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September 15, 2022 - DeFinity Markets (powered by DMALINK), the institutional digital asset ECN has launched hourly crypto market anomaly signals to enhance the current daily offering via the new Clarity Absolute App and as datasets available on Ocean Market across Ethereum and Polygon networks.
Anomaly detection is generally used to automatically detect out-of-distribution behaviours in asset prices. On an hourly basis, approx. 5 minutes past each hour (UTC), a new anomaly score (0-100%) is generated by deep learning AI models for each of the 12 supported crypto assets, (AAVE, ADA, BNB, BTC, DOT, ETH, LTC, MATIC, SOL, UNI, XMR, XRP). The deep learning AI models look at a combination of market data, context data and on-chain data to detect irregular patterns. These may be the result of undisclosed new information, ripple effects from correlated assets, or structural breaks in an asset’s behaviour versus the broader market. This technology can promptly discover these hidden market data aberrations, which would be otherwise undetectable, and provide an early warning on potential volatility events, making it a powerful risk management tool.
Thanks to the embedded collaboration with Axyon AI, a leading European FinTech with expertise in Deep Learning AI for asset management and trading firms, DeFinity Markets has been providing its customers and token holders access to premium crypto market anomaly detection scores since September 2021. The technology has proven extremely valid to monitor crypto market data and generate early warnings regarding (i) unexpected price behaviours, (ii) anomalous liquidity changes, and (iii) inconsistent transactions that could be a sign of broader volatility events on price.
Manu Choudhary, co-founder of DeFinity, says, “From a risk management and trading perspective the new hourly Anomaly Detector has the potential to play a pivotal role in giving portfolio managers early warning of the presence and scale of volatility events or directional changes in the 12 target crypto assets. Allowing them to either reduce their risk positions, engage in portfolio hedging or fade into volatility / directional changes to generate alpha in the spot or options market.”
Michael Siwek, DeFinity co-Founder, added, “The anomaly detector could give digital asset stakeholders forewarning of a network attack, regulatory intervention or watching a country bail out of assets and predicting crisis.”
Chris Park CFO at DeFinity Markets further commented, "We were the first to create and launch AI powered crypto anomaly detection in 2021 and in less than 12 months we have managed to exponentially improve the accuracy, reliability and shortened the predictive window to 60 minutes, creating a truly remarkable and ground-breaking technology".
The hourly signals are available via the Clarity Absolute app available via sign-up here.
The hourly signals have also been released on Ocean Market at the following links:
Daily crypto anomaly scores, accessible via Ethereum network
Daily crypto anomaly scores, accessible via Polygon network
Ocean Market is a marketplace to find, publish and trade data sets in the Ocean Network.
DeFinity operates an institutional digital asset ECN for Cryptocurrencies and wholesale Central Bank Digital Currencies (CBDC). In addition to supporting decentralised financial services for FX clearing, DeFinity is a layer-2 protocol with a focus on interoperability, utilising existing blockchain frameworks such as WeOwn, Ethereum, Polkadot, Binance Smart Chain and Cardano.
DMALINK is a data-centric ECN for professional Foreign Exchange traders streaming anonymous and bilateral, proactively tailored, and sustainable pricing with a particular focus on Emerging Markets, Scandie crosses, and CE3. We serve industry leaders, including Banks, Funds, Corporates, and Proprietary Trading Firms, with a specific demand for sustainable liquidity access across non-G-7 pairs.
