Decentralized finance has opened up a world of attractive passive income and value investing potential, with the high yields on offer in stark contrast to the low, or indeed zero interest rate products available in the traditional fiat market, and value in equity increasingly hard to ascertain.
However, in the fast-paced and competitive Defi landscape, some platforms can disappear as quickly as they arrive, as farmers extract the most attractive yields before jumping on to the next opportunity or vulnerabilities get exploited. That contributes to a high-risk environment and compounds traffic levels to the extent that high blockchain transaction fees can render many services unusable.
Advancements in artificial intelligence finance, or AiFi, have led to the development of automated strategies. These can replace traditional fund managers, monitoring the market to identify assets with the best risk-adjusted potential to deliver passive income and value investment returns across a diversified portfolio.
Rocket Vault Finance leverages such advanced artificial intelligence (AI) predictive analytics and machine learning (ML) algorithms to develop alternative, intelligent, and automated investment strategy solutions.
These data-driven strategies minimize losses and maximize gains to provide the best APY returns for stablecoin capital in a one-stop-shop “Smart Vault.” It avoids the need to manage multiple crypto assets across a range of liquidity mining, staking, or other platforms, without incurring unnecessary fees and risk. Rocket Vault Finance’s proof-of-concept has consistently achieved over 100% APY over the last 12 months, disrupting the way individuals and institutions can generate returns on cash equivalents. So how does it work, and what are the benefits over existing projects?
AI and Machine Learning Investment Strategies
Rocket Vault Finance AI identifies the best-performing tokens and pools to automatically invest in while avoiding the worst-performing to reduce risk exposure. ML tools recognize and learn from consistent patterns and behaviors, automatically training Rocket Vaults to open trades based on those patterns and close them to protect gains, transferring funds to a treasury ready for the next opportunity.
Incorporated hedging strategies are part of risk management, and an arbitrage bot automatically monitors the market for opportunities to execute arbitrage trades too.
The strategies, such as using artificial neural networks to identify time series anomalies, continually learn from historical market data, and previously deployed trades to increase intelligence and maximize performance round the clock.
Automated Smart Vaults
By analyzing, developing, and testing these strategies over many iterations, Rocket Vault Finance can replace an experienced fund manager by integrating that aggregated intelligence into its Smart Vaults. Smart Vaults allow investors to deposit tokens with no human intervention required, removing emotion and putting the capital to work in a purely data-driven scalable trading system that is currently making 75% successful predictions, with improved accuracy over time.
Smart Vaults achieve this by:
- Monitoring the data sets of close to 800 digital assets across global exchanges.
- Identifying tokens using machine learning that have the most valuable investment potential by observing patterns on platforms with the most liquidity.
- Avoiding risky assets based on historical data.
- Diversifying investments into these multiple high potential tokens.
- Monitoring the investments in real-time and booking profits at optimal levels.
- Compounding automatically with the profits generated.
- Maintaining stablecoin reserves to re-invest in opportunities or DCA (dollar-cost averaging) to hedge.
Unique Architecture Solution
Rocket Vaults deploys unique architecture to deliver intelligent fund management automatically:
Real-Time Data Fetching Engine
Fetches data in real-time from global exchanges and feeds into the Prediction Engine for further processing.
AI/ML Prediction Engine
Processes large volumes of historical data and analyzes it using data modeling and statistical analysis techniques. Predictive analytics and pattern recognition using ML are used to identify when to open and close trades.
Rocket Vaults automatically rebalance funds during market fluctuations to allocate higher amounts to patterns of greater probability.
Treasury Management Engine
Decides how much to enter into a position with, the reserve for DCA hedging, quarterly payout amounts, and profits to maintain as stablecoin reserves.
Monitors existing orders and dynamically adjusts according to market conditions.
Executes multiple strategies in parallel to handle various market scenarios, providing an edge to achieve maximum performance.
Rocket Vault Finance is hosted on hyper-scale systems like Google Cloud and AWS, performing tasks such as:
- Keeping records of all historic token prices.
- Hosting AI models for inference.
- Blockchain integration to pass rewards data to smart contracts.
While being a platform open to all investors, Rocket Vaults scales up to handle larger volumes and provides a gateway for institutional investors to invest intelligently in the crypto market. Only a few global exchanges can currently handle the volumes required to support such investment. Rocket Vault Finance is positioning itself to be the gateway to those highly liquid exchanges with a single point-of-access.
The platform is free to use for retail investors who hold a fixed number of the platform’s RVF tokens, an ERC20 utility token used to obtain access to Smart Vault services, ensuring the transparency and security of financial transactions. Paid services are on offer to institutional investors with a 2% management fee and 5% profit fee, though payments in RVF tokens receive discounts.
42,500 RVF tokens will be distributed to the community following a public sale in February 2021.
An Alternative to Yield Farming Projects and Traditional Market Returns
The range of yield farming platforms regularly emerging in the DeFi space offer unsustainably high APY levels to attract users that drop once the total value locked has grown. Whereas Rocket Vaults automatically adjusts algorithms according to the increased cap and still generates the best APY consistently over the long term.
Rocket Vault Finance will not mint tokens to distribute as rewards. Instead, returns are delivered in the stablecoin of the user’s choice, USDC, USDT, or DAI, and distributed every quarter. RVF operates as a utility token to incentivize and track platform adoption, rather than a yield reward then sold on the market that may reduce platform demand.
As it’s hybrid solution rather than a blockchain-based protocol, it also can’t easily be copied and replicated, creating a more robust platform that complements the space rather than competing against it.
Combined with a traditional world where any returns on cash savings got obliterated and equity markets are increasingly risky, Rocket Vault Finance’s AiFi solution presents a viable passive income and value investing strategy.
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