To say there is a lot of innovative stuff happening at the intersection of artificial intelligence and decentralized finance would be an understatement of epic proportions. Indeed, the evolution of DeFAI (or AiFi, if you prefer) has been one of the hottest trends in web3 for a while now, with autonomous AI agents increasingly deployed to conduct trades, audit smart contracts, analyze markets, and much more.
While there is a long list of projects striving to bring the AI economy on-chain, one in particular deserves special mention: Singularity Finance. An EVM-compatible Layer-2 blockchain designed specifically to support AI-powered financial services, it came about as the consequence of a merger between decentralized portfolio management venture SingularityDAO and Cogito Finance, a project specializing in RWAs.
Having recently launched its first incentivized testnet ahead of a scheduled mainnet release in 2025, now is a good time to learn more about the project’s bonafides and vision.
From DeFi to DeFAI
Bringing AI capabilities to the realm of blockchain, and in particular DeFi, is a tantalizing prospect – and one that has already been put into action: the AI agent market, as defined by the value of the platform’s native tokens, is now worth a cool 16.3 billion and rising fast. And there are plenty of use-cases yet to be explored.
What Singularity Finance represents, then, is a gateway to the world of DeFAI for businesses, institutions, and retail users; a venue where they can cut their teeth on the new frontier of DeFi, safe in the knowledge that AI capabilities have been brought on-chain in a transparent and accessible way.
AI Hardware ownership is no longer only available to whales..
The Future of DeFAI starts now – $SFI pic.twitter.com/GeMGN6jH1p
— Singularity Finance (@Singularity_Fi) January 11, 2025
Built on the open-source OP Stack to ensure full compatibility with Ethereum, the AI-optimized Layer-2 furnishes developers with familiar tools while leveraging the PoS chain’s security and extensive builder community. But don’t take that at face value: the aforementioned testnet is a great opportunity to find out exactly what the network has to offer.
Having started on December 30, and set to run for three months, the incentivized testnet allows the Singularity team to evaluate the network’s scalability and security while giving the community valuable hands-on experience with future mainnet features. Participants can engage in all manner of activities, from conducting transactions on testnet dApps (staking, bridging, etc) to testing wallet features, identifying bugs, writing tutorials, completing social tasks, and so on.
Naturally, rewards are the main ‘carrot’ in this scenario: the testnet favors a gamified reward system, with a leaderboard tracking user engagement and dispensing rewards accordingly. Integration with MetaMask, meanwhile, provides a familiar entry-point for users and enables seamless testing of transactions and token management, among other benefits.
For those interested in putting the network through its paces, test tokens are distributed daily and can be requested at https://faucet-testnet.singularityfinance.ai/. The testnet block explorer, meanwhile, is accessible through https://explorer-testnet.singularityfinance.ai. Ultimately, the testnet serves as a platform to attract and educate people/protocols about the benefits the network has to offer.
Needless to say, the soon-to-be listed Singularity Finance’s native token (SFI) serves as the project’s backbone, functioning similarly to ETH on Ethereum for gas fees while also playing economic and governance roles. The token supply will accommodate both existing token-holders from the merger and future development needs, with a clear conversion ratio for SDAO and CGV owners based on a daily moving price average.
When Will Mainnet Launch?
With a mainnet launch expected to closely follow the testnet in Q2, Singularity Finance is gearing up to support a broad swathe of real-world applications and cement itself as a pillar of the burgeoning AiFi sector. Among the Layer-2’s most notable planned features are Optimistic Rollup infrastructure, Account Abstraction, SFI vaults, oracles, and bridges, with the chain itself very much in the high-scalability, low-cost bracket.
Ultimately, Singularity Finance hopes to create an irresistible environment for web3 developers looking to innovate in DeFAI, and for users intent on seizing yield-bearing opportunities. The platform’s steadfast commitment to ecosystem development is evidenced by its new grant program, an initiative that supports builders who contribute to the network’s growth.
Whether the DeFAI sector leads to the creation and popularization of more efficient, accessible, and sophisticated financial services remains to be seen. But there’s no denying the trend’s momentum, or the ambition of cutting-edge platforms like Singularity Finance to positively shape its future.
The post Singularity Finance Aiming to Bring AI Economy On-Chain One dApp At a Time appeared first on CoinGape.
