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SingularityDAO, a well-known decentralized portfolio management protocol in the DeFi ecosystem, is embracing tokenized real-world assets after forging an alliance with Cogito Finance.
The partnership will see SingularityDAO’s artificial intelligence-powered v2 DynaVaults add support for RWA, in a move that should make traditional assets more accessible to DeFi users.
Created by the decentralized AI marketplace SingularityNET, SingularityDAO is a DeFi management protocol that uses AI algorithms to optimize asset management on behalf of users, so they can better balance their crypto portfolios. Using its platform, investors benefit from advanced risk management capabilities, which can be tailored to the level of risk they’re personally willing to tolerate.
The advantage of SingularityDAO is that those who’re prepared to make high-risk gambits can do so at the best possible odds, while more cautious investors can maximize their profits while ensuring their capital is safe.
As for Cogito Finance, it’s a spin off from SingularityNET that provides a reliable mechanism for bringing real-world assets on-chain. It also offers a range of AI-powered investment products for users, including its GFUND, TFUND and XFUND smart contract vaults, which tokenize fixed-income assets and equities so they can be traded on the blockchain. Cogito was built to overcome some of the key challenges in DeFi, including unsustainable yield farming and regulatory uncertainty.
With Cogito, tokenized RWAs are ERC-20 tokens that live on the Ethereum blockchain, utilizing Layer-2 networks such as Aribtrum, Base, Optimism and Polygon to process rapid transactions off-chain with lower fees. Its RWAs are backed 1:1 to the underlying physical asset.
The integration means SingularityDAO’s users will be able to access the complete portfolio of RWAs offered by Cogito, catering to one of the fastest-growing segments within the DeFi industry.
It’s an important development considering the enormous potential of RWAs, which promise to bring trillions of dollars’ worth of traditional assets, such as tokenized U.S. Treasury Bills, onto the blockchain. If RWAs really take off, they will inject an unprecedented amount of capital and liquidity into the DeFi space, paving the way for decentralized protocols to become the gold standard for financial asset management and trading.
The huge potential of RWAs explains why SingularityDAO is so keen to embrace them and, indeed, help to accelerate their adoption, by making them available to investors via its automated asset management protocol. With the integration, SingularityDAO’s users will be able to access Cogito’s TFUND, GFUND and XFUND offerings, which provide low-, medium- and high-risk investment strategies for RWAs.
In addition to these products, SingularityDAO will soon launch a series of dynamic vaults that promise a way to earn yield on Cogito’s tokenized traditional assets, it said.
SingularityDAO’s co-founder Mario Casiraghi framed the partnership as one that extends the protocol’s wider mission of providing access to open finance across every market. He believes it will be an enticing prospect because it paves the way for cautious investors to “trade RWAs within a compliant framework.”
His enthusiasm was shared by Cloris Chen of Cogito Finance, who stressed that the convergence results in a holistic financial solution that will bring “institutional-grade, low-risk, and sustainable investment options” to a much wider audience.
“SingularityDAO’s expertise in decentralized financial access will ensure a truly permissionless approach, which perfectly aligns with Cogito’s mission to make tokenized RWAs more accessible, secure, and efficient for all market participants,” he added.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
