The hardware layer serves as the backbone of AI, providing the essential processing power needed for the inference and training of AI models.

Data centres consist of a bespoke setup of land, energy sources and hardware assets such as graphics processing units (GPUs) and central processing units (CPUs) to fulfil the required computation demand. The recent exponential increase in demand for compute has opened a lucrative yield-generation opportunity in the area. Artificial Superintelligence Alliance (ASI) members SingularityNET and Fetch.ai are both investing heavily in data centres, while Cudos provides a decentralised marketplace for AI compute for data centres worldwide to access compute on the blockchain.

Applications are AI-powered software solutions that deliver value to end users. They leverage foundation models and platforms to perform data analysis, automation, and decision support tasks.

This layer caters to the end users and comprises applications and software solutions that deliver direct value to consumers. These applications leverage AI models and platforms to provide users with a scalable and reliable service. With the rise of Gen AI, we have seen significant applications of these services in various sectors ranging from healthcare to finance. Even traditional human-reliant services like call centres are moving towards AI-driven communication. In the Web3 space, Fetch has been a leading figure in the area with its agent framework. We also see a few players, such as SingularityDAO, NumerAI, and Wisdomise, in the DeFi space.

Model hubs are platforms for developers to share, discover, and access AI models, promoting collaboration and accelerating AI development. Hugging Face is one of the biggest platforms for foundational models. However, we also see similar platforms in the Web3 space, with SingulairtyNET's AI marketplace and Fetch.ai’s AgentVerse, which allow developers to publish their models and services for other users to consume.

Tokenisation, like the internet's transformational impact, has the potential to change the way we view and interact with assets, ushering in a new era of business models. This, in finance circles, has been defined as a ‘killer use case’ by the likes of Citigroup, and is speculated to be the gateway to mass adoption of cryptocurrencies and blockchain technology, with BlackRock further highlighting this as the ‘fastest-growing tech in years’, outpacing historical adoption rates of major innovations like the internet and mobile phones.

Tokenisation of real-world assets is in fact rapidly emerging as a disruptive force in finance, with experts estimating that the tokenised asset market could exceed $16 trillion by 2030, representing 10% of global GDP according to research from Boston Consulting Group.

The AI economy in particular, offers a tremendous possibility for tokenisation, with global AI sector revenue anticipated to reach $1.8 trillion by 2030.

As a result, we propose a merger in which the talents, technology, and resources of Cogito Finance and SingularityDAO unite to become Singularity Finance, a powerhouse in both tokenisation and AI-powered financial sectors.

Platforms are cloud services that provide access to hardware and development tools. In the Web2 space, we see various providers such as Amazon AWS, Microsoft Azure, Google GCP, etc., that allow users to leverage their platform to access compute power and run their applications. In the Web3 space, a more decentralised approach is fast emerging as the more accessible and cost-effective alternative.

Tokenised platforms represent a stake in decentralised computing protocols, such as those offered by Cudos and NuNet. Thus, creators can easily rent out servers and create on-demand virtual machines to run their models and applications.

This layer includes professional services, consulting, and support for integrating AI into business operations. Consulting services provide core support to traditional organisations, allowing them to adopt AI or turn around their businesses. In the Web3 ecosystem, we see similar models, such as the Singularity Venture Hub (SVH), providing expert services to Web2 and Web3 companies. Moreover, SingularityNET and Fetch.ai also provide specialised services for companies to make them AI-ready.

The three pioneering companies, SingularityDAO, Cogito Finance, and SelfKey, aim to join forces, combining their complementary technologies with the aim to launch an EVM Layer-2 designed to tokenise and integrate critical segments of the AI economy.

Each company offers unique strengths:

• SingularityDAO: A decentralised portfolio management protocol designed to democratise access to advanced crypto asset management tools. As a key player in the Artificial Superintelligence Alliance (ASI) and SingularityNET ecosystem, SingularityDAO has positioned itself as the central hub for decentralised finance. A core tenet of its mission is user empowerment and accessibility, emphasising the importance of making AI-driven financial opportunities available to all through a non-custodial platform. SingularityDAO stands at the forefront of revolutionising finance through decentralisation and AI with their upcoming AI-driven DynaVaults.

• Cogito Finance: An SingularityNET ecosystem company that brings traditional assets onchain for increased liquidity, security, and transparency. Cogito Finance has set up a regulatory and technological framework for RWA tokenisation, with U.S. Treasury Bills currently onchain and more tokenised products in the pipeline.

Foundation models are large-scale, pre-trained AI models, trained on a large set of data, that can be fine-tuned for specific tasks. They significantly reduce development time and resources by providing a robust general-purpose model for building applications. OpenAI's GPT-4, Google's Gemini, Facebook's Llama, etc., are a few examples of Web2 LLM models. However, these models are not only trained on text but also extend to audio and images, providing an opportunity to build a truly multimodal application. In the Web3 space, SingularityNET is at the forefront of building foundation models, with being a leading example of a fully decentralised AI framework being developed within the blockchain space.

The advent of a new financial model known as DeFi (Decentralised Finance) marked a paradigm shift that introduced permissionless, onchain financial services freely to all who had access to the internet. However, this innovation came with inherent risks. For example, a significant number of DeFi tokens lacked tangible backing, which resulted in extreme price volatility, speculative bubbles and challenges in fundamental valuations.

Cue tokenisation of real-world assets: a process within which traditional offchain assets are brought onchain, with the most prevalent example being fiat-backed stablecoins. This became a dominant trend with various asset classes following, such as commodities, real estate and other financial assets. Yet one of the most promising applications of tokenisation is now emerging in the AI sector, giving rise to AiFi (AI Finance)—a new financial framework centred around AI-focused assets and AI-driven services.

This new business model brings both tangible and intangible RWAs onchain, spanning from GPUs and data centres to APIs and cloud services.

AI-Fi taps into the vast potential of the AI economy by tokenising a diverse range of AI-related assets, creating opportunities for global markets to exchange and monetise these assets. Thanks to tokenisation, ownership and liquidity of datasets, compute power and other AI-related assets are enhanced, opening up new onchain markets in the rapidly expanding AI sector. It also serves to bridge the gap between artificial intelligence and decentralised finance, allowing for unprecedented monetisation opportunities.

Tokenisation sees the perfect marriage of new and traditional assets with the blockchain, offering a myriad of potential benefits while adapting to a new emerging technology that is set to change the business landscape once more.

"Generative AI is the largest TAM expansion of software and hardware that we've seen in several decades."

— Jensen Huang, President and CEO of Nvidia- Q3 2024 earnings call

Over the last few years, artificial intelligence (AI) has evolved into a transformative force having the potential to disrupt industries and economies around the world. The rise of generative AI models has impacted almost every sector, with organisations rapidly adapting to the change to enhance their operational efficiency.

AI's impact extends beyond current operations, driving innovation and the creation of new markets. Whether it is financial services, healthcare, manufacturing, or infrastructure, AI is boosting efficiency, unlocking new revenue opportunities, and thereby accelerating growth. According to the International Data Corporation (IDC), AI business spending and adoption will have a cumulative global economic impact of $19.6 trillion through 2030.

This rapid expansion of AI applications has led to an unprecedented demand for resource and infrastructure investments. Global data centre demand is expected to grow at a CAGR of 12% to 15% between now and 2030, resulting in the construction spending to exceed $303 billion during this period. Moreover, the need for AI infrastructure would also result in a power demand surge, which, according to Goldman Sachs, is expected to rise by about 200 terawatt-hours (TWh) between 2024 and 2030, potentially representing 20% of overall data center power demand by 2030. This energy demand is driven by the computational intensity of AI training and inference work.

This expected demand underscores the need for hardware and energy in supporting AI advancements. The explosive growth in compute demand can be seen in the performance of Nvidia, a leader in AI hardware and software solutions, which has seen its year over year to $26 billion, accounting for 86% of its total revenue for the quarter. The guidance for further growth clearly suggests that the surge in demand is not going to slow down anytime soon.

Despite the substantial growth and opportunities presented by AI, the current market landscape poses significant challenges:

• High Entry Barriers: Substantial capital investment and technical expertise are required to participate in the AI market, leaving smaller organisations on the sidelines.

• Concentration of Capital: With large corporations such as Nvidia attracting a major chunk of the capital, smaller players do not have the resources to take part in this technological revolution.

• Limited opportunity: Due to the nascent stage of this technology, there is a lack of adequate knowledge and information, which, in turn, has kept the wider public away from this significant growth opportunity.

These challenges can be resolved by AiFi (AI Finance), a financial framework centred around AI-focused assets and AI-driven services via:

• Tokenised AI Compute: AiFi enables asset owners to monetise their computing resources through tokenisation, creating an open market while maintaining control, thereby lowering barriers to entry and fostering inclusivity and broader participation.

• Enhanced Security and Transparency: Since the entire history is onchain, it is easy to demonstrate the chain of custody and ownership as well as ensure necessary compliance enforcements on privacy and consent regulations.

• Fair Economics and Innovative Monetisation: Tokenisation allows AI value chain asset owners to monetise future revenue streams while providing network rewards to users who participate, strengthening the network.

Bespoke Strategies

Strategies in SingularityDAO fall into two categories

Functional Strategies

Functional strategies are essentially vehicles that the vault manager can utilise to maximise the capital within a vault. These include:

• Yield Bearing Strategies: Interact with protocols such as Curve, Compound and Lido

• Derivatives Strategies: Make use of platforms like GMX and dYdX to optimise trades.

