In an effort to tokenize AI assets and incorporate them into DeFi, SingularityDAO has merged with Cogito Finance and SelfKey to establish Singularity Finance.
Forming a new entity known as Singularity Finance (SFI), SingularityDAO has announced a token merger with Cogito Finance and SelfKey. This collaboration aims to tokenise real-world assets (RWAs) in the AI economy and incorporate them into decentralised finance (DeFi) infrastructure, thereby achieving a significant advancement in AI-Fi, the confluence of AI and DeFi.
SingularityDAO’s SDAO token experienced a substantial increase in value subsequent to the announcement, which served to emphasize its critical role in the new venture.
Singularity Finance will be a Layer-2 protocol for the Ethereum Virtual Machine (EVM) that develops infrastructure to tokenise AI-related assets and connect them to the broader DeFi ecosystem. This merger combines the capabilities of SingularityDAO, Cogito Finance, and SelfKey to establish a comprehensive platform for the expanding AI economy. SFI will be the network token for Singularity Finance, and each company’s token will be converted into it.
Mario Casiraghi, co-founder of SingularityDAO, underscored the significance of integrating AI and DeFi, asserting that this is the source of a significant amount of innovation in Web3. By tokenizing its value chain, AI-Fi capitalizes on the potential of AI to innovate new methods of accessing, exchanging, and monetizing these assets.
The tokens of each associate will have a distinct conversion rate into SFI. For instance, the KEY token from SelfKey will be transferred at a 1:1 ratio, whereas the CGV token from Cogito Finance will be converted at a slightly higher than 1:10 ratio. In accordance with the relative valuations of the merging tokens, SingularityDAO’s SDAO will convert at a rate exceeding 80 SFI per unit. SDAO’s price experienced an initial surge subsequent to the announcement; however, it ultimately forfeited a significant portion of its gains.
A leadership council consisting of three members will supervise the implementation of the new protocol. Two positions are designated for employees of SingularityNET and SingularityDAO. This leadership structure will serve as a guide for the platform as it endeavors to establish infrastructure for tokenizing AI-related assets and to further augment the DeFi landscape.
Over the long term, Singularity Finance intends to expand the availability of AI-related investments and establish the foundation for a novel digital economy. By combining AI and DeFi, the platform aspires to create profitable markets for both consumers and institutional investors, thereby rendering AI a more monetizable and accessible asset class.
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