In the volatile realm of cryptocurrency, selecting the right assets and achieving a well-balanced portfolio poses significant challenges. Many traders find themselves struggling to navigate these complexities, leading them to seek AI-based solutions. However, numerous platforms fall short of delivering real results, overshadowed by the noise of empty promises.
Amidst the hype surrounding AI in the DeFi ecosystem, only a few platforms truly harness its potential to revolutionize portfolio management.
Meet Archimedes, Mozaic's groundbreaking AI tool that stands out from the crowd. Unlike those who merely use AI as a buzzword to attract attention, Mozaic has invested substantial efforts in training Archimedes with historical data. This strategic move enables Archimedes to make informed and optimal decisions for the future, setting it apart as a leading AI tool in the world of DeFi.
Archimedes emerges as a beacon of hope with tangible results. By crunching massive amounts of data spanning over five years across diverse markets, Archimedes excels in suggesting highly profitable and hyper-efficient portfolio balancing strategies. Its AI prowess is not just a veneer but a genuinely transformative force driving impressive returns for users.
What is Archimedes?
Archimedes is a tool that optimizes yield farming for its users, ensuring that they get the best returns from their investment in the Mozaic protocol. It basically cuts out all the yield loss that users might suffer from, such as loss due to transaction fees and other risks that arise when users want to move their positions across different yield farms. Effectively, Archimedes is a 24/7 highly reliable, redundancy-minimized portfolio management tool that consistently improves over time. It is trained with the team’s existing trading knowledge to actively manage even the protocol-native governance tokens for maximizing profits.
Archimedes follows a three-step process to ensure maximum returns for Mozaic’s depositors.
- It rebalances the deposited assets in the vault, so it can
- Allocate those funds in a way that helps net the highest APY, which further
- Compounds the net deposits of users (subject to the highest-yielding opportunities of the hour).
USP
Mozaic’s Archimedes is an innovative AI tool that has been trained on per-block historical data extracted from over 380 markets. This makes it a highly efficient tool that can draw out predictions for assets (based on several metrics) and optimally allocate users’ funds for the highest returns.
Archimedes is perhaps one of the only tools that is built by a team of experts that have decades-long combined experience of trading across various markets. Mozaic’s strategies help it stand apart - hell, there’s not even any competition yet! - and make for an innovative tool that can be used by anyone to maximize their returns in DeFi.
Extracting data
To ensure that Archimedes runs well and delivers optimal performance for its users, the Mozaic team has set up its algorithms to extract per-block and coin price data through one-minute feeds. By doing so, portfolio rebalancing is made more efficient (as farming different protocol’s governance tokens and selling them in a highly volatile market requires the tool to be up-to-date with the changing prices at the minute).
Extracting block-by-block data has been one of the hardest things for Mozaic to do because no data extraction tool/company was willing to provide that data - think extracting per-block data across various chains for various pools; it is a ferociously difficult challenge to overcome!
Thus to build Archimedes the way it exists and functions today, the team made several iterations. The first version was trained on a daily timeframe and it seemed to work really well. However, given the volatility of the crypto markets, they reduced that to an hourly timeframe. Furthermore, they extracted data for the past five years over - as mentioned above - 380 markets for a 1-minute timeframe to get the granular data they were looking for.
Mozaic is also one of the first protocols to be accepted into Google Cloud’s Web3 Startup program! Since the Mozaic team is training Archimedes with different pools and historical data, it is sharpening its ability to choose the best possible portfolio allocation for different yield farming strategies across different chains.
How Archimedes works
One of the most critical details that helps Archimedes stand apart is that it analyzes specific pool data:
- Average amount of liquidity for a certain period
- Average amount of rewards emitted for those periods,
- Average price of the reward tokens
This helps inform more astute APY predictions using raw data. In addition to this, there are other metrics that help predict the APY such as:
- Token prices
- Fees
- Slippage
- Time
- TVL
- Error rates, and more
- Price data, pool data, volume data, maker/taker volume (future plans to extract as much data as possible)
All of these factors are taken into consideration in a secure off-chain environment to ensure that these strategies are not easily replicated. To achieve trustlessness while working in this off-chain environment, Mozaic has partnered with one of the leading zero-knowledge players in the space, Modulus Labs.
Omnichain Interoperability
Since Mozaic is an omnichain protocol (thanks to LayerZero), Archimedes can manage portfolios with assets invested across 21+ blockchains! This is further aided by Zaps, which enable any token to be transferred from any chain to Mozaic Vaults - without needing them to be bridged across chains. This also saves on gas costs associated with bridging!