Vault Rebalancing Strategies

Vault rebalancing allows the vault manager to apply rebalancing logic based on specific events.

• Long Only Automation: Involves acquiring assets and holding them.

• Index Automation: Aim to replicate the performance of a specific market segment (DeFi, Metaverse, Meme coins, etc) represented by an index.

• Complex Quantitative Automation: These advanced algorithmic strategies rebalance capital within a DynaVault based on insights from analysing liquidity flows and market movements.

The preview for vaults in Q4 2024 will centre around the Index vaults, specifically focusing on the index of the SNET ecosystem token. A complete launch of these index vaults is scheduled for Q1 2025. Following this, yield vaults–both with and without strategies–will be introduced. This phased approach will allow for a structured rollout, ensuring that the initial index vaults are fully operational before expanding offerings to include various yield vaults.

Though data is not explicitly listed as a component in the AI economy, it plays a crucial role at almost every step. GPUs crunch terabytes of data stored in data centres, leading to the development of foundation models, which are, in turn, used by applications and services.

Over the years, we have seen the rise of data unions such as Swash and Streamr that reward users for providing data and helping create the data economy. Ocean Protocol, for example, provides a platform for such providers/unions to operate effectively. They can then sell the data on the marketplace. Ocean’s robust framework ensures that the data follows the required laws of the operating countries. The users providing the data would be rewarded via a part of the fee generated by consumers of the data.

Governance contract manages different authorization levels:

Governance: Can modify configured governance, management, and guardian roles, as well as add or remove tokens and strategies.

Management: Can manage the vault by swapping tokens and investing or liquidating strategies.

Guardian: Has the authority to place the vault into emergency shutdown mode, which sets all strategy weights to 0%, this will signal strategies to liquidate all investments back to the vault.

The Risk Engine forms the backbone of SFI Vaults’ safety architecture, actively mitigating risks associated with DeFi investments. It continuously monitors key parameters to safeguard user funds against adverse events.

Key Metrics Monitored:

• Exit Liquidity Risk: Ensures sufficient reserve assets to manage withdrawal requests without triggering liquidations.

• Smart Contract Risk: Monitors for vulnerabilities or exploits within integrated protocols.

• Depegging Risk: Tracks asset prices against their expected value to avert losses.

Protective Actions:

• Dynamic Reallocation: Rebalances assets in response to liquidity trends or market volatility.

• Emergency Liquidation: Liquidates positions in a loss-minimising manner when predefined risk thresholds are breached.

• Capital Protection: Secures principal by optimising exit routes and preserving reserves.

Integration with VMD:

The system provides vault managers with real-time risk analytics and generates automated risk reports to support informed decision-making and strategy adjustments.

• SFI Nodes serve as the foundational building blocks of the Singularity Finance Layer-2 (L2) blockchain. They play a crucial role in decentralisation, transaction validation and overall network security. By enabling the platform to maintain its integrity, SFI Nodes facilitate the scaling necessary to meet the demands of decentralised applications. The rollout of SFI Nodes will occur in phases, commencing with Verifier Nodes in Q1 2025, followed by the introduction of a fault proof mechanism.

• The phased approach to deploying the Nodes infrastructure—from Verifier Nodes to Fault Proofs—represents a meticulously planned roadmap towards achieving full decentralisation. Initially, Verifier Nodes will provide an efficient validation mechanism. As the ecosystem matures, the introduction of Fault Proofs will enable permissionless validation and dispute resolution, ensuring the system remains trustless and secure.

• Once the Fault Proof system is fully integrated, the network will be poised for further scalability by decentralising sequencers, thereby eliminating any centralised control points. This strategy effectively balances immediate scalability needs with the long-term objective of establishing a fully decentralised and trustless Layer-2 ecosystem. Detailed guidance on running the nodes will be released in Q1 2025, coinciding with updates on Optimism's feature rollout for the upcoming year.

The Singularity Finance (d)Apps are built with a keen focus on enabling the onboarding of the next wave of the AI economy, tackling the core challenges faced by existing Web3. Singularity Finance will provide key solutions to resolve challenges such as complex onboarding, fragmented liquidity, difficulty in fiat on/offramp, etc., and enable deep integration of decentralised finance (DeFi) applications with the AI ecosystem.

The platform will offer a seamless and intuitive interface to manage and trade various positions. Integrated with onchain account abstraction, the Layer-2 network will abstract away the complexity of key management. Moreover, users will be able to track and manage their positions in real-time across protocols, supported by AI-driven insights and recommendations.

Singularity Finance provides a robust suite of DeFi services, including staking and yield farming services, where users can earn rewards by staking their SFI tokens or providing liquidity to AI asset pools. Additionally, lending and borrowing product offerings will enable users to leverage their tokenised AI assets as collateral, unlocking liquidity without the need to liquidate their holdings.

Enhanced compliance and security are also ensured through onchain identity verification and rigorously audited smart contracts and platform codebases.

Interoperability with existing DeFi protocols is ensured by Singularity Finance’s solutions using EVM technology, which ensures not only enhanced liquidity and valuation of AI assets but also democratises access to the AI economy.

Singularity Finance allows its users to benefit from a secure, cost-effective, and user-friendly DeFi ecosystem built from the ground up to serve the unique needs of the incoming AI-Fi revolution.

Interoperability plays a crucial role in the blockchain ecosystem. SFI provides a resilient bridging solution that enables seamless interaction between the L2 and other blockchain networks. These bridges enable users to easily move their assets between ecosystems, allowing transfers from Ethereum to SFI L2 with lower fees and faster transactions.

SFI builds its bridges on top of Layer 0 architecture, which has long powered the SingularityDAO ecosystem. The fully non-custodial bridge prioritises security and efficiency, ensuring that assets can move without compromising safety.

Randomness plays a critical role in applications such as prediction markets and validator selection. SFI L2 incorporates Verifiable Random Functions (VRFs) to deliver provably fair and unpredictable random outputs. A VRF generates randomness that is both cryptographically secure and verifiable onchain. By integrating VRFs into its core architecture, Singularity Finance establishes a foundation for fairness and transparency in applications that require randomness.

On/Off Ramps

Singularity Finance understands that converting fiat to crypto and vice versa is one of the biggest challenges faced by interested parties when onboarding to any blockchain ecosystem. Cogito has an existing infrastructure in place for fiat on/off ramp solutions which allows acquisition and redemption of tokens in fiat and crypto. This is achieved through partnerships with licensed third parties as well as the use of the fund’s own bank account. Singularity Finance will expand the fiat on and off ramp solutions through partnerships to deliver an enhanced experience to its users

Ethereum’s programmable money framework has revolutionised the way developers envision financial systems. However, significant challenges persist, including scalability bottlenecks, high transaction costs, and fragmented interoperability, which continue to impede progress in the dynamic landscape of DeFi. Singularity Finance’s Layer-2 (L2) blockchain is an innovative solution to these issues, offering a secure, scalable, and user-centric platform for tokenising Real-World Assets (RWAs) and deploying AI-powered decentralised applications (dApps).

At its core, SFI L2 is designed to extend the capabilities of Ethereum. By leveraging Optimistic Rollups and integrating advanced technologies such as account abstraction, cross-chain bridges, and sophisticated oracles, SFI L2 fosters a frictionless ecosystem that benefits both developers and enterprises. This innovative approach not only addresses the existing limitations of Ethereum but also enhances the overall user experience.

SFI L2 is more than just an infrastructure upgrade; it represents a strategic pathway towards a decentralised future. Whether you are a developer creating decentralised finance (DeFi) tools, an enterprise focused on tokenising RWAs, or an innovator harnessing AI within the blockchain space, SFI L2 provides the scalability, interoperability, and compliance necessary to succeed in this evolving market.

SFI relays will play an essential role for developers, as they allow protocols to sponsor transactions. This means that third parties, such as decentralised application operators or developers can cover gas fees for users, thereby reducing participation barriers. For example, an AI agent protocol could utilise relays to subsidise fees for new members, resulting in a seamless onboarding process.

Relays operate through a decentralised network, ensuring high availability and resistance to censorship. By bundling transactions and prioritising them based on network conditions, relays significantly strengthen the L2 ecosystem.

Each strategy will feature configurable fee parameters, allowing some to be set to zero while others maintain a minimum. The primary revenue sources include two types of fees:

Performance Fees are derived from the alpha generated by each DynaVault, incentivising effective strategies.

Management Fees are calculated as a percentage of the assets under management and are independent of the Vaults' profitability. These fees typically range from 1% to 2% annualised.

Prediction Markets

Another important application of SFI is the prediction market, which harnesses collective intelligence to provide valuable insights into AI trends and project outcomes. Singularity Finance will collaborate with Ocean Protocol and the Artificial Superintelligence Alliance (ASI) ecosystem to develop a compliant prediction market based on advanced predictor engines. This integration will enable users to make informed forecasts on future AI developments, enhancing decision-making capabilities for users and developers within the SFI ecosystem.

SFI L2 addresses the diverse needs of developers, institutions and users. The platform establishes a foundation for creating seamless, efficient, and intelligent decentralised applications (dApps).

Keepers automate routine vault operations, such as reinvestment and rebalancing, ensuring operational efficiency.

AI-Driven Market Making and Liquidity Provisioning

As DeFi applications are integral use cases on Singularity Finance, we are facing the challenges inherent to the DeFi space. One of the key issues for emerging protocols is the limited or fragmented liquidity pools, which lead to various price inefficiencies. Singularity Finance addresses this challenge with its innovative AI-driven market-making solution.

