Performance proof

Xtreamly as the volatility intelligent layer, provides AI-based model API for volatility prediction and market classification in the cryptocurrency market.

Extreme volatility classifications support DeFi strategies by enabling rapid response to large price movements for high-frequency trading. Triggering automated risk mitigation protocols during extreme market conditions.

Use-cases

Xtreamly offers a structured classification framework for Standard deviation as well as Implied volatility predictions for scenario-based investment decision-making. This approach streamlines the incorporation of volatility forecasts across various use cases, enhancing decision-making and risk management.

Volatiltiy predciton and Classification Framework Unlocks:

Strategy Allocation by Volatility	Dynamically select yield strategies based on current market regime (e.g., risk-on for Low Vol, risk-off for High Vol).	Enhances yield targeting, reduces risk exposure.	Low, Medium, High
Adaptive Rebalancing Timing	Adjust rebalancing cadence based on state duration likelihood (e.g., delay in stable conditions).	Reduces gas fees and avoids overtrading.	Mostly Low, Medium
Volatility-Tiered Strategy Packaging	Label and gate yield products by the volatility states they are optimized for.	Improves UX clarity and reduces capital misallocation.	All
Risk Profile-Based Strategy Filtering	Match user-defined risk profiles to strategy sets (e.g., conservative users only see low-vol-compatible vaults).	Personalizes experience, broadens user base.	Low, Medium
Multichain Volatility-Aware Routing	Compare volatility conditions across chains to route funds where risk-adjusted yield is highest.	Maximizes cross-chain capital efficiency.	All
Liquidity Provision Throttling	Pause or reduce LP provisioning during high volatility to avoid impermanent loss.	Preserves capital, avoids loss from turbulence.	High
Agent-Based Auto-Hedging	Enable auto-hedging or position protection via agent triggers tied to volatility state transitions.	Enables automation with safety boundaries.	Medium → High
Vault Provider Plugin/API	Offer volatility classification as a plugin/API for use by vault and structured product protocols.	Adds quant intelligence to ecosystem protocols.	All
Strategy Backtesting by State Transition	Evaluate strategy returns and risks based on past volatility state changes.	Data-driven strategy validation and forecasting.	All
Insurance Pricing / Risk Pooling	Price risk or insure vaults based on current and predicted volatility states.	Creates risk-adjusted DeFi insxurance products.	Medium, High

Performace

Here are some practical defi scenarios showing the power of our AI models:

Performance Case for Market Maker (real results):

Backtesting of Looped Trading Strategy

loopd leverage trading results, powerd with Xtremaly Ai models

Hedging Uniswap Liquidity Position

Plots: https://github.com/Xtreamly-Team/xtreamly-ai-public/tree/main/volatility/results/scores_example

Full Documentation

Documents: https://github.com/Xtreamly-Team/xtreamly-ai-public/blob/main/docs/AI%20Volatility%20by%20Xtreamly.pdf

Looped-leverage strategy backtest on Aave: https://github.com/Xtreamly-Team/xtreamly-ai-public/tree/main/loop_trading

Uniswap hedge position: https://github.com/Xtreamly-Team/xtreamly-ai-public/blob/main/docs/Hedging%20Uniswap%20Liquidity%20Positions%20with%20GMX%20Perpetuals%20and%20Xtreamly%20Volatility%20Forecast.pdf