Decentralized crypto exchange PancakeSwap is set to introduce CupcakeHop, an artificial intelligence (AI)-powered portfolio management tool.

Developed by Bril Finance and backed by PancakeSwap, the tool is designed to improve decentralized finance (DeFi) investment management.

CupcakeHop, set to launch in August, aims to make DeFi accessible to a broader range of users with tailored investment strategies and real-time risk management. 

Related: PancakeSwap integrates Zyfi for gas-free DeFi trading

AI-driven portfolio management 

In an interview with Cointelegraph, Connor O’Shea, CEO of Bril Finance and the developer behind CupcakeHop, said the AI portfolio management feature automates investment strategies based upon a user-defined goal and real-time market conditions:

“It’s continually adjusting strategies to optimize performance with the intended purpose of maximizing returns.”

Related: DEX adoption needs greater capital efficiency — PancakeSwap product lead

User-controlled risk management

The new tool features a risk engine that will identify and isolate potential risks, automatically rebalancing pools to ensure the security of user-deposited assets.

On the topic of risk management, O’Shea speculated the incorporation of a risk management slider element, telling Cointelegraph:

“What I envision is effectively a risk slider that’s proportional to return. If you’re a user, you come in, and you get three buttons: high risk, medium risk, or low risk. And then, for each of those, we could have a return profile.” 

When discussing the purpose of such a slider tool, O’Shea explained that it would make “DeFi more approachable, especially for newcomers.”

On a more humorous note, O’Shea concluded the discussion of the slider idea by likening the functionality to that of a nuclear weapon's launch sequence:

“I’m thinking about putting a plastic cover over the high-risk button. You have to, like the nuclear launch code, lift the plastic lid to press the red button on the high-risk."

Related: PancakeSwap seeks 300M CAKE token supply revamp

Market accuracy and transparency

CupcakeHop aims to address the issue of reporting accuracy by offering users clear and precise information about their investments.

“A lot of the numbers that you’ll see on dashboards and external reporting don’t actually match the tokens that are deposited into a user’s wallet. [...] we’re trying to make sure that users get an accurate depiction of what’s going on." 

Bril Finance’s average monthly trading volume was over $27 million last quarter and $82.6 million in total since late March.

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