How does the liquidity strategy platform Quantlytica simplify DeFi investments through AI technology?

Author: Grapefruit, ChainCatcher

Editor: Marco, ChainCatcher

DeFi once attracted countless users with the ideal of inclusive finance, promising to eliminate unfairness and opacity in the traditional financial system through technological means. However, as the industry has developed, DeFi products have become increasingly specialized, and strategy designs have become more complex, seemingly more suited for professional investors and institutions, resulting in many potential users being blocked by high entry barriers.

This trend of complexity not only deters ordinary users but also strays further from the original intention of inclusive finance. Simplifying the complex operations and strategy choices in DeFi applications, allowing more ordinary users to participate and benefit, has become a key issue for the industry's development.

The AI liquidity allocation strategy platform Quantlytica is dedicated to simplifying the process and experience of participating in DeFi. Through AI technology, it streamlines the DeFi investment process, optimizes the investment experience, and meets the investment needs of ordinary users. The platform integrates multiple DeFi protocols and uses AI technology to horizontally compare data on returns, liquidity risks, and security across all DeFi projects, then provides various automated liquidity investment strategies based on different user needs.

In an interview with ChainCatcher, Quantlytica's Chief Product Officer (CPO) Wesley explained that Quantlytica is not just a simple crypto asset management tool, but a liquidity portal in the crypto space. While helping users deploy their asset liquidity into the crypto market, it also attracts liquidity for projects. It is more like a systematic liquidity solution that meets the diverse investment needs of today's DeFi participants.

On August 8, Quantlytica announced it had secured €1 million in funding, with participating investors including the Polygon Labs ecosystem fund, Web3Port Foundation, DWF Ventures, and other top crypto institutions.

On September 13, Quantlytica's native token officially began its Token Generation Event (TGE) and was immediately listed on multiple exchanges, including Bitget, MEXC, and BingX.

Optimizing DeFi Investment Experience with AI

"The idea of creating Quantlytica originated in March last year, mainly aiming to develop a crypto banking-level product that could rival traditional financial experiences. After more than a year of development and refinement, we released the first version of the test product, Quantlytica Testnet, in May this year, attracting thousands of users to experience it," Wesley mentioned during the interview.

Quantlytica is an AI-driven multi-chain liquidity allocation protocol, positioned as a "liquidity portal" in the DeFi space. By integrating DeFi protocols or yield strategies across multiple chains into a unified platform, it leverages AI technology to drive and coordinate liquidity allocation among various DeFi applications and chains, helping users find and build the best investment strategy combinations.

On the Quantlytica platform, users can automatically participate in investment opportunities across multiple chains with a simple one-click operation, significantly simplifying the complex processes of DeFi investment and making the investment experience smarter and more convenient.

Today, as the market matures and competition intensifies, many DeFi projects have begun to introduce complex mechanisms and designs to enhance product competitiveness and attractiveness. This trend of complexity has made DeFi products increasingly difficult to understand and use.

For example, Uniswap V3 introduced concentrated liquidity and a multi-tier fee structure, which, while improving liquidity efficiency, also increased the learning and operational costs for liquidity providers. Advanced features like credit delegation introduced in Aave V2 can enhance capital utilization but are more suited for professional investors and developers, making it difficult for ordinary users to understand and use.

Due to the complexity and high risks of DeFi products, more and more ordinary users are choosing to withdraw, leaving the dominance to high-end players such as professional investors and institutions. Data shows that most funds on top DeFi protocols like Uniswap, Aave, and MakerDAO come from large holders or institutional collaborations. This trend not only makes it difficult for ordinary users to participate but also significantly undermines the inclusiveness of the DeFi market.

Quantlytica aims to eliminate the industry barriers of DeFi by providing a range of features designed to optimize the DeFi experience, making it no longer an exclusive domain for high-end players. Users can easily participate in DeFi products without any professional knowledge or crypto background, allowing DeFi to truly become an inclusive financial system accessible to everyone.

This is all thanks to the founding team's extensive experience in traditional finance. Co-founders Wesley and Guy both have decades of experience in traditional finance and have held significant positions at Singapore's DBS Bank, with Guy having a background in quantitative trading and previously managing over $100 million in funds at the globally renowned venture capital firm Acadian. Another founder, David, is an AI expert from Stanford University.

"It is precisely because of our deep financial experience and technical background that the Quantlytica team can clearly understand the products and processes that financial users want to engage with," Wesley summarized.

Wesley gave an example: when people mention banks, they often think of something very complex and profound. However, in reality, people use banks through various apps like Alipay, WeChat Pay, and UnionPay, which is very simple, allowing users to participate without any financial knowledge or background.

"Simplifying complex financial products" is the advantage of the Quantlytica team.

First, in product design, Quantlytica will provide some small tools or page entrances to help users better participate in the DeFi market, such as integrating various DeFi protocols into a unified page, allowing users to participate in multiple investment opportunities with one click.