Initial Simulations
Mozaic collects per-block information about coin prices and other metrics to train Archimedes. Due to varying update frequencies across different chains, extracting block-by-block data and per-minute token price data is essential. This enables the effective selling of native protocol tokens and ensures the best portfolio performance.
In an initial theoretical testing of Archimedes, it balanced Mozaic’s stablecoin vault
(farmed on cBridge) portfolio on Avalanche for five days, Ethereum for four, and on
Optimism, Polygon, Fantom, and Ethereum (alternatively) for five days
During this time, Archimedes captured 27% of the yield spikes on AAVE as well. Mozaic’s omnichain stablecoin vault captured a 19.02% yield daily. If, however, the users had left their assets in alternating best-performing vaults over the same period they would have only made a return of 13.98%.
During practical testing on Stargate staking pools, Mozaic demonstrated superior performance compared to an active trading strategy that rebalances the portfolio daily, showing a 16.2% outperformance. Additionally, when compared to a long-term portfolio approach, where investors buy and hold assets for several months to years, Mozaic outperformed by an impressive 56%.
What’s the Alpha? 👀
The Genesis vault that Mozaic is launching is known as the Hercules Vault which accepts stablecoins such as USDT, USDC, DAI, and FRAX and (thanks to Stargate Finance) Mozaic protocol will extract the best returns by yield farming across five different chains:
Arbitrum, Optimism, Binance Smart Chain, Avalanche, and Polygon!
Mozaic’s Hercules is their flagship product that they will soon launch. The vault will have a TVL cap of $1M upon launch and will offer a 15% APY (with incentives).
There will also be a 15% performance fee on this vault. The protocol also plans to launch other vaults in the future. For the first three months after the launch, 35% of the fees generated from the protocol will be utilized to boost Genesis Vault APY.
There will also be a “fee-free” period for a few months after the public launch.
The Genesis Hercules vault will offer superior returns to users as it will:
- Rebalance assets hourly for the highest APY,
- Compound on investments automatically,
- Remove any losses due to individual transaction fees,
- Save costs on time,
- Provide access to multi-chain yield!
The vaults on Arbitrum will accept deposits in $ARB, $GRAIL, $GMX, $MAGIC, $ETH, and $USDT. The final list of accepted deposits will be shared soon.
Community Participation Rewards
Community members can now complete missions on Mozaic’s Galxe page where they currently have their pre-launch campaign going on. This can be accessed here.
Mozaic have also teased their omnichain NFTs within their Discord. Note these NFTs are hand-drawn by Tyler Miles Lockett.
Borrowing against vault LP tokens
Users who deposit to the Hercules protocol will receive mozStable, which acts as a ticket or representation of their share of the vault. mozStable holders can further deposit their tokens as collateral on Tapioca and borrow other assets against it. Thanks to the omnichain capabilities of Mozaic, users will be able to borrow cross-chain loans as well!
Security and Audits
Mozaic Finance has been audited by Trust Security, an emerging smart contract auditing firm for new DeFi projects. In the audits, over 80% of the findings are only low- or medium-level security issues. This is a testament to Mozaic’s commitment to building a highly resilient product!
Closing Thoughts
Mozaic Finance is perhaps the only underdog DeFi protocol that has hacked its way to optimal growth within a few months of its launch announcements. The vault hasn’t even launched yet and the amount of interest that Mozaic is garnering from the entire DeFi ecosystem is commendable. They have even been listed on Arbitrum Portal!
Mozaic has been committed to building a highly secure and reliable tool that delivers on its claims. As such, the team focuses on doing capped launches (with capping at $10K at the beginning for their vaults and then slowly extending that to $1M). It is only when they are highly convinced of the product they’ve built that they roll it out to the masses.
Moreover, they are also painstakingly cautious of the pools they use for depositing their assets - often first by critically reviewing them against a set criteria and only then whitelisting them.
Archimedes is a giant that is yet to be unveiled to the wider DeFi market. Its ability to allocate funds effortlessly (and without any yield loss) across multiple chains is what future-proofs it against competition.
In a landscape where genuine AI-driven performance matters, Archimedes offers the edge that discerning investors seek. It proves that AI can indeed be a game-changer when utilized with dedication and purpose, making Mozaic a trailblazer in the DeFi space. With Archimedes at the helm, investors can confidently navigate the complexities of the crypto market and set sail towards a horizon of optimal returns. 🚀
