Artificial intelligence (AI) has the potential to transform every industry, and blockchain is no exception. Some experts believe that AI and blockchain could have important synergies, where one amplifies the other.
One area where AI is already transforming crypto is trading. AI can analyze an enormous amount of data and find trends in a way that compliments human traders. By making trading more efficient and scalable, AI can theoretically offer better returns to investors.
One area where AI is already making an impact is in arbitrage staking. In simple terms, its AI bot finds profitable price discrepancies across exchanges and DeFi liquidity pools. The bot then makes the trade and pockets the difference, improving liquidity in the process.
To explore the potential of AI in trading, DailyCoin talked to Joseph Emmett, the CEO of an arbitrage trading firm Mosdex. Mosdex uses a proprietary AI algorithm for cross-exchange arbitrage staking, enabling traders to get returns from their Bitcoin and USDT.
How does Mosdex’s AI-powered arbitrage-based staking differ from other staking options?
Mosdex’s AI-powered arbitrage platform is innovative in the staking world as it leverages real-world arbitrage by scanning thousands of market pairs across multiple centralized exchanges (CEX) and decentralized exchanges (DEX). The platform executes trades within milliseconds, capitalizing on price differences and generating profits.
Traditionally, staking operates on a proof of stake consensus mechanism where stakers reserve their tokens within staking protocols, which are then used in consensus to help the network grow in terms of value and consensus. Users are rewarded with a fixed supply reserved for staking.
Can individuals retain custody of their crypto assets while staking with your platform? How do you ensure the security of their assets?
With Mosdex, users have the flexibility to withdraw their funds until they are staked. However, once the funds are locked in for staking, they must be reserved within the Arbitrage Engine for the selected duration, 7 Days, 30 Days, or 90 Days, to execute arbitrage trades within CEX and DeFi protocols. Allowing users to retain custody would make it impossible for Mosdex to conduct arbitrage trading and generate returns for its users.
Ensuring the security of our users’ assets is our top priority at Mosdex. We have implemented a robust security protocol that includes multi-level authorization, blockchain-based logging of all user actions, and backup services provided by authorized companies to monitor and protect against attacks such as DDoS. In addition, we have several other security measures in place, such as secure headers on HTTP request/response, CSRF protection, suspicious user detection, authentication and detection, DDoS attack prevention, secure web services, security audits, and multi-signature wallets for cold wallet security.
Our comprehensive security measures ensure that our users’ assets are protected from all forms of cyber threats. By leveraging cutting-edge technologies, we aim to provide our users with a secure and reliable platform for staking their assets while generating attractive returns through arbitrage trading.
Crypto investors have demanded more transparency and security since the FTX’s collapse. How have you handled the challenge of providing transparency to users?
At Mosdex, we believe in transparency and regulatory compliance. Mosdex is a well-established platform with a presence in the market for over two years. We have proper licensing in applicable jurisdictions and have undergone a third-party audit. You can find the details on our website.
Mosdex operates differently, using Defi and AI-based arbitrage methods to generate the best returns, which are then shared with users as per the PSM model. This ensures decentralization and eliminates the need for investors’ funds to be stored in a single pool, such as Binance Liquidity Pools.
In addition to these measures, Mosdex maintains an open and transparent communication channel with our users through our social media channels and community platforms. Our team is always available to address any concerns or questions that our users may have.
Moreover, our platform has been designed with a user-friendly interface that provides our users with real-time data on their staking rewards, profits, and fees. Also, unless the funds are staked, they can withdraw at any time of their choice. The rewards can also be claimed after 24 hours and can be withdrawn instantly. This way, they have complete control over their funds and can track their investments’ performance.
We are committed to providing our users with a secure and transparent platform for staking their crypto assets. We understand the importance of building trust with our users, and we strive to uphold the highest standards of transparency and security in all our operations.
Mosdex promotes its profit-sharing model (PSM) that boosts rewards for investors. How does that model work?
Mosdex utilizes an advanced version of its proprietary Profit Sharing Model (PSM) to provide even higher rewards to users who engage in cryptocurrency staking activities. The PSM is a sophisticated, AI-powered, automated arbitrage trading system that considers various market conditions, including trading volume, volatility, and other metrics, to calculate daily returns that are adjusted in real-time.
The Mosdex PSM is a dynamic and effective revenue-sharing model that factors in various market indicators, such as staked amount, DeFi-based arbitrage activities executed by the trading engine, trading volume, volatility, and market conditions. This dynamic approach ensures that users receive lucrative daily returns from their staking activities, which are adjusted in real-time based on prevailing market conditions. With the recent bullish trend in the overall crypto market, users can expect even higher rewards than before.
The compensation for staking users may vary based on various factors, such as the number of coins staked by a user, returns from the PSM model, duration of active staking activity, number of tokens staked, and inflation rate. The actual compensation awarded to staking participants is determined by the PSM model at the time of sell-on engagement through the arbitrage robot.
What is your view on the US Securities and Exchange Commission’s takedown of Kraken’s staking services, and how does the precedent affect Mosdex and the centralized exchange landscape?
The SEC’s takedown of Kraken’s staking services highlights the increasing regulatory scrutiny that staking platforms are facing. It is likely that other centralized exchanges, particularly those offering staking services, will follow in Kraken’s footsteps and adjust their offerings to comply with regulations. This could have a significant impact on the centralized exchange landscape as staking has become an increasingly popular way for users to earn rewards on their cryptocurrency holdings.
However, Mosdex has a unique advantage in this situation as its approach to generating profits through arbitrage within trading and DeFi protocols. This is because Mosdex does not rely on conventional staking protocols or proof of stake (POS) based consensus to reserve user assets, which can be viewed as securities by regulators.
This advantage could potentially open up a gateway of new users for Mosdex as they seek alternative staking options that comply with regulations. Mosdex’s innovative approach to staking and its ability to avoid the potential classification as a security may position it as a contender in the evolving staking landscape. However, it remains to be seen how regulations in the staking space will evolve and whether other innovative staking platforms like Mosdex will emerge.
What advice would you give those who have never staked before on getting started and managing their investments?
For those who are new to staking, they should first research and learn about the platforms they are staking on, and the tokens they are selecting to stake. While some platforms and tokens may promise higher APR, they may lose their inherent value over time, causing significant loss to the user. Thus, it is imperative that a user understand the rewards and risks associated with staking.
Furthermore, managing staking investments requires users to regularly monitor their staked tokens and track their daily returns. It is also essential to stay up-to-date with market trends and conditions, as this can impact the daily returns earned from staking. By staying informed and actively managing their staking investments, users can maximize their earning potential and minimize risks associated with market volatility.
Takeaway: Is AI Arbitrage Staking the Next Big Thing?
It is undeniable that AI is constantly opening new opportunities for traders in the crypto space. Platforms like Mosdex have seized that opportunity and enabled the average investor to exploit it.
Traders should always remain cautious whenever handing over custody for promised returns. High returns are often unrealistic in the long run, as no investor can always guarantee consistent returns. In addition, traders should be mindful of platform risk, as deposit insurance does not cover crypto assets. Until more stringent regulations are in place, it is up to traders to exercise diligence when investing.
Read about how AI arbitrage staking could help make DeFi more viable:
Is AI-Powered Staking the Key to Unlocking Liquidity in DeFi?
Read about what institutions are saying about synergies between AI and blockchain:
Davos: Could New Interest in AI Help Boost Blockchain Tech?