Risk management of future of Defi using artificial intelligence as a tool

Title

Risk management of future of Defi using artificial intelligence as a tool

Creator

Sah J.; Padma S.; Yanamandra R.; Irfan M.

Description

This chapter explores AI's pivotal roles in managing risks within DeFi, emphasizing strategic implementation to enhance risk assessment, management, and decisionmaking processes for a better user experience. The convergence of AI and DeFi presents unprecedented opportunities, fostering transparency and decentralization. Drawing from diverse sources, the study evaluates AI's effectiveness, particularly in machine learning, in addressing emerging risks. It focuses on how AI can guide DeFi's future while managing market and credit risks through tasks like data preparation, modeling, stress testing, and validation. Additionally, AI aids in data quality assurance, text mining, and fraud detection. Emphasis is placed on identifying and managing risks that could hinder DeFi's future, highlighting key AI techniques. Given the financial industry's ongoing transformation, these insights are increasingly vital. 2024, IGI Global. All rights reserved.

Source

AI-Driven Decentralized Finance and the Future of Finance, pp. 257-278.

Date

2024-01-01

Publisher

IGI Global

Coverage

Sah J., Amity University, Maharashtra, India; Padma S., Amity University, Maharashtra, India; Yanamandra R., Skyline University College, University City of Sharjah, United Arab Emirates; Irfan M., Christ University, Bengaluru, India

Rights

Restricted Access

Relation

ISBN: 979-836936323-2; 979-836936321-8

Format

Online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.4018/979-8-3693-6321-8.ch011

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85207622224&doi=10.4018%2f979-8-3693-6321-8.ch011&partnerID=40&md5=d4e6ee342210de46c9856f947fa46100