Our AI-powered market-making algorithms continuously monitor and automatically adjust liquidity pools to balance supply and demand, ensuring deep and consistent liquidity across all traded AI assets. This non-custodial system provides tighter spreads and creates a level playing field for all market participants. It's particularly beneficial for newer, small-cap AI tokens, offering them an efficient price discovery mechanism. With its customisable parameters, the system can adapt to various market conditions and regulatory requirements, making it a robust and future-proof solution for the AI-focused DeFi ecosystem on Singularity Finance.

Querying data directly on a blockchain can be resource-intensive and slow, posing challenges for decentralised applications (dApps) that rely on real-time data. SFI L2 addresses this issue by implementing an indexing layer designed for speed and scalability.

Indexers collect and structure blockchain data, converting raw transaction records into accessible formats. This allows developers to retrieve specific information, such as token balances, transaction histories, or application analytics, without overloading the network. Moreover, by reducing repetitive tasks, indexers improve the efficiency and responsiveness of dApps.

On SFI L2, an RWA platform can utilise indexers to display real-time asset performance metrics to investors, while DeFi applications can access up-to-date liquidity and price data through indexers to provide users with timely market insights.

Singularity Finance integrates reliable automation capabilities and offchain data feeds, transforming static contracts into dynamic systems that adapt in real-time. Automation occurs through event-driven workflows, where specific conditions—such as a price threshold or time interval—trigger predefined actions on the blockchain. For instance, a decentralised trading platform could execute trades automatically when AI-powered algorithms detect market trends. Such workflows eliminate the need for constant user intervention, enhancing efficiency and intelligence in decentralised systems.

Together, automation and offchain data and oracle integration create an environment where dApps become not only smarter but also more connected to the real world, driving meaningful adoption.

SFI Vaults are a cornerstone of the SFI Layer-2 ecosystem, offering users a comprehensive asset management solution that incorporates multi-asset and multi-strategy capabilities. These vaults utilise advanced asset management techniques, integrating AI and machine learning to provide flexibility and diversity in managing assets. Users benefit from a fully non-custodial experience, supported by a state-of-the-art Risk Engine and Execution Engine that ensure security. Additionally, the vaults are equipped with a comprehensive Backoffice solution, the Vault Management Dashboard, which has been designed with vault managers and strategists in mind.

Overview

SFI Vaults combine flexibility and sophistication to manage assets within the volatile DeFi landscape. These multi-asset, multi-strategy vaults, powered by advanced AI-driven risk management and automated execution engines, represent a significant evolution in the management of tokenised real-world assets.

SFI vaults allow users to deposit various assets that convert into a base token for unified management. The strategies deployed within the vaults optimise yields while safeguarding user funds through robust governance and risk frameworks.

The VMD empowers fund and asset managers to devise, set up, manage, and monitor their onchain positions effectively. This innovative system simplifies the DeFi investment process by eliminating the complexities associated with managing multiple positions across various protocols and platforms. Furthermore, the VMD accommodates both strategist and manager roles, enhancing operational flexibility and efficiency.

The VMD's reporting system is a cornerstone feature designed to offer comprehensive reporting capabilities that cater to the needs of vault managers, strategists, and stakeholders.

The initial minting of SFI tokens (241 million) will be allocated and distributed according to the current circulation and committed distribution schedules of CGV and SDAO. Based on the circulating supply and emission schedule, the current token numbers across the two merging entities are as follows:

After adding the newly minted SFI to the circulating tokens, here is the final version of the SFI token distribution:

Vesting Schedule

Key Benefits

• Composability and Integration (B2B): The DynaVaults framework implements the ERC4626 vault standard, first introduced by Yearn Finance to enable smooth integration across DeFi protocols. This standard creates flexible, interconnected "money legos" for yield-bearing vaults. Users who deposit assets receive vault shares, which they can later redeem for their underlying assets. The share amount depends on two factors: the user's deposit size and the vault's current exchange rate, which is determined by total vault liquidity.

• Value Extraction Protection:

The Router is a generic router that can register multiple routes, which can be registered The Router serves as a versatile tool that registers multiple routes for both onchain contracts and offchain swap execution engines. Users can enable or disable router registrations as needed. The Router's primary responsibility involves abstracting the preview of swapping underlying assets and executing swaps onchain based on offchain collected data. This functionality allows for more informed decision-making regarding swaps. Additionally, the Router can revert swap executions if the output amount deviates from the previewed amount by a configurable threshold, expressed in reference asset value.

• Unified API for Decentralised Applications, Smart Contracts and AI Agents: Singularity Finance has developed a single, standardised interface known as the “DynaRouterAPI” for interacting with various routers (decentralised exchanges) and zappers (tools for bundling complex token interactions).

• Secure Decentralised Router Comparison: This API standardises expected output amounts and slippage across multiple routers and zappers. It enables decentralised applications to perform multiple offchain queries to select the optimal router or zapper, ensuring slippage protection during onchain executions when entering or exiting tokenised positions.

Singularity Finance is extending SingularityDAO’s reputation‑points framework to reward long‑term SFI stakers. By staking SFI, participants accumulate SFIREP—a non‑transferable score that unlocks tiered benefits and larger yields. Reputation and tier level will shape every major reward mechanism across the SFI ecosystem.

Premium tiers are the gateway to early access features, starting with the SFI AI Agent for portfolio management and analytics.

First associated utility – upcoming SFI AI Agent.

SFI AI Agent v1

Q4 2024:

• Completion of the merger between SingularityDAO and Cogito Finance.

• SFI Token Launch.

• SFI Migration portal launch.

Valuation

• Asset Assessment: Singularity Finance’s tokenisation framework takes into account the hardware specifications, energy efficiency, operational capacity and existing contract of the data centre to complete the necessary due diligence.

Mainnet

Singularity Finance L2’s mainnet will mark the culmination of extensive development, testing and community engagement. Scheduled for Q1 2025, mainnet will transition from the testnet phase to a fully operational, decentralised platform ready to support real-world applications in tokenised assets.

Key Milestones

The sequencer serves as a critical component of the rollup architecture, batching and ordering transactions before submitting them to the Ethereum mainnet. Singularity Finance’s sequencer design prioritises fairness, decentralisation and performance.

Key Features:

1. Transaction Ordering: Prevents front-running and MEV (Miner Extractable Value) by implementing fair ordering algorithms.

SingularityDAO

Website:

Docs:

Github:

Cogito

Website:

Github:

An oracle is a service that provides trusted price quotes based on price observations. Our Reference Asset Oracle framework registers a preferred oracle alongside several fallback oracles to ensure continuous and secure pricing in reference asset denominations.

• Asynchronously Updated Decentralised Oracle Networks: Singularity Finance typically employs asynchronously updated decentralised oracle networks as our preferred oracle. Networks like Chainlink aggregate data from multiple sources, reducing reliance on any single data provider. Asynchronous updates complicate price manipulation for attackers within short time windows.
• Manipulation Resistance: Our fallback oracles calculate the geometric mean of prices across multiple observation points in decentralised exchanges (AMMs) to avoid economic exploits using flash loan attacks. The geometric mean smooths out extreme values and minimises the impact of outliers, making it more resistant to manipulation.

SFI Vaults offer a variety of use cases that extend beyond individual DeFi users. These vaults can also effectively be utilised by asset managers, high-net-worth individuals (HNIs) and DAO treasuries, enabling them to earn yield while also hedging their portfolios. The platform's comprehensive features, including robust risk modules and an automated execution engine, also significantly enhance their user experience.

Key advantages of the SFI Vaults include:

• Unified Management: Users can create strategies, execute trades, manage risks and track performance all from a single platform.

• Advanced Reporting: The vaults provide state-of-the-art reporting functionalities while offering detailed insights into the assets being managed.

Data availability plays a critical role in validating offchain transactions and resolving disputes. Singularity Finance employs a hybrid model that blends onchain and offchain strategies to optimise both scalability and security.

Efficiency: Reduces storage costs on Ethereum.

Integrity: Ensures disputes can still be resolved trustlessly.

Scalability: Supports high-throughput applications without sacrificing decentralisation.

Without strong data availability, L2 could face compromises, making it vulnerable to attacks and manipulations. For SFI, the team evaluated all available infrastructure providers, such as Ethereum, Celestia, and Eigen.

User-centric design lies at the heart of SFI L2, with account abstraction (AA) serving as a key feature to achieve this goal. Traditional blockchain accounts—Externally Owned Accounts (EOAs)—force users to manage private keys and tokens for transaction fees, creating a steep learning curve for newcomers. SFI L2 addresses this challenge through AA by decoupling these systems and replacing them with programmable smart accounts.

Account abstraction offers users features like gasless transactions, allowing dApp operators to subsidise fees or enabling users to pay in their preferred tokens. This flexibility proves invaluable in scenarios where onboarding non-crypto-native users is critical. Furthermore, programmable smart accounts allow for the integration of custom logic directly into wallets, facilitating automated approvals, role-based access, and security enhancements such as multifactor authentication.

By abstracting complex blockchain interactions, account abstraction not only lowers barriers to entry but also opens doors to innovative use cases, ranging from automated payments to AI-driven portfolio management.

Unlocking the full potential of a tokenised AI economy faces significant challenges that need to be addressed:

1. Liquidity Constraints: Infrastructure assets such as data centres and hardware, are inherently illiquid, making it difficult to manage effectively.

