Fetch.ai Launches AI-Powered Trading Tools for Decentralized Exchanges (DEX)
Fetch.ai, a U.K.-based firm specializing in artificial intelligence (AI) tools for crypto, has announced the launch of a suite of enhanced trading products for decentralized exchanges (DEX). The company aims to enable peer-to-peer transactions between decentralized finance (DeFi) users through the use of AI-powered “agents” to execute trades based on user-defined parameters. The suite of trading tools is expected to be rolled out later this quarter.
According to CEO Humayun Sheikh, users will submit their orders to an agent, which will then put it in escrow or an atomic transaction while it determines where it can do the order matching. The platform’s ability to find and create liquidity is where it comes into its own, with agents working together to create decentralized order books.
One of the key advantages of Fetch.ai’s approach is the absence of a liquidity pool, which is the mechanism typically used by DEXs to facilitate quick and efficient trading. The lack of a trove of coins means there is no target for hackers to exploit.
By focusing on individual agents, Fetch.ai hopes to address the risks associated with the smart contract at the heart of a DEX being exploited or the developer promoting a new project disappearing with users’ money in a rug pull. The agents use their own smart contracts to carry out users’ instructions, making it much harder for a hacker to compromise the system.
“A hacker would have to hack every single agent. They couldn’t just hack the central smart contract because there isn’t one,” Sheikh explained.
Crystal Blockchain, an analytics firm, reported that almost $120 million in crypto was stolen across 19 different breaches as of last month, with most involving attacks on vulnerabilities in the code and design of decentralized protocols. Such thefts are not only directly damaging to the victims, but also detrimental to the confidence and the potential for further adoption of DeFi. Fetch.ai hopes to tackle this by providing an alternative paradigm for how the ecosystem can operate.
Benefits of Fetch.ai’s Trading Tools for Decentralized Exchanges (DEX)
Fetch.ai’s AI-powered trading tools for DEX offer a number of benefits:
- Increased security: By using individual agents, the risk of a smart contract being exploited or a developer running off with users’ money is greatly reduced.
- Greater efficiency: The platform’s ability to find and create liquidity means users can trade quickly and efficiently, without the need for a liquidity pool.
- Enhanced confidence: By providing a more secure and efficient way to trade on DEX, Fetch.ai hopes to increase confidence in the DeFi ecosystem and encourage further adoption.
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