The Autonomous AI

Alice (AIus) is an autonomous DeFi token built on the Stellar network that uses non-correlated assets in order to achieve stable returns for the Stellar Drones.

Alice is able to provide consistent returns through two mechanisms: the use of a portfolio of non-correlated assets, and an automated system for deflationary compounding.

Alice is completely automated in the process of hedging her portfolio of non-correlated assets using non-negotiable rules for deflationary compounding in order to provide returns over longer time horizons.

Key Mechanisms

The XY Axis Connection

Central to the function of Alice is the XY Axis, built by Siemens to amass his staggering wealth. This is a completely automated volatility filter that channels trades through its deflationary compounding system.

The deflationary compounding system maintained by Alice works by continuously rebalancing her portfolio of two separate assets, X & Y, while also permanently removing both X & Y tokens from circulation.

How Deflationary Compounding Works

One way to understand deflationary compounding is to think of it as the opposite of traditional compounding, which involves the gradual growth of an asset or currency through the accumulation of interest or other forms of value. In a deflationary compounding system, the supply of the currency is reduced over time, which can lead to an increase in the value of the remaining tokens.

The potential benefit to using deflationary compounding is that it can help to stabilize the value of the currency, as the decreasing supply may lead to an increase in demand. This can make the currency more attractive to token holders, as it may be seen as a more reliable store of value. Additionally, deflationary compounding can incentivize early adopters and users of the currency, as they may stand to benefit from the increase in value that occurs as the supply decreases.

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