The promise of AI in DeFi rests on the fact that AI can help assess risk and optimize returns in a way that humans simply cannot. In the world of DeFi, where margins are often razor-thin and volatility is high, this could be the difference between success and failure. For example, consider a simple arbitrage trade. If done manually, it would require constantly monitoring multiple markets for price discrepancies and then rapidly executing trades when an opportunity arises. However, an AI-powered bot could do this automatically, freeing up human capital to focus on other aspects of the business. Similarly, AI could be used to automatically execute complex financial strategies such as market making or liquidity provisioning. In a world where speed and efficiency are paramount, AI could be the key to unlocking the full potential of DeFi.
Source: DeFi Development Company USA