2. Complex Valuation: Lack of peer comparison data and the need for specialised knowledge makes it difficult to value these assets correctly.

3. Limited Accessibility: High entry costs and regulatory barriers limit the opportunities to a few players.

4. Onboarding Traditional Companies: Web2 AI companies, unfamiliar with blockchain technology, are hesitant to adopt it due to perceived risks and regulatory uncertainties.

Singularity Finance’s Layer-2 (L2) addresses these challenges by building features and products specially tailored for the AI economy. Some of the advantages of Layer-2 include:

1. Enhanced Scalability and Efficiency

• High Throughput: The Layer-2 network provides significant advantages over the Ethereum mainnet. Able to handle a substantially higher transaction volume, the L2 provides a much-needed scalability solution.

• Low Transaction Costs: By processing transactions on the L2 and batching them onto the mainnet, the Layer-2 solution reduces gas fees, making small and microtransactions economically viable.

2. Improved Liquidity Through Composability

• DeFi Integration: Ethereum Virtual Machine (EVM) compatibility of the Singularity Finance L2 allows for integration with existing decentralised finance (DeFi) protocols. This opens avenues to building a much wider array of sophisticated financial services.

Examples include:

• Collateralisation: Enhances the utility of these assets, promotes liquidity and enables the creation of complex financial products.

• Restaking: Can be employed in yield farming or liquidity provisioning, generating multiple income streams out of the same initial investment.

• AI Infrastructure Futures & Options: Contracts allowing operators to hedge and/or lock in the future prices of AI computing power.

• AI Asset Index Funds: Creation of a diversified portfolio tracking the performance of various AI tech-stack tokens.

3. Fair and Transparent Valuation Mechanisms

• Market Discovery: As more protocols and products launch onchain, the active trading and enhanced liquidity will allow effective determination of asset prices. This will provide a better benchmarking scale for such assets, something currently missing in the AI economy leading to inefficient pricing.

4. Increased Accessibility for Users and Companies

• Regulatory Compliance Frameworks: Singularity Finance L2 will include integrated compliance features, including onchain identity verification and AML checks. This would not only fulfil necessary regulatory requirements but also instil confidence in traditional Web2 companies considering blockchain adoption.

• Educational Resources and Support: Singularity Finance framework will provide the necessary guidance and support to help traditional AI companies navigate through the complexities of tokenisation.

5. Collaborative Ecosystem Development

• Attracting Developers and Innovators: Singularity Finance L2 will serve as the base for developers and innovators to build and deploy AI-focused applications and services.

• Ecosystem Synergy: By focusing on various components of the AI value chain, Singularity Finance will be able to utilise the network effect, enhancing the value and utility for all participants.

6. Strategic Alignment with SingularityNET and the Artificial Superintelligence Alliance (ASI)

By leveraging the network of SingularityNET, a leader in artificial intelligence, Singularity Finance can integrate and work with some of the most innovative institutions in the world. A few of the benefits of being a member of the ecosystem include:

• Comprehensive Coverage of the AI Value Chain: With an exhaustive list of partners in the wider ecosystem, Singularity Finance can tokenise both tangible assets (like data centres and hardware) and intangible assets (such as data, applications and services), addressing every stage of the AI economy.

• Acceleration of Market Growth: By working with the leading player in the Decentralised AI ecosystem, Singularity Finance is poised for significant growth and can establish itself as the centre of excellence for tokenisation of the AI economy.

Strategically Deployed Technology: The SFI Layer-2 Network

The dedicated Layer-2 network of Singularity Finance is a technical and strategic solution tailored to overcome the specific challenges of tokenising the AI economy. This specialised network facilitates the creation of new financial products, ensures fair asset valuations through transparent market mechanisms and broadens accessibility by integrating with the broader AI and blockchain ecosystems.

Optimistic Rollups are the core of SFI’s L2 architecture. Based on the Optimism Superchain, this architecture enables scalable transaction processing by offloading computation and state storage offchain while retaining Ethereum as the settlement layer.

Key Components of Optimistic Rollups in Singularity Finance:

• Transaction Batching: Multiple transactions are grouped and processed offchain, reducing gas costs and increasing throughput.

• Fraud Proofs: In case of disputes, a fraud-proof mechanism ensures that the Ethereum mainnet can verify and correct malicious behaviour. This process leverages game-theory principles, wherein validators can challenge incorrect transactions within a specific window.

• Rollup Contracts: Smart contracts deployed on Ethereum serve as the bridge between offchain operations and onchain commitments.

Enhancements:

• Scalability: By processing transactions offchain, the system achieves significantly higher throughput than Ethereum’s base layer.

• Cost Efficiency: Gas fees are significantly lowered as only essential proofs and minimal data are submitted to Ethereum.

• Security: SFI L2 preserves the strong security framework of Ethereum while ensuring trustless execution.

SFI L2 is built on top of the Optimism chain. This decision was taken after carefully examining the competing technologies and their market adoption. The launch of Coinbase’s L2 Base via OP and the upcoming launch of Kraken’s Chain further strengthened the case for Optimism.

Singularity Finance’s platform combines the power of AI, real-world asset tokenisation and Layer-2 scalability. By providing a compliant, scalable and efficient platform, Singularity Finance opens new opportunities for retails, businesses, and institutions to engage with AiFi in a decentralised and transparent environment, tailored to the unique needs of artificial intelligence applications when met with tokenisation.

The platform’s AI-powered tools and automated KYC/AML processes ensure that it can scale to meet the needs of a rapidly growing AI economy. As tokenisation continues to reshape traditional finance, Singularity Finance is uniquely positioned to unlock trillions of dollars in tokenised assets across the AI economy, and thereby leading the transformation of global financial systems.

Oracles act as trusted intermediaries between the blockchain and the real world. They enable smart contracts to fetch real-time data, such as asset prices, weather conditions, or API feeds. In SFI, oracles aggregate data from multiple sources to ensure accuracy and minimise manipulation risks. For instance, a DeFi vault might need real-time financial data from a data centre to update its performance metrics.

To maintain trustlessness, oracles cryptographically verify the data they fetch before relaying it to the blockchain. This guarantees that the information driving smart contract execution is both accurate and tamper-proof, making oracles indispensable in applications like DeFi and RWA tokenisation.

The Execution Engine acts as the operational backbone of SFI Vaults, facilitating the seamless execution of asset management strategies. It connects offchain logic with onchain execution, ensuring precision and reliability in trade execution. Trades are initiated offchain by either a human digital asset manager (DAM) or trading algorithm signals, which are activated by events and conditions derived from technical analysis tools or machine learning signals.

All current Vaults trades are handled by the execution server. Both DAM and trading algorithms can create custom trade orders, such as 'Spot' or 'Market If Touch' (MIT) orders, which the execution server validates and executes onchain. The execution server utilises onchain oracles to ensure accurate token pricing and verifies order matches with each new block.

Trading on Vaults occurs exclusively through the execution server.

The read-only endpoints of the execution server incorporate authentication layers using traditional methods. To modify any state on the server, such as creating or cancelling orders, an additional layer of authentication is required, utilising web3 signature authentication with only select authorised wallets.

Proportional Unlocking: Singularity Finance does not lock the underlying vault assets, allowing vault managers to maximise profit generation using the full Total Value Locked (TVL). Instead, Singularity Finance locks only a percentage of the shares representing the profits made. The blue line on our charts represents the total value in the vault, rising when profits are generated and remaining flat during market corrections when profits are negligible. The red line indicates the liquid portion of the vault. Singularity Finance only locks a percentage of the shares representing profit made.

• The blue line represents the total value in the vault. The blue line goes up when profit is being made. The blue line is flat when profit is negligible during market corrections.

• The red line is the liquid part of the vault.

Deferred Proportional Profit Realisation: Our profit framework accelerates the unlocking of profits as TVL grows. When TVL growth slows or stagnates, the system continues to release previously locked profits, ensuring consistent growth in share value.

Sustainable, stable profit emission: This dynamic structure ensures that the system remains sustainable across varying market conditions, encouraging long-term participation while mitigating the risks of stagnation or volatility. Harvest “Sandwich Attack” Protection: A sandwich attack occurs when an attacker front-runs and back-runs a transaction. In vaults, this typically involves depositing just before a harvest transaction to increase the percentage of profit allocated to them, followed by an immediate withdrawal after the harvest. Since 100% of the profit is locked by profit harvest transactions, no value can be extracted by sandwich attacks in the same block.

Incentivises Long-term participants, deters Mercenary Behavior: Mercenary farming refers to users who deposit funds to maximise short-term yields, quickly withdrawing their funds after collecting rewards and moving to the next high-yield opportunity. These mercenary farmers forfeit a portion of their rewards, which are then redistributed proportionally to the remaining participants.

Per-asset configurable watermark: A watermark serves as a benchmark level that must be surpassed before performance fees are charged. This feature ensures that fees apply only when real profits are achieved, preventing users from paying fees on recoveries after losses during volatile market conditions. The watermark feature is configurable per asset, allowing for more frequent updates for highly volatile assets. It guarantees that fees are charged only when the asset exceeds its previous watermark value.

Connecting to the Testnet via MetaMask:

MetaMask, a widely-used Ethereum wallet, serves as the gateway for interacting with Singularity Finance’s Layer-2. Configuring MetaMask for Singularity Finance allows developers to connect directly to the L2 network, test smart contract interactions, and participate in the testnet campaign.