Additionally, the Quantlytica team will merge traditional financial experience and knowledge with Web3, leveraging AI technology to help users better enter the market and use products. For instance, AI technology can analyze data on DeFi protocol returns, supporting users in customizing the best investment portfolios and strategies to maximize returns based on their needs.

Liquidity Strategy Aggregation Platform: Supporting Customized DeFi Investment Strategies

Currently, Quantlytica's product form mainly consists of four components: liquidity automation, AI asset management assistant QuantGPT, modular Fund SDK, and risk management engine.

First, liquidity automation is Quantlytica's flagship feature, primarily optimizing liquidity allocation across multiple networks and DeFi applications through AI technology, ensuring users are provided with more efficient capital deployment strategies to maximize returns. Quantlytica offers users a complete set of liquidity management tools and automated investment strategies, allowing them to easily manage cross-chain liquidity and automatically nest investment portfolios to maximize returns.

Specifically, Quantlytica will use AI technology to collect and horizontally compare data on returns, liquidity risks, and security across all DeFi projects. For example, by collecting operational data and updates from social media like Twitter and GitHub, it filters out projects with higher security. Then, it provides customized automated investment strategies to meet various user needs, adapting to different risk preferences.

For instance, the smart dollar-cost averaging (DCA) and AI grid trading strategies set to launch in October can analyze market data in real-time through AI technology, optimizing regular investment or automatically executing grid trading strategies to help investors capture excess returns even in volatile markets.

The Vault investment product launched by Quantlytica in August is one of the passive strategy investment products filtered using AI, allowing users to deposit corresponding assets into various vaults and participate in multiple DeFi yields with one click.

For example, the Ordely PreBTC vault provides liquidity for the liquidity platform Elixir. Users only need to deposit USDC to earn Quantlytica points, along with Elixir points, Ordely rewards, and token rewards from the points platform Coral Finance, effectively allowing them to benefit from multiple sources.

Secondly, Quantlytica's products will embed the AI smart investment assistant QuantGPT, an AI chatbot that provides users with tailored investment advice, assisting in project screening, market analysis, strategy selection, and dynamic liquidity adjustments, thereby simplifying the DeFi experience.

Wesley revealed to ChainCatcher that QuantGPT is expected to launch around October or November and is also collaborating with decentralized computing networks like io.net, planning to launch its own computing model platform in Q1 next year.

Next, Quantlytica will also launch the Fund SDK for strategy creation, providing developers, fund managers, and other market participants the opportunity to build and expand customized investment strategies. This modular, no-code toolbox allows users to assemble or build their own DeFi investment strategies like Lego blocks, enabling them to create, test, and deploy their customized DeFi investment strategies without any coding skills, ranging from quantitative trading, index investing to TVL incentives, and customized DeFi portfolios, transforming users from participants and strategy users into true strategy creators or developers.

Finally, AI-driven risk management will be implemented, with Quantlytica using AI technology to monitor, analyze, and provide risk management based on on-chain data in real-time. It can timely identify smart contract vulnerabilities, fraud, and systemic market risks, ensuring the safety of users' assets. Additionally, users can accurately understand their asset liquidity distribution and integrate their data sources to train customized models to formulate strategies based on specific market conditions and their risk preferences.

Through a series of innovative features and products, Quantlytica simplifies or integrates the complex process of participating in DeFi products into specific intelligent investment strategies, supporting users to engage in multiple DeFi applications with one click, significantly reducing users' research time and allowing even those without any DeFi experience and knowledge to conveniently capture on-chain returns.

Wesley emphasized that Quantlytica is not just a simple asset management tool; it is a liquidity strategy aggregation platform that can provide users with tailored liquidity investment solutions to meet the diverse needs of today's DeFi participants.

Unlike common asset management tools like InstaDapp and DeBank, Quantlytica focuses more on solving the high entry barriers, complex processes, and product selection for users participating in DeFi. It resembles a library of DeFi investment strategies, gathering multiple investment strategies for users to choose from based on their risk preferences or return goals, whereas InstaDapp and DeBank are more like asset trackers and do not provide investment strategies.

He explained with an example: for cross-chain needs, some users may prioritize low fees, while others may want faster transaction times. Quantlytica will recommend different cross-chain bridge products based on users' personalized needs.

50% of Revenue Distributed to veQTLX Holders, QTLX Staking Program to Launch with TGE

On September 13, Quantlytica's native token QTLX officially began its TGE and was immediately listed on multiple exchanges, including Bitget, MEXC, and BingX, attracting widespread attention and investment from the crypto community.

According to official data, the total issuance of the QTLX token is 100 million, with an initial circulation of 78.5 million. Approximately 50% of the total supply, or 50 million, will be used for community incentives (including a 5% airdrop), 20% will be allocated to the team and advisors, 13% will go to the ecosystem fund, 5% will support QTLX token liquidity and market making, 9.5% to strategic investors and early supporters, and the remaining 2.5% will be used for the IDO round.

