The Foundations of AI-Fi: The Rise of Singularity Finance
Cogito Finance, SingularityDAO, and SelfKey have proposed a strategic merger to form Singularity Finance, a new EVM-compatible Layer 2 blockchain designed to tokenize real-world assets (RWAs) within the growing AI economy.
By integrating our complementary technologies, we're setting the stage for a platform focused on tokenization of AI assets - like GPUs - and their integration into existing DeFi applications. This will create new financial instruments onchain, unlocking more efficient funding channels for AI-driven innovation.
Singularity Finance will bring AI-focused RWAs onchain through Cogito's tokenization framework, creating decentralized markets where users can easily participate, supported by SelfKey's compliant identity solutions. The Layer 2 platform will also offer AI-powered financial services, enhancing and automating things like portfolio analysis and risk management, leveraging SingularityDAO's AI-driven DynaVaults.
Cogito’s Tokenization Framework
By leveraging Cogito’s established infrastructure, Singularity Finance will offer a scalable and reliable framework to help institutions seamlessly transition real-world and AI-related assets onto the blockchain. It will facilitate the creation of fully compliant tokenized funds, ensuring security, transparency, and liquidity for retail investors and institutions. The platform manages the tokenization process, from onboarding and compliance to token issuance, secondary market trading, and value tracking. This enables institutions and asset holders to engage with new on-chain markets while adhering to regulatory standards.
Singularity Finance will tokenize AI-related financial assets. Cogito’s framework includes a Segregated Portfolio Company (SPC), which allows Singularity Finance to launch multiple tokenized funds. The setup provides several key safeguards for users, including:
- Full Compliance: The Segregated Portfolio Company is registered as a Mutual Fund, regulated by the Cayman Islands Monetary Authority, and adheres to all relevant regulations.
- Offchain Custody: The underlying financial assets are securely stored off-chain with a trusted custodian, shielding them from on-chain risks like hacking or de-pegging. Additionally, the fund's legal structure as a standalone investment vehicle ensures it is bankruptcy-remote from Singularity Finance.
- Independent Oversight: The fund collaborates exclusively with licensed, independent service providers, adding a layer of governance and oversight.
As tokenization continues to gain momentum, it fits seamlessly into the broader vision of an AI economy, where AI, data, and real-world assets are integrated into decentralized finance (DeFi) applications. This is where the concept of AI-Fi comes to life.
AI-Fi: The Future of Tokenized AI Assets
Artificial Intelligence has emerged as a transformative force in recent years, reshaping industries and economies globally. Generative AI models drive rapid changes across sectors, with organizations increasingly leveraging AI to enhance operational efficiency. Beyond optimizing existing processes, AI fuels innovation and creates new markets. This surge in AI adoption has triggered unprecedented demand for resources, with data center construction expected to exceed $303 billion by 2030 and power demand potentially increasing by 200 TWh due to the computational intensity of AI workloads.
However, the rapid growth of AI presents several challenges, including high entry barriers due to the substantial capital and expertise required, a concentration of capital among large corporations like Nvidia, and limited opportunities for smaller players and the general public. AI-Fi (AI Finance) seeks to address these challenges through a financial framework that tokenizes AI-focused assets. It offers innovative monetization strategies, network rewards, and integration with other DeFi protocols, creating new onchain financial instruments and streamlining user experiences.
AI-Fi represents a tokenized AI economy where AI-related assets can be easily integrated into DeFi systems. These tokenized assets will create new on-chain financial instruments that can be traded, staked, or used to generate returns through decentralized financial services. By combining AI and DeFi, Singularity Finance is breaking down the barriers of traditional capital markets, offering greater access to the AI economy.
Leadership of Singularity Finance
Once the merger is complete, a leadership council will oversee Singularity Finance’s operations, led by:
- Dr. Ben Goertzel, CEO of SingularityNET and the Artificial Superintelligence Alliance
- Cloris Chen, CEO and Co-Founder of Cogito Finance
- Mario Casiraghi, CFO of SingularityNET and Co-Founder of SingularityDAO
Cloris will serve as the CEO of Singularity Finance, bringing her extensive experience in DeFi and traditional finance. She holds two Master’s degrees in economics from HKUST and computer science from the University of Pennsylvania. She has previously held leadership positions at HSBC as vice president and a unicorn startup as treasury director. Being a CFA charter holder, Cloris’s deep understanding of financial markets will guide Singularity Finance as it leads the AI-Fi movement, offering innovative solutions to the challenges that have historically limited AI democratization. She is also a renowned Forbes contributor.
Tokenomics
As part of the merger, the existing tokens—SDAO, CGV, and KEY—will be converted into a unified token, SFI, which will serve as the network token for Singularity Finance. Initially, SFI will be available on Ethereum and BNB Chain, with the mainnet launch planned for the first half of 2025. The token conversion rates for the migration to SFI are as follows:
- SDAO will convert to SFI at a ratio of 1:80.353 (1 SDAO = 80.353 SFI)
- CGV will convert to SFI at a ratio of 1:10.890 (1 CGV = 10.890 SFI)
- KEY will convert to SFI at a ratio of 1:1 (1 KEY = 1 SFI)
This process will result in an initial supply of 24,925,237,117 SFI tokens.
These ratios are based on the 200-day moving average of each token up until 20th August 2024.
The Future of AI and Tokenization
As the AI economy grows, tokenization will be essential in expanding access, creating liquidity, and fueling innovation. Singularity Finance’s new blockchain platform is set to lead this transformation. By merging AI with DeFi through tokenization, the company is building a more decentralized, inclusive, and transparent AI economy.
About SingularityDAO
SingularityDAO is a decentralized Portfolio Management Protocol designed to democratize access to sophisticated crypto asset management tools. The upcoming DynaVaults, multi-asset, multi-strategies vaults leveraging AI-enhanced analytics and risk management tools, will provide the much-needed infrastructure in the volatile world of DeFi.
About SelfKey
SelfKey is a blockchain-based identity platform that enables individuals and organizations to securely manage and control their digital identities, enhancing compliance with KYC requirements through decentralized technology. With a team experienced in decentralized identity since 2014 across major companies, SelfKey aims to revolutionize the KYC onboarding process by lowering costs, improving security, and upholding the principles of self-sovereign identity.