Steps to Configure MetaMask:

• Install MetaMask: Download and install the MetaMask extension or mobile app.

• Add Singularity Finance L2 to MetaMask:

  • Open MetaMask and navigate to "Settings" > "Networks."

  • Click "Add Network" and input the following details:

    • Network Name: Singularity Finance Testnet

    • New RPC URL:

    • Chain ID: 751

Save the Configuration: Once the network details are saved, you can switch to the Singularity Finance Testnet and begin interacting with the blockchain.

MetaMask enables developers to test transactions, sign messages, and manage SFI tokens in an intuitive and secure manner.

Ensure the correct chain ID and network parameters are entered.

Requesting Test SFI Tokens:

• Use the faucet available at to request test tokens.

• Tokens are distributed in limited amounts to ensure fairness and prevent abuse.

• If needed more reach out to the team

Development Environment

• Utilise tools like Hardhat or Truffle to deploy and interact with smart contracts.

• Use the testnet block explorer ( ) to monitor transactions and contracts.

Verifier Nodes

• Singularity Finance L2’s verifier nodes enable community members to actively participate in securing the network by validating transaction batches. The initial design will focus on minimising software and hardware requirements, thereby enhancing community participation.

• Setting up a Verifier Node involves a streamlined process that allows users to configure a lightweight node client connecting to the Singularity Finance network. This approach ensures that even non-technical community members can operate nodes effectively. Node operators will receive rewards based on their contributions to the network, measured by uptime and validation accuracy. These rewards will be distributed automatically via smart contracts, ensuring transparency and fairness.

Fraud Proofs

• In late 2025, the SFI L2 will upgrade its nodes to incorporate Fraud Proofs, significantly enhancing network security. Fraud Proofs are a vital component of the Optimistic Rollup architecture, designed to ensure the validity of state transitions through permissionless validation and dispute resolution.

• The Fraud Proof mechanism allows users to submit state proposals, which represent claims about the network's state, such as the inclusion of a transaction batch or a withdrawal request. These proposals will undergo a challenge period during which other participants can dispute them if they believe the proposals are invalid. Disputes will be resolved through a “dispute game,” an iterative process where both parties present evidence to support their claims.

• Proposers will earn rewards for submitting valid state transitions, while challengers will receive compensation for successfully identifying and disputing invalid proposals. This model fosters vigilance and active participation, thereby securing the network and maintaining its integrity.

Benefits of running a node:

• Staking Rewards: Node operators will earn rewards by staking SFI tokens and running the nodes. These rewards will be distributed based on their contribution to the network, such as uptime, number of transactions processed or the number of tokens staked.

• Share of Transaction Fee: As the network matures, the network will see a growth on the number of transactions occurring on the chain. Node operators will also earn part of the transaction fee generated by the network.

• Delegated Staking: Users who cannot run their own nodes will be able to delegate to the available node operators. This allows pooling of resources leading to increase in staking power and greater rewards. A portion of the rewards would be distributed back to the delegators

Vesting and Unlock

To discourage short-term speculation and ensure overall network stability, early redemption of staked tokens may incur a penalty on the staked amount. Tokens become fully accessible after the completion of the vesting period, allowing operators to realise the full benefits of their participation.

Unified Modeling of Zap Actions as Swaps: The zapper framework integrates seamlessly with the DynaRouterAPI, simplifying and optimising interactions with DeFi vaults and liquidity pools. It models deposits into vaults as a swap from contribution tokens to vault shares. The underlying vault zapper contracts facilitate the transparent exchange of contribution tokens into deposit tokens of the vault. Similarly, liquidity zapper contracts manage the addition or removal of liquidity using a single underlying AMM weighted pool token.

Predictable Cross-Protocol Optimal Routes:

By modelling all zap actions as swap actions, the router framework can select the optimal output amount by previewing vault share redemption against the preview of a swap of vault shares in a decentralised exchange. Fine Grained Access Control: For regulated tokens or closed beta launches, Singularity Finance has developed a TokenWhitelistRegistry that manages access to different token routers and zappers.

3. Starting with the TestnetFollow these steps to start your journey on the SFI Testnet:Step 1: Log In with Your WalletConnect your wallet to the SFI Testnet. You’ll need this to interact with the network.Step 2: Get SFI TokensHead to the Faucet section.Request SFI tokens. You can claim tokens once per day.Note: SFI is the native token of our Layer-2 blockchain. It’s used for gas fees, similar to how ETH is used on Ethereum. Ensure you always have enough SFI. If you need more, ask our community for assistance.

Step 3: Perform Transactions

• Use your SFI tokens to send funds to others on the network.

Step 4: Stake Your SFI

1. First, convert SFI to wSFI (wrapped SFI):

   1. Visit the Swap page: .

   2. Exchange your SFI for wSFI.

2. Once you have wSFI, head to the Staking section:

   1. Choose the amount and duration of your stake.

   2. View details such as APR, staked tokens, and claimable rewards.

3. Manage your staking actions:

   1. Stake, unstake, or claim rewards at any time.

4. Earning Points

On-Chain Actions

Earn points for completing actions on the testnet, such as:

• Staking, claiming and unstaking SFI

• Bridging SFI

• Using Swap

Social Actions

Earn additional points by completing social tasks. Check your Dashboard for details and progress tracking.

5. Stay Updated

We’re constantly adding new activities and projects to the testnet. Keep an eye on announcements for the latest updates.

• Duration: The testnet will run for 3 months.

• Upcoming Projects: More features and projects will go live during this period.

6. Support and Community

If you encounter any issues or have questions, reach out to our community for help. Our team and community members are always here to assist you.

Happy Testing! We’re excited to have you onboard the journey of Singularity Finance’s Layer-2 blockchain.

SFI Vaults are designed to optimise yield generation and manage liquidity while maintaining a high degree of user trust.

Overview

Instantiating a new vault

• Deposit Token: This cannot be changed after initial setup.

• Reference Token: : This token also remains fixed post-initialisation.

Singularity Finance (SFI) aims to establish a robust foundational identity solution that empowers individuals to maintain their identities onchain. This innovative approach enables both permissioned and non-permissioned products to coexist on the same Layer-2 (L2) blockchain, facilitating compliance with Anti-Money Laundering (AML) regulations for permissioned products.

Identity Components

The identity solution incorporates several key due diligence checks, which can be updated periodically:

• KYC (Know Your Customer): This process is essential for onboarding individuals and requires personal information such as name, date of birth, passport details, and potentially a selfie or liveness check.

FAQs for SFI Testnet Launch

1. What is the purpose of the SFI Testnet?

The SFI Testnet allows users and developers to explore the functionalities of the Singularity Finance ecosystem, provide feedback, and participate in gamified challenges. It’s a vital step in preparing for the mainnet launch, ensuring the platform is robust, secure, and user-friendly.

2. Who can participate in the testnet?

The testnet is open to everyone, including developers, crypto enthusiasts, and users interested in testing decentralized financial solutions.

3. Do I need real funds to participate in the testnet?

No, the testnet uses test tokens that have no real monetary value. These tokens can be acquired through our faucet

The SFI token is the native utility token of the Singularity Finance Layer-2 blockchain network, designed to ensure a secure, efficient, and decentralized digital ecosystem. It is the cornerstone of the network’s functionality, integrating economic, operational, and governance roles to foster a sustainable and community-driven platform.

Key Features and Ecosystem Role of the SFI Token:

Powering Network Operations

The SFI token is instrumental in accessing and using the network features and serves as a unit of account to cover the network’s costs.

● Transactions and Smart Contracts: The SFI token is used to pay for all Network Fees, which include costs associated with transactions and smart contract execution within the Layer-2 ecosystem.

● Asset Tokenization: Users who tokenize assets within the ecosystem pay a launch fee in SFI tokens.

● dApp and Protocol Operations: Developers and operators of decentralised applications (dApps) and third-party protocols pay Network Fees in SFI tokens to run their services on the Layer-2 infrastructure.

Network Security and Integrity: Staking and Node Operations

Founders

Cloris Chen - CEO, Co-Founder

Cloris Chen is the CEO of Cogito Finance, a DeFi platform offering institutional-grade investment products by tokenising fixed-income assets and equities. Cloris combines a banking background with hands-on DeFi experience. She spent 6 years at HSBC and served as treasury director for a unicorn startup. This diverse experience of the CEO helps Cogito to address challenges in DeFi, such as unsustainable yield farming, credit risk, and regulatory uncertainty through tokenisation. As a SingularityNET partner, Cogito harnesses Ben Goertzel's AI expertise for the company’s processes, including portfolio management.

Mario Casiraghi - Co-Founder

Mario is an Executive of the Artificial Superintelligence Alliance (ASI), CFO at SingularityNET, CFO and Co-Founder of SingularityDAO. Mario spearheaded growth of the SingularityNET ecosystem since 2020 by leading the efforts across spin offs as well as at a SingularityNET level, more recently by leading Artificial Superintelligence Alliance (ASI) merger related activities. Mario also led the SingularityDAO product and quants strategy since the inception in 2021. He helped raise $100M+ for blockchain based companies. Formerly covered positions at Bank of America Merrill Lynch and RBS. He also completed 50+ Debt Capital Markets transactions for c. $80bn in total financing.

