PancakeSwap, a decentralized cryptocurrency exchange, will launch CupcakeHop, a portfolio management tool driven by artificial intelligence (AI). The technology, created by Bril Finance with support from PancakeSwap, aims to enhance the management of investments in decentralized finance (DeFi).CupcakeHop, scheduled for release in August, intends to provide real-time risk management and customized investing strategies to a wider user base, hence enabling DeFi.
Connor O’Shea, the CEO of Bril Finance and the creator of CupcakeHop, stated in a Cointelegraph interview that the AI portfolio management tool automates investing methods based on a user-defined goal and current market conditions.
“It’s continually adjusting strategies to optimize performance with the intended purpose of maximizing returns.”
In order to guarantee the security of user-deposited assets, the new tool has a risk engine that will recognize and isolate possible hazards and automatically rebalance pools. Speaking with Cointelegraph, O’Shea made a prediction on the inclusion of a risk management slider aspect.
“What I envision is effectively a risk slider that’s proportional to return. If you’re a user, you come in, and you get three buttons: high risk, medium risk, or low risk. And then, for each of those, we could have a return profile.”
O’Shea clarified that the slider tool’s goal would be to “make DeFi more approachable, especially for newcomers.”In a lighter vein, O’Shea compared the functioning of the slider concept to the firing sequence of a nuclear weapon as he wrapped up the discussion.
“I’m thinking about putting a plastic cover over the high-risk button. You have to, like the nuclear launch code, lift the plastic lid to press the red button on the high-risk.”
CupcakeHop aims to address the issue of reporting accuracy by offering users clear and precise information about their investments.
“A lot of the numbers that you’ll see on dashboards and external reporting don’t actually match the tokens that are deposited into a user’s wallet. […] we’re trying to make sure that users get an accurate depiction of what’s going on.”
During the last quarter, Bril Finance’s average monthly trading volume exceeded $27 million, and since late March, the total has reached $82.6 million.