Layer-N's AI infrastructure with Modulus Labs.
Layer N aims to be one of the first Ethereum L2s to enable applications with real on-chain AI use cases
Layer N has partnered with Modulus Labs to facilitate AI Functions, offering developers a native and effortless method to incorporate AI inference and use cases within their applications. As one of the pioneering Ethereum L2 platforms, Layer N strives to empower developers with real on-chain AI applications through this collaboration, with several teams already integrating AI Functions. By teaming up with Modulus Labs, a leader in developing ZKML methods for on-chain AI computations, Layer N aims to broaden the possibilities for on-chain development. This partnership will enable rollups in the Layer N network to access AI inference on demand, allowing developers to deploy their own AI models, configure inputs and outputs, and seamlessly integrate AI into their on-chain applications.
After implementing AI functions, several use cases will be enabled to enhance many existing applications:
Arbitration of AI: Protocols can augment their security measures beyond crypto-economic and consensus-based approaches by incorporating an additional layer of security and arbitration, leveraging AI-driven decision-making. Picture a prediction market where AI-based arbitration of event outcomes mitigates the risks associated with consensus collusion or centralized result determination.
AI and Crypto gaming Agent: Outside the realm of DeFi, AI functionalities open up novel opportunities in gaming and the development of autonomous AI crypto entities. Envision decentralized gaming experiences where AI-powered characters engage with players in live interactions, or self-directed agents trading cryptocurrencies according to market indicators.
Replacing AMMs with more sophisticated models: Automated market making (AMM) models typically serve as the primary method for providing liquidity on-chain. Despite their widespread use, these models suffer from inefficiencies. Now, developers have the opportunity to implement advanced models integrated with AI on Layer N, aiming to enhance liquidity provisioning in DeFi protocols. This approach holds promise for addressing challenges like impermanent loss and bolstering liquidity levels.
Yield Optimization Strategies: AI functionalities empower the implementation of advanced yield optimization strategies. Through the analysis of market data and user behavior, developers can devise AI-powered algorithms aimed at maximizing yields for users engaging in diverse DeFi protocols.
In summary, the introduction of AI Functions represents a major step forward in democratizing AI-driven applications for on-chain developers. Through the seamless integration of AI capabilities into Layer N, developers are poised to venture into uncharted territory within on-chain applications.
Various teams are actively developing integration concepts with the AI Functions. Keep an eye out for further updates, and don't hesitate to get in touch if you're interested in building on Layer N.
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