Arbitrum network now features an innovative AI-powered prediction market, launched by leading multichain decentralized exchange PancakeSwap. This new feature, developed in partnership with Allora Network, leverages advanced machine-learning technology to enable more accurate forecasts of Ether price movements.
Collaboration to Improve Market Predictions
The collaboration with Allora is a strategic move to integrate AI-driven price feed data into PancakeSwap’s services. This allows traders to utilize AI predictions to guide their trading decisions on the platform. The AI models, developed by Allora Labs, have historically predicted asset prices with high confidence, aiding in strategic trading moves.
Chef Gyoza, PancakeSwap’s product manager, explained the functionality of the new market, emphasizing the ability for users to choose to follow or oppose the AI’s predictions. This choice provides traders with an opportunity to capitalize on the AI’s track record, which boasts an accuracy rate close to 65%.
Enhancing Transparency and Security
To ensure fairness and transparency, PancakeSwap has made all prediction outcomes and AI performance data accessible via a dedicated history tab on the platform. This allows users to review past rounds, price feeds, and prediction outcomes. The AI predictions are issued only after rounds are locked, securing the process against potential manipulation.
As part of its ongoing innovation in the DeFi space, PancakeSwap also plans to launch CupcakeHop, an AI-powered portfolio management tool by Bril Finance. Set to debut in August, this tool aims to offer tailored investment strategies and enhanced risk management to users across various platforms.
This series of tech-forward initiatives highlights PancakeSwap’s commitment to leveraging AI to refine and expand its trading services, ensuring a more informed and strategic trading environment for its users.
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