It is now confirmed that Microsoft has tapped LeverFI to partner in their "development of A.I. solutions for decentralized finance (DeFi) using the Microsoft Azure OpenAI Service."  The move aims to address the challenges currently facing the DeFi industry.

LeverFi, previously known as Ramp, also issues their own coin LEVER.   The platform offers leveraged trading up to 10x permission less and decentralized. 

LeverFi is far from unknown, and their coin trades on major exchanges like Binance and Coinbase.  

But they're not huge either, their token's market cap of around $25 million means they don't even rank in the top 500. 

Current Challenges in Decentralized Finance

Recent statistics highlight various challenges in the DeFi sector. Notably, Peckshield reported that security breaches led to losses of approximately $480 million in the first half of 2023. Furthermore, certain lending platforms face risk management issues, and the manual processes often required by users can introduce additional risks and complexities.

The Role of Morpheus in DeFi Management

Named after 'The Matrix' character, LeverFi and Microsoft's joint project, Morpheus, is an A.I. portfolio management tool designed to assist users in navigating the DeFi landscape. By leveraging machine learning, Morpheus aims to provide insights into portfolio management and offer real-time on-chain monitoring.

Morpheus encompasses two A.I. engines: one for protocols and another for user wallets. The protocol engine is intended to identify and respond to security exploits or other protocol-related risks, while the user engine is focused on monitoring portfolio positions, aiming to alert users if market conditions change adversely.

LeverFi’s Additional Initiatives

Beyond Morpheus, LeverFi has expressed an interest in exploring other areas within the DeFi sector in conjunction with Microsoft's A.I. infrastructure. These areas include asset tokenization, integration with real-world assets, and streamlining on/off-chain settlements, with initial efforts already underway in Hong Kong. Crypto consultant Brian Miller says this will likely play out to be a smart move by both companies.

LeverFi, known for its on-chain, cross-margin platform on Ethereum, is working towards introducing improvements in the existing DeFi infrastructure. The company emphasizes its commitment to enhancing the user experience and security within the sector.

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