HALO AI Protocol

A DeFi protocol on BNB Chain featuring a vault where users deposit USDT to earn yields from an AI-powered arbitrage spread capture bot. Providing liquidity on prediction markets by detecting mispricings and capturing bid-ask spreads.

TL;DR

The Arbitrage Opportunity

Binary prediction markets settle to exactly one of two outcomes. In an efficient market:

However, due to market maker spreads and liquidity fragmentation, we frequently observe:

When this condition holds, purchasing both legs guarantees profit at settlement:

Overview

HALO AI is a decentralized finance (DeFi) protocol that enables passive yield generation through intelligent market making in prediction markets.

Core Product: AI-Powered Vault

• Users deposit USDT into the BNB Chain vault
• In return, they receive vHALO (vault share tokens) representing proportional ownership in the liquidity pool
• The protocol deploys pooled funds via an automated AI bot that acts as a market maker on Opinion and Polymarket
• The bot detects mispricings using advanced AI, deep learning, and machine learning
• Places optimized buy/sell orders and captures spreads on matched trades
• Gross profits from spread capture are subject to a 20% performance fee
• Net profits automatically compound in the pool, increasing the value of vHALO shares

This allows users to earn passive income without active trading or technical expertise, while the AI maintains balanced inventory and minimizes risks.

Key Features

AI-Driven Spread Capture

Ensemble models (XGBoost, LSTM, PPO, LLM) analyze 45 features to discover fair value:

• 25 technical indicators
• 4 sentiment signals
• 8 funding rates
• 8 order book depth metrics

Dynamic Optimization

Real-time spread adjustment based on volatility, liquidity, and market conditions via:

• Kelly Criterion for optimal position sizing
• Avellaneda-Stoikov model for market making

Focus Markets

Primarily Opinion and Polymarket, enhancing efficiency in prediction markets.