The integration of AI and decentralized finance (DeFi) is no longer a novelty. Several years ago, many well-known projects began merging these two hot fields. Examples include Yearn Finance's automated yield aggregator and Aave's credit scoring system. These efforts continuously drive the combination of AI and DeFi, making people realize that the synergy between AI and DeFi creates a "1+1>2" effect, complementing each other like adding wings to a tiger.

As Vitalik Buterin once said: "Over the past decade, the intersection of crypto and AI has become evident, particularly in decentralized exchanges (DEX) with robot market-making. Extending further to prediction markets and arbitration mechanisms in DAOs, there are many promising pathways."

What Can AI Bring to DeFi?

It's clear that the challenges DeFi currently faces in its development primarily revolve around complexity, security, and user experience—issues that AI can effectively address.

Cybersecurity and fraud detection have always been core topics in DeFi security. In 2023, the DeFi sector experienced 76 hacking incidents, resulting in approximately $1.1 billion in losses. AI's application in DeFi risk management demonstrates immense potential. By analyzing vast amounts of data, AI can identify market, operational, and credit risks, thereby reducing losses and improving overall risk management strategies.

Beyond security issues, DeFi's complexity also limits its widespread adoption. Users often struggle to understand and operate complex protocols, compounded by market volatility and credit risks that further increase participation barriers. AI plays a crucial role in reducing DeFi's complexity. Through AI-driven chatbots and virtual assistants, users can interact more easily with DeFi platforms. These tools guide users through complex DeFi operations, enhancing the user experience and lowering entry barriers.

Additionally, AI can analyze user portfolios, token trends, and whale transactions to provide tailored advice, enabling users without technical backgrounds to make informed investment decisions. In an ideal scenario, AI can also offer fully automated trading solutions for DeFi. With predefined investment strategies, users can "free their hands." By analyzing historical data, tracking price fluctuations in real-time, predicting market trends, and executing trades automatically, AI makes DeFi trading more intelligent and data-driven.

In this field of AI and DeFi integration, many projects have already made attempts. However, the author believes that the ones truly emerging from this race will be those that understand DeFi better, not necessarily AI.

This brings us to the veteran DeFi project Bella Protocol. On September 24, Bella Protocol announced a rebranding and launched a new AI-powered product on Telegram: Bella Signal Bot.

Uncovering Bella: Binance's First LaunchPool Project

Many newcomers to crypto may not be familiar with Bella Protocol, but among seasoned insiders, it's undoubtedly a veteran DeFi project worth watching. Four years ago, Bella launched as Binance's first new coin mining (LaunchPool) project. This milestone not only solidified Bella's position in the DeFi space but also showcased its forward-thinking approach in the industry.

Bella Protocol has garnered support from numerous renowned investment institutions, including Binance Labs, Arrington Capital, DWF Labs, Alphabit, and RockX. These strategic investors provide not only strong financial backing but also valuable resources and expertise for market expansion and technological innovation.

Since its inception in 2020, Bella has been committed to simplifying users' trading experiences and optimizing crypto yields across multiple chains. Its products are deployed on blockchain networks such as zkSync, Mantle, Manta Pacific, and Ethereum, aiming to offer users more convenient and efficient DeFi services.

Earlier this year, Bella partnered with Phoenix (PHB) to leverage Phoenix's AI computing layers—SkyNet, AlphaNet, and Hypermatrix—to build customized AI-driven features for its DeFi product suite. Through this collaboration, Bella integrated advanced AI technologies into its products, further enhancing user value and expanding market influence.

From the beginning, Bella's vision has been to liberate DeFi from the circles of elite geeks and developers and make it accessible to a broader audience. To achieve this, Bella focuses on lowering participation barriers and improving platform usability. By optimizing user experience and offering low-fee DeFi services, it aims to attract everyday users. Its goal is to become the "BlackRock" of the crypto world, continuously innovating in liquidity mining, yield aggregation, and simplifying user experience. Related reading: "Aspiring to Be BlackRock, How Will Bella Drive the Leap in DeFi User Penetration?"

This rebranding and the launch of AI products align perfectly with Bella's mission to further popularize DeFi, enabling more people to easily participate and benefit from the opportunities decentralized finance offers. This not only continues its original vision but also actively promotes the future development of the DeFi ecosystem.

Four Major Product Lines

With the addition of AI products, Bella Protocol now has four main product lines:

The latest flagship AI product—Bella Signal Bot—is an AI-driven trading assistant that provides long, short, and closing signals based on AI models. Integrated directly into Telegram, traders can seamlessly receive alerts for selected token pairs to make informed trading decisions.

