechanism to find the highest yield for our users while ensuring that funds are delegated across the top network validators, by base on two major aspects: APR and Security.
For Orchai Money Market
a. Asset Evaluation and Management By evaluating and managing the digital assets in Orchai, all statistics about holders, transactions, total supply, etc., will be calculated. Based on these analyses, AI models will evaluate and adjust the parameters, including LTV, Liquidation Threshold, etc.
b. Interest Rate Management In the Interest Rate Management process, the industry macro analysis, assets flow analysis, and DEFI services, lending will be operated. With those analyses, the interest rate parameters in Orchai will be calculated to contribute to the stability of the protocol and benefit the users.
c. Risk Management Risk management is to balance Capital Efficiency and Risk to the protocol. The protocol increases Capital Efficiency to a maximum, considering that the amount of risk in the system doesn’t increase significantly. This will ensure that the risk is still in control.
d. Deflation Mechanism The mechanisms of the Orchai incentives program and staking program will be applied in the Orchai ecosystem. Therefore, Orchai and Oraichain’s assets flow analysis will help evaluate and build the Deflation Mechanism, and Oraichain’s analysis of Inflation/Deflation will bring sustainability to users.
e. Credit Score Evaluation Though an effective tool in lending, credit score has never been used in existing decentralized lending platforms. As a pioneer, the Orchai protocol uses AI to evaluate credit scores for users and their digital assets. With this, the system can reduce the lending risks by defining a credit-score threshold for borrowers participating; and stimulate borrowing by specifying a high Loan to Value ratio for borrowers with high credit scores.
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