Allora Network will integrate zkSync to provide cutting-edge AI solutions to the zkSync ecosystem. zkSync is a Layer 2 protocol that scales Ethereum's security and values through zero-knowledge cryptography, aiming to accelerate the mass adoption of crypto for personal sovereignty. Allora is a self-improving decentralized AI network. zkSync is the first large Layer 2 solution to be integrated by Allora and it will enable protocols in the zkSync ecosystem to integrate Allora's AI solutions, such as AI-powered data feeds and AI agents for DeFi.
Over the last 3 years, models built by the Allora Labs team have effectively produced price predictions for more than 400 million assets with a 95-99% confidence for the most accurate predictions. Now, by integrating with zkSync, Allora will provide developers and users in the zkSync ecosystem with access to these powerful AI-driven tools and solutions.
“AI is a critical part of the next stages of technological development, especially in the crypto space,” said Vassilis Tziokas, Head of Enterprise Strategy & Business Development for Matter Labsi. “Allora’s track record of delivering high-quality AI solutions tailored for crypto and their self-improving design will allow builders on zkSync to create advanced applications that will demonstrate what is possible to create on zkSync.”
What Allora AI Solutions the zkSync Ecosystem Will Have Access to
AI-Powered Data Feeds––The open market alone is often too inefficient to accurately price long-tail assets such as small-cap tokens, memecoins, NFTs, and RWAs. However, AI can increase market efficiency by providing accurate pricing for these assets, leading to higher liquidity and transaction volume.
AI Agents for DeFi––Current DeFi primitives are limited and inefficient, struggling to process real-time market information and synthesize the vast datasets that AI can. Platforms on zkSync will be able to outpace existing primitives by leveraging AI to process real-time market data and extensive training data, enabling the execution of highly sophisticated, dynamic strategies.
AnyML––Platforms on zkSync can tap into the collective decentralized intelligence of ML models built on Allora to create AI applications that are always smarter than any single model. Protocols can use AnyML to connect to a vast ecosystem of ML models already building on the Allora Network.
How Different Protocols on zkSync Can Utilize Allora Solutions
Wallets
Wallets in the zkSync ecosystem can leverage Allora's AI models to help users predict scam transactions, more effectively predict slippage and execution prices, and assess token contracts for potential exploits directly through the wallet UI.
Lending Platforms
Allora’s AI agents will help lending platforms on zkSync continuously optimize supplier funds, thereby maximizing capital efficiency and utilization rates. AI-powered risk models can also autonomously monitor for abnormal and potentially exploitive transaction executions. The Allora Network can be leveraged for real-time dynamic LTV ratios and intelligent health factors via AI-powered credit scoring.
Derivatives Platforms
For derivatives platforms on zkSync, Allora can offer highly accurate, real-time price feeds for long-tail markets, which will expand the range of assets derivatives platforms can offer. sophisticated AI models can generate highly accurate real-time price feeds for longtail or illiquid assets such as ordinals, RWAs, and NFTs.
DEXs
DEXs on zkSync can leverage Allora's solutions to significantly improve transaction execution and gas & slippage estimations. Allora’s AI can create intelligent, dynamic fee structures that ensure a specific DEX is always the preferred route for trades, regardless of liquidity, by offsetting slippage with lower fees when necessary to optimize market share in terms of volume. Or, conversely, maximizing fees when there are fewer sources of competitive liquidity available.
Liquid Staking/Restaking Platforms
Liquid staking and restaking platforms on zkSync can benefit from Allora's models to improve risk-adjusted returns by leveraging current and historical data points for effective collateral management. Allora’s predictive ML models provide APY forecasts for LSTs and LRTs, fee forecasts for liquidity pools based on forecasted volume and liquidity, and forecasts for lending rates across various assets, protocols, and chains.
"zkSync has a robust ecosystem with wallets, perp DEXes, launchpads, and lending protocols. But until this integration, those platforms haven’t had easy access to advanced AI,” says Allora Labs Co-Founder Nick Emmons. “Now, developers in the zkSync ecosystem can enter the AI age with Allora’s self-improving solutions."
About the Allora Network
Allora is a self-improving decentralized AI network. It enables applications to leverage smarter, more secure AI through a self-improving network of ML models. By combining innovations in crowdsourced intelligence, reinforcement learning, and regret minimization, Allora unlocks a vast new design space of applications at the intersection of crypto and AI.
To learn more about Allora Network, visit:
Website: https://allora.network/
Twitter: https://twitter.com/AlloraNetwork
Discord: https://discord.com/invite/allora
Documentation: https://docs.allora.network