One of Bella's "traditional" core businesses is Bella LP Farm, a yield protocol on zkSync Era, Mantle Network, and Manta Pacific. By staking LP tokens, users can earn optimized liquidity rewards.

Another key product in Bella's "traditional" lineup is Bella Flex Savings V2, an efficient smart liquidity pool that automatically compounds returns and offers low-fee wealth management. It has been running on Ethereum since February 2021, with a peak TVL exceeding $40 million.

Additionally, Bella Protocol has introduced a unique product for developers and quantitative strategists—Tuner, a programmable Uniswap V3 simulator. It allows users to backtest and optimize their quantitative strategies based on trading data, processing arbitrary or historical data without relying on EVM while fully retaining Uniswap V3 smart contract design and implementation details.

Five Trading Styles

The highlight of Bella Protocol's rebranding is the trading signal bot—Bella Signal Bot. Let's delve deeper into this new product.

In simple terms, Bella Signal Bot continuously monitors market data, analyzes trends, and generates precise "long" and "short" signals for selected perpetual token pairs.

What's special is that Bella Signal Bot is powered by five AI models, resulting in five distinct trading styles: KnightML, ViperAI, AI Directional Risk, AI MeanRev, and OptimaShort. Here's an introduction to these five AI models:

For more details on these five models, refer to Bella Protocol's official documentation. Below is the author's interpretation after testing, presented in simpler terms for readers:

KnightML

KnightML's style is like "Zhao Yun charging in and out seven times," flexible and adaptable (the term "Knight" also means "warrior"). This trading style offers adjustable trading frequency and risk exposure, adapting to different market conditions based on trader preferences. Whether going long or short, KnightML adjusts signals according to your needs, telling users when to "attack" and when to "defend." It suits traders who prefer flexible adjustments based on market conditions.

ViperAI

Compared to KnightML, ViperAI feels more like "Jia Xu, the top strategist of the Three Kingdoms" ("Viper" also means "venomous snake"). This trading style is based on deep learning models, enabling neutral operations in both bullish and bearish markets. Regardless of market trends, it finds opportunities. Users receive "long," "short," or "close" signals, along with a 2% stop-loss protection to ensure controlled risk. This strategy is ideal for traders seeking stable returns in volatile markets.

AI Directional Risk

AI Directional Risk is like "Zhuge Liang, who follows the trend," adept at grasping the big picture and capturing major trends. This trading style divides the market into two primary modes, helping traders decide when to follow trends and increase positions. It suits trend-following, right-side traders.

AI MeanRev

AI MeanRev's trading style resembles "Huang Zhong, who hits targets with precision," excelling at capturing short-term market fluctuations. This style performs well in oscillating and range-bound markets, identifying local highs and lows. AI MeanRev's average holding period is about one day, making it ideal for traders looking to profit quickly from short-term volatility.

OptimaShort

The final trading style, OptimaShort, is like "Cao Cao in a bear market," skilled at finding opportunities in adversity. Designed for bear markets, this style is optimized from ViperAI's core technology to detect downward signals swiftly. When the market enters a downtrend, OptimaShort issues "short" signals to help traders profit from declines. It also includes 2% stop-loss protection to safeguard traders during extreme volatility. It's perfect for traders aiming to maximize gains in bear markets, much like Cao Cao finding breakthroughs in adversity.

A Step-by-Step Guide to Using Bella Signal Bot

As a trading signal bot, Bella Signal Bot is used on Telegram. Ensure that Telegram notifications are enabled in your phone settings to receive timely alerts on market changes.

1. Access Bella Signal Bot

From Telegram, open Bella Signal Bot to see its features and the currently tradable token pairs (detailed later).

2. Select Token Pairs

In the main menu, click "Subscribe" or type "/subscribe" to choose the perpetual token pairs you want to monitor.

After selecting a pair, choose a trading style. Descriptions of these styles appear, or you can refer to the "Five Trading Styles of Bella Signal Bot" section above to find the one that suits you.

Once you've selected a style, a confirmation message appears.

3. View Subscribed Token Pairs

To see all subscribed token pairs, return to the main menu and click "Show Subscribed Pairs" or type "/show_subscribed."

4. Unsubscribe from Token Pairs

To unsubscribe from a specific pair, click "Unsubscribe" in the main menu or type "/unsubscribe." In the unsubscribe menu, select the pair to cancel. After confirmation, you'll receive a notification.

To unsubscribe from all pairs, click "Unsubscribe All" or type "/unsubscribe_all."

For those who want more after trying Bella Signal Bot, look forward to Bella's upcoming product: a large language model (LLM) Research Bot launching in early October. This tool will provide deeper market insights, helping users analyze tokens, trends, and market sentiment more precisely. The author is particularly excited about the potential synergy between these two products.