Finance requires two seemingly opposing qualities: predictability (i.e. smart contracts) and adaptability (i.e. AI). DeFi has spent years building reliable, transparent financial primitives through smart contracts. But we've not seen yet AI-driven dynamic allocation of capital as opportunities arise. Corners of DeFi are still incredibly inefficient and I think the smart application of AI will not only unlock arbitrage profits but also improve price discovery, anticipate market shifts, and inform directional positioning.