Ben Goertzel - Co-Founder, Chief AI Advisor

Dr. Ben Goertzel is the founder and CEO of SingularityNET, a decentralised artificial intelligence marketplace that allows for the creation, distribution and monetisation of AI services. He has written numerous scholarly papers and books on artificial intelligence, cognitive science, and philosophy. He has been involved in the platform’s development since its beginning, and he was instrumental in the design and execution of its AI algorithms. Dr. Goertzel is also the co-founder and Chief Scientist Officer of Cogito. His knowledge of artificial intelligence and blockchain technology has been instrumental in the creation of Cogito, and he remains actively involved in the company’s ongoing research and development efforts.

Leadership Team

Raam Baranidharan - CTO

Raam is a technology executive with over 20 years of global experience. He has held leadership posts in several startups and has been part of the SingularityNet ecosystem as well, leading the development of the marketplace. He is a firm believer in continuous learning, recognising its paramount importance in the era of AI. As a passion project he has authored a book series that simplifies technology for children, published by HarperCollins.

Shailendra Sason - CPO

Shailendra has over 15 years of experience in startups and the fintech sector, including extensive work in regulated markets within fintech and banking. He previously served as the Crypto Lead at Revolut before co-founding Solvo, a crypto startup. An MBA graduate from the University of Oxford and recognised as an Exceptional Talent in the UK, he holds a patent and co-authored the World Economic Forum's "Future of FinTech" report.

Advisors

Janet Adams - SingularityNET COO

Her leadership role at SingularityNET encompasses a broad range of responsibilities, including technology, operations, marketing, investment, accounting, payments, strategic partnerships, business development, and decentralisation.She is a passionate advocate for AI and blockchain initiatives with vast experience in multiple vertical markets, including robotics, biotech, gaming and metaverse, media, DeFi, music, and arts.Janet is also a co-founder of Cogito Protocol. With her expertise extending beyond the finance industry, Janet excels at strategy and planning, bringing interdisciplinary expertise in AI to the table. Her unique set of skills and experience allow Cogito to tap into entirely new dimensions of problem-solving and planning.

Jon Grove - Artificial Superintelligence Alliance (ASI) Head of Communication

Jon Grove has a diverse background, blending his passion for science and technology. He spent a decade in China, earning a Bachelor's in Chinese Language from Zhejiang Gongshang University and teaching there for ten years. His career began in electrical engineering, specializing in bespoke security hardware. Since 2021, Jon has been instrumental in building communications for the Artificial Intelligence Alliance (Artificial Superintelligence Alliance (ASI)) and managing communications for SingularityNet, Sophiaverse, and SingularityDAO, helping to grow their brands in the DeFi and AI sectors.

Amaury Dalleur - SingularityDAO Head of Incubation

Leads Funding Rounds and Manages KOLs & Partnerships. Co-created and developed the largest French speaking web3 community in 2021 (bought by Binance). University blockchain teacher & advisor to 1B$+ valuation company.

As part of the merger, the three existing tokens SDAO, CGV, and Key would be converted into SFI tokens, thereby creating a single decentralised governance token used across the platform. The token merge will bring the utility of the two protocols within a single token.

In the initial phase the SFI token would be available on Ethereum and BNB Chain.

The token conversion rates for the migration to SFI are as follows:

• SDAO will convert to SFI at a ratio of 1:1 (1 SDAO = 1 SFI)

• CGV will convert to SFI at a ratio of 1:0.14122 (1 CGV = 0.14122 SFI)

• KEY will convert to SFI at a ratio of 800:1 (800 KEY = 1 SFI)

This process will result in an initial supply of 241,215,846 SFI tokens.

Specifically for Key Token Conversion Window: For KEY token, the conversion will remain open for 90 days starting from the official SFI Token Launch date. Access Point: Conversions can only be processed on Ethereum blockchain via our secure portal: . This allocation will be sourced entirely from the SFI treasury, ensuring there are no changes to tokenomics or dilution of SDAO or CGV token holders.

This integration represents a synergistic opportunity, combining robust technologies and vibrant communities to advance innovative DeFi solutions. SelfKey’s identity management technology aligns seamlessly with the SFI ecosystem, introducing the potential for enhanced security features and new use cases.

Conversion Methodology

In the interest of transparency, the process leading to the determination of the above-mentioned conversion ratios is outlined below:

• The 200 DMA (daily moving average) of token prices was used to define the conversion ratios. This was done in order to remove any short term price volatility impacting the final ratios of conversion.

• The max supply of each token was used to set the final weights of each token in the merger.

• The ratios and the final set prices are disclosed with the merger announcement in order to avoid market manipulation.

Note: This merger is still pending the vote of approval of SingularityDAO community. A blog post in relation to that with further details around the proposal and voting dates would be announced with release of the merger announcement or soon thereafter. Cogito does not require a community vote for the proposed merger. On successful passing of the vote, the merger portal for migrating SDAO and CGV would be open to the community. Details related to the aforementioned process will be provided in due course.

Additional Token Mint

In order to fund further development and provide incentives to early developers and users there will be an additional token supply of 258,784,154 minted. These tokens would be minted as per the vesting schedule defined later in the paper. A few of the areas where the newly minted tokens would be used for incentivisation are:

Ecosystem development pool would be used for various activities such as grants for projects to build on the SFI L2 and R&D as well as maintenance of the network infrastructure etc.

Ecosystem incentives will be used to support the growth of the network and facilitate collaboration between various network participants.

a. Community Incentives

A part of the incentives would be used to support developers, who build dApps, contracts, AI services/agents on the Layer2. Some of the initiatives would be to organise bounty programs, gas sponsorship/refund for dApps etc. to attract users and drive adoption. Furthermore, community outreach initiatives such as referral programs, ambassador programs would be set up to create a loyal and active base of community members.

b. Network Incentives

Token holders who participate in securing the network either via running Singularity Finance nodes or delegating to other node runners would be rewarded with SFI tokens. These incentives will allow the stakers to keep their tokens staked, enhancing the network security.

c. Liquidity incentives

SFI tokens will also be used as incentives to attract liquidity to Layer-2. A part of the additional token supply would be used to jumpstart the DeFi activity on the chain. For example: SFI tokens would be rewarded as incentives to users who supply assets to the liquidity pools. This enhanced liquidity would lead to better pricing as well as attract better market participants, supporting the network growth. This will result in a total SFI supply of 500,000,000 tokens after additional mint.

The launch of SFI L2’s testnet is set for the end of Q4 2024. This three-month incentivised testnet will allow the team to assess the system's robustness while providing the community with an opportunity to preview the mainnet features and earn rewards during the testing phase.

Target Audience

• Blockchain Enthusiasts: Individuals eager to explore and engage with the latest onchain technology launches. They actively evaluate emerging technologies and may seek opportunities to convert earned points into valuable airdrops.

• Developers: Those looking to build onchain solutions. Developers will benefit from technical documents and tutorials to further understand the innovative solutions offered by SFI L2. Developers may also become advocates for the platform, especially with the possibility of receiving grants to support ecosystem development.

• Protocols: New or existing protocols on other chains that can facilitate adoption. The testnet serves as a platform to attract and educate these protocols about the benefits of SFI L2.

Objectives of the Testnet Campaign

The testnet campaign aims to achieve several key objectives:

• Stress Testing the Network:

  • Evaluate the scalability, reliability, and security of the L2 infrastructure by simulating high transaction volumes.

  • Identify edge cases and potential bottlenecks.

• Feature Validation:

Incentivisation Structure

The incentivised testnet rewards participants for completing specific activities, promoting active engagement across various roles. Rewards are allocated in points and fall into the following categories:

• User Rewards:

  • Completing transactions on dApps running on the testnet.

  • Testing wallet features, such as bridging assets and interacting with faucets or swapping tokens on the testnet.

  • Exploring features of participating protocols.

Leaderboard System

Participants will be ranked on a leaderboard based on their accumulated points. This gamified approach adds a competitive edge and encourages consistent participation while maintaining transparency.

Feedback and Reporting

Participants play a vital role in refining the testnet through their feedback and bug reports. A dedicated feedback portal will allow users to:

• Submit bug reports and enhancement suggestions.

• Share logs, screenshots or transaction details to support debugging.

• Earn additional rewards for critical or high-impact contributions.

Singularity Finance has devised a robust tokenisation framework that allows seamless conversion of real-world assets and services into tokenised assets via a tokenised funds structure. It not only allows a platform to securely tokenise and trade these assets, fulfilling all the compliance requirements, but also provides full transparency and verifiability on usage of the underlying. The non-custodial blockchain system ensures that users are always in full control of their assets. Singularity Finance’s tokenisation framework supports a wide range of asset classes:

Singularity Finance understands the concerns of organisations interested in the tokenisation space and therefore offers a comprehensive suite of services to accommodate the tokenisation process. This includes providing the technical infrastructure required to create and manage tokenised assets, assuring compatibility with the Layer-2 while offering legal support to navigate the regulatory landscape.

It also ensures that all tokenised assets comply with KYC/AML regulations and meet the standards of both local and global regulatory frameworks. Singularity Finance understands that some sectors are extra sensitive owing to various data protection and legal compliance regulations and therefore offers access to legal experts who specialise in blockchain regulations, ensuring that tokenised assets are legally compliant from the outset.

• EMA_14: The 14-period Exponential Moving Average, a moving average that gives greater weight to recent prices to make it more responsive to current market conditions.

• EMA_14_15M: The 14-period Exponential Moving Average calculated on the 15-minute chart, emphasizing recent price action on that interval.

• EMA_14_15M_PREVIOUS: The 14-period Exponential Moving Average value from the previous 15-minute candle, reflecting the prior session’s weighted trend.

