DeFi Technologies Inc, a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralized finance (DeFi), is pleased to announce that it has increased its stake in Neuronomics AG, a Swiss asset management firm “specializing in artificial intelligence and model-driven quantitative trading strategies, to 52.5%.”
This acquisition follows DeFi Technologies‘ earlier subscription to “a capital increase in Neuronomics, where the Company acquired a 10% stake.”
The acquisition of the majority stake in Neuronomics reportedly aligns with DeFi Technologies’ strategy to “expand its presence in artificial intelligence, asset management and trading sectors while diversifying its revenue streams.”
This acquisition complements DeFi Technologies’ existing initiatives, including the DeFi Alpha arbitrage trading desk, which will “benefit from Neuronomics’ technological expertise and market insights.”
Neuronomics, founded in Switzerland, has established itself as a key player in asset management by “developing advanced quantitative trading strategies based on artificial intelligence (AI) and computational neuroscience.”
The firm holds an asset management license from the Swiss Financial Market Supervisory Authority (FINMA), enabling it to “manage and administer financial assets on behalf of clients.”
Neuronomics’ research-driven approach focuses “on two key areas: AI and Computational Neuroscience in Finance.”
Neuronomics has supported the application of advanced AI models in financial settings, “delivering AI strategies that outperform market index across all key metrics.”
The firm’s proprietary AI models combine multiple algorithms “to enhance predictive accuracy and reduce model overfitting.”
Their approach translates AI model outputs into “portfolio allocations, optimizing asset distribution to maximize returns while managing risk.”
Additionally, Neuronomics is at the “forefront” of customizing Large Language Models (LLMs) for “predicting asset price developments based on real-time market news.”
This capability positions Neuronomics to identify “emerging investment narratives well ahead of competitors, offering a distinct edge in the market).”
Neuronomics also explores how human “cognitive biases and emotional responses shape financial behavior, uncovering market inefficiencies that traditional strategies often overlook.”
Through computational neuroscience, Neuronomics models the neuronal processes of traders, “identifying predictable market behaviors that result from overreactions or emotional trading.”
This approach has been successful in the cryptocurrency market, which is “highly influenced by emotional decision-making.”
Since launching their neurofinance-based crypto strategy in July 2020, Neuronomics has consistently “delivered high risk-adjusted returns with minimal correlation to traditional markets”
Neuronomics leverages AI technology to “offer high risk-adjusted returns in the cryptocurrency market.”
Their developed AI-powered quantitative strategy, set to launch with DeFi Technologies, has demonstrated solid performance, with forward-testing analysis showing “annual returns of 80% and significantly reduced drawdowns and volatility compared to passive market exposure.”
The AI-driven model removes “human bias, enhances consistency, and dynamically adapts to evolving market conditions, ensuring sustained performance even in volatile markets.”
These strategies are built on a diversified, “long-only crypto portfolio, rebalanced based on AI models that identify market inefficiencies such as momentum and reversal opportunities.”
The AI-driven approach has consistently “outperformed benchmarks like the CCi30 index, achieving a Sharpe Ratio greater than 1, underscoring its superior risk-adjusted returns.”
Their Neurofin strategy underscores this resilience by generating “positive net returns amid “a market downturn exceeding 20% over the past month.”
Neuronomics’ expertise in AI-driven strategies will “enhance DeFi Technologies’ capabilities, especially as a complement to DeFi Alpha, its specialized arbitrage trading desk, which focuses on identifying and capitalizing on low-risk opportunities within the cryptocurrency market.”