Fetch.ai, a U.K.-based firm that specializes in developing artificial intelligence (AI) tools for the crypto industry, is introducing an array of enhanced trading products for decentralized exchanges (DEXs). The company aims to enable peer-to-peer transactions between decentralized finance (DeFi) users through AI-powered “agents” that execute trades based on user-defined parameters. The suite of trading tools will be launched later this quarter.
According to CEO Humayun Sheikh, users will submit their orders to an agent, which will then put them in escrow or an atomic transaction while working out where it can do the order matching. The platform’s ability to find and create liquidity is where it comes into its own, and agents work together to create decentralized order books. By focusing on individual agents, Fetch.ai hopes to overcome the risks that come with the smart contract at the heart of a DEX being exploited or the developer promoting a new project disappearing with users’ money in what’s known as a rug pull.
The agents use their own smart contracts to carry out users’ instructions, which means that a hacker would have to hack every single agent. They wouldn’t be able to hack the central smart contract because there isn’t one. This approach eliminates the need for a liquidity pool, which is the mechanism usually employed by DEXs to facilitate quick and efficient trading. As a result, there is no trove of coins for hackers to target.
Crystal Blockchain, an analytics firm, reported that as of last month, nearly $120 million in crypto had been stolen in 2023 across 19 different breaches, with most involving attacks on vulnerabilities in the code and design of decentralized protocols. These thefts are not only directly damaging to the victims, but they also undermine confidence and the potential for further adoption of DeFi. Fetch.ai aims to tackle this problem with its alternative paradigm for how the ecosystem can operate.
The company’s approach to trading is unique, and it is expected to be a game-changer in the DeFi space. Fetch.ai’s AI-powered agents enable users to trade on a decentralized platform without the need for a central authority. This approach is in line with the ethos of DeFi, which aims to create a financial system that is open, transparent, and accessible to everyone. By eliminating the need for a central authority, Fetch.ai’s trading tools ensure that users have complete control over their assets and can trade with confidence.
Fetch.ai’s suite of trading tools is expected to be a hit with DeFi users who are looking for a more secure and efficient way to trade. The platform’s ability to find and create liquidity is a major selling point, as it eliminates the need for a liquidity pool. This means that users can trade without worrying about the risk of a hack or a rug pull. Additionally, Fetch.ai’s AI-powered agents are designed to execute trades based on user-defined parameters, which means that users can trade with confidence knowing that their instructions will be carried out to the letter.
In conclusion, Fetch.ai’s enhanced trading products for decentralized exchanges are set to revolutionize the DeFi space. The platform’s AI-powered agents enable users to trade on a decentralized platform without the need for a central authority, which is in line with the ethos of DeFi. The platform’s ability to find and create liquidity is a major selling point, as it eliminates the need for a liquidity pool. This means that users can trade with confidence knowing that their assets are secure. Fetch.ai’s suite of trading tools is expected to be a game-changer in the DeFi space, and it will be interesting to see how it develops over the coming months.