• EMA_14_1D: The 14-period Exponential Moving Average calculated on the daily chart, providing a smoothed view of short-term trends on a daily scale.

• EMA_14_1D_PREVIOUS: The 14-period Exponential Moving Average value from the previous daily candle, capturing the previous day’s smoothed trend direction.

• EMA_14_1H: The 14-period Exponential Moving Average calculated on the 1-hour chart, responding quickly to intraday price movements.

• EMA_14_4H: The 14-period Exponential Moving Average calculated on the 4-hour chart, capturing intermediate-term momentum and trend behavior.

• EMA_14_4H_PREVIOUS: The 14-period Exponential Moving Average value from the previous 4-hour candle, showing the last session’s weighted average trend.

• EMA_200: The 200-period Exponential Moving Average, a long-term trend indicator that smooths price data by giving more importance to recent observations.

• EMA_200_15M: The 200-period Exponential Moving Average calculated on the 15-minute chart, tracking long-term direction within short-term intervals.

• EMA_200_15M_PREVIOUS: The 200-period Exponential Moving Average value from the previous 15-minute candle, providing the prior short-term long-trend level.

• EMA_200_1D: The 200-period Exponential Moving Average calculated on the daily chart, reflecting long-term trend direction across days.

• EMA_200_1D_PREVIOUS: The 200-period Exponential Moving Average value from the previous daily candle, recording the prior day’s long-term average.

• EMA_200_1H: The 200-period Exponential Moving Average calculated on the 1-hour chart, showing long-term bias on an hourly basis.

• EMA_200_1H_PREVIOUS: The 200-period Exponential Moving Average value from the previous 1-hour candle.

• EMA_200_4H: The 200-period Exponential Moving Average calculated on the 4-hour chart, smoothing long-term direction over multi-hour periods.

• EMA_200_4H_PREVIOUS: The 200-period Exponential Moving Average value from the previous 4-hour candle.

• EMA_50: The 50-period Exponential Moving Average, a medium-term trend indicator that reacts faster than long-term averages while filtering out short-term noise.

• EMA_50_15M: The 50-period Exponential Moving Average calculated on the 15-minute chart, tracking intermediate price behavior over intraday periods.

• EMA_50_15M_PREVIOUS: The 50-period Exponential Moving Average value from the previous 15-minute candle.

• EMA_50_1D: The 50-period Exponential Moving Average calculated on the daily chart, providing medium-term trend direction on daily intervals.

• EMA_50_1D_PREVIOUS: The 50-period Exponential Moving Average value from the previous daily candle.

• EMA_50_1H: The 50-period Exponential Moving Average calculated on the 1-hour chart, reflecting short- to mid-term momentum within intraday trends.

• EMA_50_1H_PREVIOUS: The 50-period Exponential Moving Average value from the previous 1-hour candle.

• EMA_50_4H: The 50-period Exponential Moving Average calculated on the 4-hour chart, representing medium-term directional bias.

• EMA_50_4H_PREVIOUS: The 50-period Exponential Moving Average value from the previous 4-hour candle.

• MACD_12_26_9: The Moving Average Convergence Divergence indicator, derived from the difference between a 12-period and a 26-period Exponential Moving Average. It includes a 9-period signal line to identify changes in momentum and trend direction.

• MACD_12_26_9_15M: The Moving Average Convergence Divergence indicator calculated on the 15-minute chart.

• MACD_12_26_9_15M_PREVIOUS: The Moving Average Convergence Divergence value from the previous 15-minute candle.

• MACD_12_26_9_1D: The Moving Average Convergence Divergence indicator calculated on the daily chart.

• MACD_12_26_9_1D_PREVIOUS: The Moving Average Convergence Divergence value from the previous daily candle.

• MACD_12_26_9_1H: The Moving Average Convergence Divergence indicator calculated on the 1-hour chart.

• MACD_12_26_9_1H_PREVIOUS: The Moving Average Convergence Divergence value from the previous 1-hour candle.

• MACD_12_26_9_4H: The Moving Average Convergence Divergence indicator calculated on the 4-hour chart.

• MACD_12_26_9_4H_PREVIOUS: The Moving Average Convergence Divergence value from the previous 4-hour candle.

• MACD_12_26_9_HISTOGRAM: The histogram of the Moving Average Convergence Divergence indicator, representing the difference between the MACD line and its signal line to highlight the strength and direction of momentum.

• MACD_12_26_9_HISTOGRAM_15M: The histogram of the Moving Average Convergence Divergence indicator calculated on the 15-minute chart.

• MACD_12_26_9_HISTOGRAM_15M_PREVIOUS: The histogram of the Moving Average Convergence Divergence indicator from the previous 15-minute candle.

• MACD_12_26_9_HISTOGRAM_1D: The histogram of the Moving Average Convergence Divergence indicator calculated on the daily chart.

• MACD_12_26_9_HISTOGRAM_1D_PREVIOUS: The histogram of the Moving Average Convergence Divergence indicator from the previous daily candle.

• MACD_12_26_9_HISTOGRAM_1H: The histogram of the Moving Average Convergence Divergence indicator calculated on the 1-hour chart.

• MACD_12_26_9_HISTOGRAM_1H_PREVIOUS: The histogram of the Moving Average Convergence Divergence indicator from the previous 1-hour candle.

• MACD_12_26_9_HISTOGRAM_4H: The histogram of the Moving Average Convergence Divergence indicator calculated on the 4-hour chart.

• MACD_12_26_9_HISTOGRAM_4H_PREVIOUS: The histogram of the Moving Average Convergence Divergence indicator from the previous 4-hour candle.

• MACD_12_26_9_SIGNAL: The signal line of the Moving Average Convergence Divergence indicator, calculated as a 9-period Exponential Moving Average of the MACD line to generate crossover signals and identify momentum shifts.

• MACD_12_26_9_SIGNAL_15M: The signal line of the Moving Average Convergence Divergence indicator calculated on the 15-minute chart.

• MACD_12_26_9_SIGNAL_15M_PREVIOUS: The signal line of the Moving Average Convergence Divergence indicator from the previous 15-minute candle.

• MACD_12_26_9_SIGNAL_1D: The signal line of the Moving Average Convergence Divergence indicator calculated on the daily chart.

• MACD_12_26_9_SIGNAL_1D_PREVIOUS: The signal line of the Moving Average Convergence Divergence indicator from the previous daily candle.

• MACD_12_26_9_SIGNAL_1H: The signal line of the Moving Average Convergence Divergence indicator calculated on the 1-hour chart.

• MACD_12_26_9_SIGNAL_1H_PREVIOUS: The signal line of the Moving Average Convergence Divergence indicator from the previous 1-hour candle.

• MACD_12_26_9_SIGNAL_4H: The signal line of the Moving Average Convergence Divergence indicator calculated on the 4-hour chart.

• MACD_12_26_9_SIGNAL_4H_PREVIOUS: The signal line of the Moving Average Convergence Divergence indicator from the previous 4-hour candle.

• PRICE_CLOSE: The closing price of the asset for the current timeframe, representing the final traded price within that candle.

• PRICE_CLOSE_15M: The closing price of the current 15-minute candle.

• PRICE_CLOSE_15M_PREVIOUS: The closing price of the previous 15-minute candle.

• PRICE_CLOSE_1D: The closing price of the current daily candle.

• PRICE_CLOSE_1D_PREVIOUS: The closing price of the previous daily candle.

• PRICE_CLOSE_1H: The closing price of the current 1-hour candle.

• PRICE_CLOSE_1H_PREVIOUS: The closing price of the previous 1-hour candle.

• PRICE_CLOSE_4H: The closing price of the current 4-hour candle.

• PRICE_CLOSE_4H_PREVIOUS: The closing price of the previous 4-hour candle.

• PRICE_HIGH: The highest transaction price reached during the current candle, marking the session’s peak market value.

• PRICE_HIGH_15M: The highest price reached during the current 15-minute candle.

• PRICE_HIGH_15M_PREVIOUS: The highest price reached during the previous 15-minute candle.

• PRICE_HIGH_1D: The highest price reached during the current daily candle.

• PRICE_HIGH_1D_PREVIOUS: The highest price reached during the previous daily candle.

• PRICE_HIGH_1H: The highest price reached during the current 1-hour candle.

• PRICE_HIGH_1H_PREVIOUS: The highest price reached during the previous 1-hour candle.

• PRICE_HIGH_4H: The highest price reached during the current 4-hour candle.

• PRICE_HIGH_4H_PREVIOUS: The highest price reached during the previous 4-hour candle.

• PRICE_LOW: The lowest transaction price reached during the current candle, showing the minimum value sellers were willing to accept.

• PRICE_LOW_15M: The lowest price reached during the current 15-minute candle.

• PRICE_LOW_15M_PREVIOUS: The lowest price reached during the previous 15-minute candle.

• PRICE_LOW_1D: The lowest price reached during the current daily candle.

• PRICE_LOW_1D_PREVIOUS: The lowest price reached during the previous daily candle.

• PRICE_LOW_1H: The lowest price reached during the current 1-hour candle.

• PRICE_LOW_1H_PREVIOUS: The lowest price reached during the previous 1-hour candle.

• PRICE_LOW_4H: The lowest price reached during the current 4-hour candle.

• PRICE_LOW_4H_PREVIOUS: The lowest price reached during the previous 4-hour candle.

• PRICE_OPEN: The opening price of the asset for the current candle, marking the first recorded trade within the timeframe.

