PancakeSwap launches AI-powered prediction market on Arbitrum

PancakeSwap, a multichain decentralized exchange (DEX), has partnered with Alora Network to launch an artificial intelligence (AI)-powered prediction market on arbitrage.

The new prediction market features an AI-driven price feed through Allora.

With Alora's machine learning capabilities, PancakeSwap users can predict Ether (ETH) price movements on Arbitrum.

Chef Gioza, Product Manager at Pancake Swap, explained the decision to partner with Allora in an interview with Cointelegraph.

“Over the past three years, models developed by the Allora Labs team (formerly known as Upshot) have produced price forecasts for more than 400 million properties with 95-99% accuracy in forecasting.”

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How it works

Alora's AI price prediction models predict whether the price of various crypto assets will rise or fall, which users can use to aid their trading choices.

The payment process is driven by AI accuracy, adjusting as the AI ​​performs over time as users make predictions on the construction market.

Gyoza summed up the new prediction market by saying:

“Pancake Swap users can follow or defy AI prediction. With AI performance in our tests and a record of around 65% accuracy, users have to choose when to challenge the AI, which naturally has higher odds.

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Prevention of exploitation

On the subject of market manipulation and users using the new prediction market feature, Gioza added:

“Users can track all round history, price feed history and AI forecast history through the history tab on the forecast page. All results are also verified on-chain via our forecast v2 contract.

Gyoza explained that AI predictions are only given after rounds are locked, which prevents cheating because “users don't specify positions.”

As a new market feature, Gyoza expressed PancakeSwap's opinion on the potential impact of the prediction market on the volatility and volatility of the platform.

“As it is an early stage product, we don't think it will have a big impact on the market. However, as a partner with Allora, we believe we can expand the forecast to many other markets, both domestically and internationally.

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PancakeSwap turns to AI.

PancakeSwap recently announced that it is gearing up to launch CupcakeHop, an AI-powered portfolio management tool developed by Brill Finance.

This new tool, which debuted in August, is designed to provide customized investment strategies and real-time risk management to a wider audience.

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