On September 9, the QTLX token raised 300,000 USDT at a price of 0.2 USDT per token on the IDO platform Enjinstarter.

It is important to note that the 5% community airdrop will not be unlocked at the time of TGE.

QTLX is the core driving force ensuring the normal operation of the Quantlytica ecosystem, with application scenarios covering revenue sharing, community governance, and more. Its token economic model aims to coordinate the interests of all stakeholders to incentivize users to participate in the construction and development of the ecosystem. By providing various practical functions, it attracts users to engage in the governance and development of Quantlytica over the long term.

It has been revealed that on the day of TGE, Quantlytica will launch the QTLX staking feature, allowing users to stake QTLX to obtain veQTLX and initiate lock-up incentive activities, with staking yields potentially reaching 40% to 80%. Ultimately, users can choose to settle their staking rewards in USDT.

The relationship between veQTLX and QTLX is similar to that of "veCRV and CRV." Users can stake QTLX on a 1:1 basis to obtain veQTLX, and holding veQTLX unlocks multiple rights and benefits.

First is revenue sharing, where Quantlytica will allocate up to 50% of its revenue to veQTLX holders.

Secondly, veQTLX holders can participate in protocol governance, voting on important decisions regarding the platform's development and future direction, including proposals related to new features, protocol changes, and ecosystem development.

Additionally, veQTLX token holders can enjoy priority access to VIP features on the Quantlytica platform, such as exclusive access to high-yield reward pools, early unlocking of advanced features, tools, and analyses like SDK functionality integration, advanced quantitative strategies, data analysis services, and yield enhancement services.

Finally, they can participate in Quantlytica's unique insurance pool program, allowing users to purchase insurance to guarantee a certain asset pool yield, avoiding losses due to market fluctuations. For example, if a certain DeFi pool has a yield of 20%, but due to certain factors, the final yield drops below 20%, veQTLX holders can purchase insurance to maintain the yield at 20%.

More importantly, unlike the infinite inflation of common DeFi protocol tokens, QTLX introduces a buyback and burn mechanism. Quantlytica promises to use 20% of its monthly revenue for buyback and burn strategies, systematically reducing the supply of QTLX tokens, creating deflationary pressure, and potentially increasing its rarity and token value.

Bridging the Gap Between Web2 and Web3, Making Fiat Currency Directly Participate in DeFi Investment Possible

After the token TGE, Quantlytica will not only launch the QTLX token lock-up feature and activities but also expand its deployment across multiple chains, such as Base, Polygon, and non-EVM chains like Solana and Ton.

Quantlytica optimizes liquidity allocation across multiple blockchain networks through AI technology and a series of innovative tools and products, providing users with a comprehensive liquidity management solution. It successfully simplifies the participation process in DeFi investment and lowers the entry barriers, making it an innovator in the DeFi investment field. Its diverse product features can cater to users with different experiences and risk preferences.

For new players without on-chain trading experience or professional knowledge, the Quantlytica platform will offer a variety of strategy models for passive participation, such as high-frequency trading strategies, mining strategies, dollar-cost averaging strategies, index investing, and fixed-income strategies. It will also collaborate with quantitative fund strategy companies to develop more products for selection. For experienced high-level professional players with ideas, they can use the Fund SDK toolkit provided by the platform to build their exclusive investment strategies. Additionally, the platform offers a backtesting framework, allowing users to visualize the historical performance of their constructed strategies through the AI database and simulate and predict future performance for strategy optimization.

According to official reports, within just three months of its launch, Quantlytica's community membership has surpassed 250,000, achieving significant milestones with over 1,000 daily active users and an asset management scale of $10 million. The Vault strategy investment product surpassed $1 million in TVL within a week of its launch and currently stands at $2.2 million.

Meanwhile, Quantlytica has garnered cooperation and investment from several leading companies in the industry. On August 8, it announced the completion of €1 million ($1.1 million) in funding, with participating investors including Polygon Labs ecosystem fund, Web3Port Foundation, Eureka Partners, DWF Ventures, Connectico Capital, ZBS Capital, and other well-known crypto capitals from home and abroad.

Regarding the support provided by investment institutions, Wesley stated in the interview that they not only provide capital but also product feedback and strategic introductions. For example, Web3Port assisted a well-known institution in entering the DeFi market through Quantlytica's liquidity automation strategy. They also request their traders to test the Fund SDK and provide feedback.

Wesley revealed to ChainCatcher that Quantlytica also received support from individual investors in its early stages, with the total amount of funding exceeding $1.5 million.

Quantlytica is not just a Web3 project; it aims to bridge the gap between Web2 and Web3, allowing both traditional financial institutions and individuals to participate in Web3. The ultimate vision is to enable users to invest in DeFi protocols directly using fiat currency on the Quantlytica platform, truly eliminating barriers for users entering the crypto world and providing ordinary users with a new way to participate in the DeFi market, while also bringing more vitality and dynamism to the DeFi market.