Dakko AI Partners With Databricks to Transform Risk Management in Digital Assets with AI
Press Release - New York City, NY – 10 December 2024
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New Built on Databricks offering will enable customers to predict and measure risks in Digital Assets with unprecedented certainty, optimizing transactions and capital efficiency
New York City, NY – 10 December 2024 – Dakko AI, a leader in intelligent risk management and observability in web3, today announced the expansion of its partnership with Databricks, the Data and AI company, with the launch of its Market Impact offering, a Built on Databricks solution that leverages AI to estimate and optimize transaction cost, risk and strategy for companies with exposure to Digital Assets.
Risk managers, investors and infrastructure players in digital assets struggle to balance returns and risks due to fragmented markets, unpredictable transaction costs, and a lack of risk predictive tools. Traditional risk management and pricing methods like VWAP or VWM do not work. The lack of key risk predictors hinders prediction of depegs, liquidity, and transaction costs, thereby reducing capital efficiency.
With Dakko AI’s risk management platform and the Databricks Data Intelligence Platform, joint customers can leverage advanced AI to get their key risk indicators under a single pane of glass: Trade execution optimization, liquidity, systemic risk, scenario testing, and backtesting of algorithmic strategies
The Databricks Data Intelligence Platform democratizes access to analytics and intelligent applications by marrying customers’ data with powerful AI models tuned to the unique characteristics of their business. The platform is built on a lakehouse foundation of open data formats and open governance to ensure that all data is completely within the customers’ control.
The Dakko Risk Predictors Platform is a comprehensive risk management suite featuring advanced AI-driven predictive capabilities that allow users to proactively mitigate the unique and unpredictable risks in digital assets. Using the latest research in adaptive data representations and Uncertainty Quantification (UQ), Dakko enables Risk Managers, Portfolio Managers and Compliance functions to assess risk in digital assets, optimize for liquidity, and execute trades efficiently for optimal operations, risk mitigation and risk-adjusted returns.
“I was very impressed by Dakko AI's vision and proprietary AI technologies which address key challenges for risk managers and investors in digital assets today. Companies have already lost 10s of billions of dollars from unmitigated risk exposures in digital asset markets. It does not have to be that way. Advances in AI can be used to significantly improve risk prediction and measurement going forward," said Matthew Mezger, Chief Product Officer at Dakko AI, and Previously Head of Trading at DCG.
Dakko’s AI-powered, data-driven risk modeling leverages advanced uncertainty quantification to optimize trade execution, mitigate risk, and anticipate critical market events. Some of the key capabilities available to Databricks customers include:
- 24/ 7 Algo Trade Size Optimization: Upon receiving a trade signal in any timezone, leverage fast AI-powered real-time insights and determine the optimal trade size. It’s like having AI-powered precision for intraday seasonality prediction at your fingertips
- Efficient Block Trade Execution: Predict slippage with precision before executing large block trades. Meet execution mandates while maximizing efficiency and minimizing costs
- Depeg Protection & Doomsday Readiness: Stay ahead with stablecoin depeg prediction. Achieve superior capital efficiency, execute timely hedges, and strategically upsize for extreme market scenarios
“We’ve been impressed by Dakko AI’s innovative approach to risk prediction and uncertainty quantification in the digital assets industry and how the Risk Predictors Platform addresses it,” said Heather Akuiyibo, VP of Go-To-Market at Databricks. “Our partnership will leverage the benefits of Dakko’s Risk Predictors and the Databricks Data Intelligence Platform to provide our customers with best-in-class AI-driven risk management and observability in digital asset ecosystems.”
The first release of the new solution is now in preview. To learn more about the partnership with Databricks, and the Risk Management Customer Innovation Program offered by Dakko AI to a limited number of institutions, please visit Dakko AI's Webinar Event on 16 December 2024, 11am EST. Learn more about the Databricks Built On Partner Program here.
About Dakko AI
Dakko AI is one of the world’s leading, innovative companies in AI observability. From its locations in New York, London and Zug it aims to serve clients worldwide with proprietary
risk management AI and infrastructure. Dakko AI combines advanced techniques in deep learning and systems security into a product that measurably improves risk-adjusted performance and advances observability and accountability to create trust in distributed and decentralized systems.