AI in Levva

This section outlines how AI technology enhances various aspects of the Levva protocol.

Personalised AI Co-Pilots

Levva's AI-driven approach combines detailed market analysis with personalised user interaction to create a seamless, intelligent investment experience.

Individual Portfolio Managers

Each user's vault comes with a dedicated AI co-pilot that serves as both a portfolio manager and a trusted advisor. These AI agents hold management role access to user vaults and can execute various on-chain actions, including deposits, withdrawals, rebalancing, and protocol interactions. The co-pilot operates within strict security parameters and risk management frameworks defined by the user's preferences.

Context-Aware Decision Making

Personalised agents maintain contextual awareness of both market conditions and user behaviour. Agents analyse historical data, track current market trends, and understand individual user preferences through a combination of direct interaction and systematic on-chain data analysis. This dual awareness ensures that investment decisions align with both market opportunities and user goals.

Adaptive Risk Management

Levva's AI copilot implements a scenario-based risk management framework. It continuously monitors various risk factors specific to DeFi, including smart contract risk, protocol risk, and liquidity risk, adjusting portfolio allocations accordingly. This framework, inspired by traditional risk management simulation-bases systems but tailored for DeFi. It helps to anticipate and be prepared for different market scenarios.

Market Intelligence System

Advanced Analytics Engine

Our AI system processes vast amounts of market data to generate actionable insights. This includes calculating key statistical metrics such as expected returns, volatilities, and correlations, among others. The system also tracks liquidity distribution across supported protocols to optimize transaction routing and minimize slippage.

Protocol Health Monitoring

AI agents constantly monitor the health and performance of integrated DeFi protocols, tracking metrics like TVL, utilization rates, and historical reliability to inform allocation decisions and risk assessment.

Multi-Agent Security System

Consensus-Based Decision Making

Levva employs a multi-agent system where different AI instances cross-validate important decisions. This approach, inspired by RLHF (Reinforcement Learning from Human Feedback), creates a system of checks and balances where agents provide feedback on each other's decisions.

Anomaly Detection

Multiple AI agents work together to detect unusual patterns or potential security threats, providing an additional layer of security for user funds. This includes monitoring for suspicious transaction patterns, unusual market movements, or potential protocol vulnerabilities.

Automated Auditing

AI agents continuously audit each other's actions and decisions, maintaining a transparent record of all portfolio management activities and ensuring compliance with user-defined parameters.

User Experience Enhancement

Intelligent Onboarding

AI agents engage new users in natural language conversations to understand their investment goals, risk tolerance, and DeFi experience level. This information is used to create personalised portfolio strategies and educational conversation paths.

Emotional Intelligence

Our AI system adapts its communication style based on user interaction patterns and emotional context, providing support and guidance in a way that resonates with each individual user.

Portfolio Insights

AI agents generate regular, personalised insights about portfolio performance, market opportunities, and risk factors, presented in a clear, accessible format that helps users understand their investment decisions.

Market Analysis and Adaptation

Narrative Analysis

AI agents monitor crypto social media and news sources to identify emerging trends and narratives that might impact market dynamics. This information is used to adjust portfolio strategies proactively while maintaining alignment with user risk preferences.

Volatility Forecasting

While we maintain a balanced approach to predictive analytics, our AI system incorporates volatility forecasting as one of many factors in portfolio optimization, helping to anticipate and prepare for market volatility.

Liquidity Flow Analysis

AI agents track and analyse liquidity movements across DeFi protocols, helping to optimize entry and exit points for various positions and ensuring efficient capital deployment.

Future Directions

Cross-Chain Intelligence

We're developing AI capabilities to analyse and optimize opportunities across multiple blockchain networks, providing users with truly comprehensive portfolio management.

Advanced Optimization Techniques

Research is ongoing into incorporating advanced AI techniques such as context-aware graph neural networks for better understanding of DeFi protocol interactions and market dynamics.

Decentralized AI Governance

Future development will focus on creating a more decentralized AI system where the community can participate in training and governing the AI agents while maintaining security and reliability.