tl;dr: SingularityDAO represents a new type of financial product innovation in the DeFi space.

With the explosion of crypto assets over the past 10 years, we’ve seen all kinds of new projects come online.

Of course, not all of them can be “Top 10” coins and obviously not all of them can be “Top 100” coins on CMC.

However, just because they aren’t massive projects in terms of market cap or awareness, doesn’t mean they have no value today and no long term potential in the future.

The Challenge of Liquidity

The challenge comes from the relative low liquidity that these projects offer when it comes to trading volumes. So, for example, let’s say you fall in love with a project and want to buy $10,000 or $5,000 or even, in some cases, $1,000 worth of their tokens.

If the trading volumes are low enough, you are going to see a great deal of “price slippage” meaning you’re not going to get the quoted price and you’ll end up moving the market, potentially significantly.

That’s not where you want to be and it’s not great for the project because it demonstrates volatility, something that other investors may shy away from.

Crypto ETFs

To fill this market need, SingularityNet, the leading platform for decentralized-based AI is rolling out a project called SingularityDAO or “SingDAO.”

What’s cool about SingDAO is that it all can be managed by a human, by an AI, or by a combination of the two, but the idea is that pooling multiple tokens with low liquidity into “funds of tokens” or what they call “DynaSets” will encourage more people to participate in the “long tail” of DeFi and add significantly greater liquidity to each of these “long tail” tokens.

So, instead of buying 1 small cap stock, for example, you might be a “small cap” fund or a “small cap sector fund” that includes a few of the lower liquidity tokens that are appealing to you.

You can even go one level above that with a “MetaSet” which is like an index fund of all of the DynaSets within SingularityDAO.

The cool part is that these DynaSets and MetaSets can be programmed to handle and benefit from the various yield farming opportunities that exists within each of these tokens, enabling you to generate income off your holdings which would otherwise be (a) time-consuming and (b) expensive to manage.

This whole network is managed by the SingDAO governance token, which ensures that the offerings on the platform are of the highest quality.

Essentially, SingularityDAO is kind of like the Vanguard of Crypto where anyone can be a partial fund manager. The only thing it is lacking is a community of “Bogleheads,” but I guess that will come with time.

I’m excited to see how this evolves because it’s a critical piece of the DeFi product offering as it brings new opportunities and new participants into the market.