• PRICE_OPEN_15M: The opening price of the current 15-minute candle.

• PRICE_OPEN_15M_PREVIOUS: The opening price of the previous 15-minute candle.

• PRICE_OPEN_1D: The opening price of the current daily candle.

• PRICE_OPEN_1D_PREVIOUS: The opening price of the previous daily candle.

• PRICE_OPEN_1H: The opening price of the current 1-hour candle.

• PRICE_OPEN_1H_PREVIOUS: The opening price of the previous 1-hour candle.

• PRICE_OPEN_4H: The opening price of the current 4-hour candle.

• PRICE_OPEN_4H_PREVIOUS: The opening price of the previous 4-hour candle.

• PRICE_VOLUME: The total traded volume of the asset during the current timeframe, showing the overall quantity exchanged and market activity level.

• PRICE_VOLUME_15M: The traded volume during the current 15-minute candle.

• PRICE_VOLUME_15M_PREVIOUS: The traded volume during the previous 15-minute candle.

• PRICE_VOLUME_1D: The traded volume during the current daily candle.

• PRICE_VOLUME_1D_PREVIOUS: The traded volume during the previous daily candle.

• PRICE_VOLUME_1H: The traded volume during the current 1-hour candle.

• PRICE_VOLUME_1H_PREVIOUS: The traded volume during the previous 1-hour candle.

• PRICE_VOLUME_4H: The traded volume during the current 4-hour candle.

• PRICE_VOLUME_4H_PREVIOUS: The traded volume during the previous 4-hour candle.

• PRICE_VOLUME_WEIGHTED: The Volume-Weighted Average Price, representing the average traded price during the timeframe weighted by transaction volume. It reflects the fair market value based on where most trading occurred.

• PRICE_VOLUME_WEIGHTED_15M: The Volume-Weighted Average Price calculated on the current 15-minute candle.

• PRICE_VOLUME_WEIGHTED_15M_PREVIOUS: The Volume-Weighted Average Price from the previous 15-minute candle.

• PRICE_VOLUME_WEIGHTED_1D: The Volume-Weighted Average Price on the current daily candle.

• PRICE_VOLUME_WEIGHTED_1D_PREVIOUS: The Volume-Weighted Average Price from the previous daily candle.

• PRICE_VOLUME_WEIGHTED_1H: The Volume-Weighted Average Price on the current 1-hour candle.

• PRICE_VOLUME_WEIGHTED_1H_PREVIOUS: The Volume-Weighted Average Price from the previous 1-hour candle.

• PRICE_VOLUME_WEIGHTED_4H: The Volume-Weighted Average Price on the current 4-hour candle.

• PRICE_VOLUME_WEIGHTED_4H_PREVIOUS: The Volume-Weighted Average Price from the previous 4-hour candle.

• PRICE_VOLUME_WEIGHTED_CLOSE: The volume-weighted average of closing prices during the current timeframe, which places more emphasis on closing prices that occur with higher trading volume.

• PRICE_VOLUME_WEIGHTED_CLOSE_15M: The volume-weighted average of closing prices calculated for the current 15-minute candle.

• PRICE_VOLUME_WEIGHTED_CLOSE_15M_PREVIOUS: The volume-weighted average of closing prices from the previous 15-minute candle.

• PRICE_VOLUME_WEIGHTED_CLOSE_1D: The volume-weighted average of closing prices for the current daily candle.

• PRICE_VOLUME_WEIGHTED_CLOSE_1D_PREVIOUS: The volume-weighted average of closing prices from the previous daily candle.

• PRICE_VOLUME_WEIGHTED_CLOSE_1H: The volume-weighted average of closing prices for the current 1-hour candle.

• PRICE_VOLUME_WEIGHTED_CLOSE_1H_PREVIOUS: The volume-weighted average of closing prices from the previous 1-hour candle.

• PRICE_VOLUME_WEIGHTED_CLOSE_4H: The volume-weighted average of closing prices for the current 4-hour candle.

• PRICE_VOLUME_WEIGHTED_CLOSE_4H_PREVIOUS: The volume-weighted average of closing prices from the previous 4-hour candle.

• PRICE_VOLUME_WEIGHTED_OPEN: The volume-weighted average of opening prices during the current timeframe, emphasizing periods where higher trading volume occurred near the start of each candle.

• PRICE_VOLUME_WEIGHTED_OPEN_15M: The volume-weighted average of opening prices calculated for the current 15-minute candle.

• PRICE_VOLUME_WEIGHTED_OPEN_15M_PREVIOUS: The volume-weighted average of opening prices from the previous 15-minute candle.

• PRICE_VOLUME_WEIGHTED_OPEN_1D: The volume-weighted average of opening prices for the current daily candle.

• PRICE_VOLUME_WEIGHTED_OPEN_1D_PREVIOUS: The volume-weighted average of opening prices from the previous daily candle.

• PRICE_VOLUME_WEIGHTED_OPEN_1H: The volume-weighted average of opening prices for the current 1-hour candle.

• PRICE_VOLUME_WEIGHTED_OPEN_1H_PREVIOUS: The volume-weighted average of opening prices from the previous 1-hour candle.

• PRICE_VOLUME_WEIGHTED_OPEN_4H: The volume-weighted average of opening prices for the current 4-hour candle.

• PRICE_VOLUME_WEIGHTED_OPEN_4H_PREVIOUS: The volume-weighted average of opening prices from the previous 4-hour candle.

• RSI_14: The 14-period Relative Strength Index, a momentum oscillator that measures the speed and magnitude of recent price changes to identify overbought and oversold conditions on a scale from 0 to 100.

• RSI_14_15M: The 14-period Relative Strength Index calculated on the 15-minute chart.

• RSI_14_15M_PREVIOUS: The 14-period Relative Strength Index value from the previous 15-minute candle.

• RSI_14_1D: The 14-period Relative Strength Index calculated on the daily chart.

• RSI_14_1D_PREVIOUS: The 14-period Relative Strength Index value from the previous daily candle.

• RSI_14_1H: The 14-period Relative Strength Index calculated on the 1-hour chart.

• RSI_14_1H_PREVIOUS: The 14-period Relative Strength Index value from the previous 1-hour candle.

• RSI_14_4H: The 14-period Relative Strength Index calculated on the 4-hour chart.

• RSI_14_4H_PREVIOUS: The 14-period Relative Strength Index value from the previous 4-hour candle.

• RSI_14_HISTOGRAM: The Relative Strength Index histogram showing the difference between the RSI and its smoothed signal line, visualizing the acceleration or deceleration of momentum.

• RSI_14_SIGNAL: The signal line of the Relative Strength Index, a smoothed average of RSI values used to detect crossover points that may indicate changes in market momentum.

• SMA_14: The 14-period Simple Moving Average, calculated by taking the arithmetic mean of closing prices over the past 14 periods to provide a smoothed view of price trends.

• SMA_14_15M: The 14-period Simple Moving Average calculated on the 15-minute chart.

• SMA_14_15M_PREVIOUS: The 14-period Simple Moving Average value from the previous 15-minute candle.

• SMA_14_1D: The 14-period Simple Moving Average calculated on the daily chart.

• SMA_14_1D_PREVIOUS: The 14-period Simple Moving Average value from the previous daily candle.

• SMA_14_1H: The 14-period Simple Moving Average calculated on the 1-hour chart.

• SMA_14_1H_PREVIOUS: The 14-period Simple Moving Average value from the previous 1-hour candle.

• SMA_14_4H: The 14-period Simple Moving Average calculated on the 4-hour chart.

• SMA_14_4H_PREVIOUS: The 14-period Simple Moving Average value from the previous 4-hour candle.

• SMA_200: The 200-period Simple Moving Average, showing the average closing price over the last 200 periods, commonly used to identify long-term trend direction.

• SMA_200_15M: The 200-period Simple Moving Average calculated on the 15-minute chart.

• SMA_200_15M_PREVIOUS: The 200-period Simple Moving Average value from the previous 15-minute candle.

• SMA_200_1D: The 200-period Simple Moving Average calculated on the daily chart.

• SMA_200_1D_PREVIOUS: The 200-period Simple Moving Average value from the previous daily candle.

• SMA_200_1H: The 200-period Simple Moving Average calculated on the 1-hour chart.

• SMA_200_1H_PREVIOUS: The 200-period Simple Moving Average value from the previous 1-hour candle.

• SMA_200_4H: The 200-period Simple Moving Average calculated on the 4-hour chart.

• SMA_200_4H_PREVIOUS: The 200-period Simple Moving Average value from the previous 4-hour candle.

• SMA_50: The 50-period Simple Moving Average, reflecting the intermediate-term trend based on the average closing prices of the past 50 periods.

• SMA_50_15M: The 50-period Simple Moving Average calculated on the 15-minute chart.

• SMA_50_15M_PREVIOUS: The 50-period Simple Moving Average value from the previous 15-minute candle.

• SMA_50_1D: The 50-period Simple Moving Average calculated on the daily chart.

• SMA_50_1D_PREVIOUS: The 50-period Simple Moving Average value from the previous daily candle.

• SMA_50_1H: The 50-period Simple Moving Average calculated on the 1-hour chart.

• SMA_50_1H_PREVIOUS: The 50-period Simple Moving Average value from the previous 1-hour candle.

• SMA_50_4H: The 50-period Simple Moving Average calculated on the 4-hour chart.

• SMA_50_4H_PREVIOUS: The 50-period Simple Moving Average value from the previous 4-hour candle.