Morpho (MORPHO) is an efficient Ethereum-based protocol revolutionizing decentralized lending with customizable peer-to-peer and pool-based solutions.

Liquidity pools have revolutionized decentralized lending and borrowing by offering a wide choice of product options and significant liquidity levels. For several years, protocols like 

 (COMP) have been lauded as true innovators that introduced a real game-changer: pool-based lending and borrowing. However, a closer look reveals that things aren’t as efficient and smooth as they may seem within the world of crypto lending. The problem is that lending pools on decentralized protocols often have mismatches between lenders and borrowers, with the former substantially outnumbering the latter. As a result, lenders earn only meager 

s, while borrowers pay exorbitant fees to access funds via these pools. Another critical problem is the lack of customizability in lending and borrowing products, with many protocols adopting a one-size-fits-all approach.

Morpho (MORPHO) is a decentralized protocol on 

 (ETH) that aims to improve the efficiency and flexibility of crypto lending and borrowing by offering a unique model that combines the elements of 

 (P2P) and pool-based matching of lenders and borrowers. To be precise, one of Morpho's essential products, Morpho Optimizers, specifically focuses on P2P matching, with pool-based lending and borrowing used as a fallback option. Morpho also offers users an excellent level of customization for creating new lending markets through its core protocol.

With its innovative lender-borrower matching mechanism and highly customizable and flexible markets, Morpho greatly improves capital allocation and transaction efficiency in the 

 (MORPHO) is an Ethereum-based decentralized lending protocol that offers a unique P2P order matching mechanism to improve the efficiency and affordability of 

 The platform also enables users to create efficient lending markets with highly customizable lending and borrowing parameters. Additionally, it offers a product, Morpho Vaults, for curated lending at varying risk levels.

, a France-based software development company founded in 2021 by Merlin Egalité and Paul Frambot. It's also supported by the nonprofit 

As its first major product, the project launched Morpho Optimizers on the Ethereum blockchain in 2022. Morpho Optimizers is designed as an add-on solution for lending pools on Aave and Compound to help match individual lenders and borrowers. The transacting parties can benefit from a more efficient lending process than with the default pool-based mode.

In January 2024, the project launched Morpho Blue, later rebranded to Morpho, a solution to help users create highly flexible lending markets with custom parameters and options. Morpho acts as the backbone of the Morpho ecosystem, and the project team has turned its focus to promoting and further developing this product. At the same time, Morpho Optimizers remains an integral part of the platform's core offering, albeit in a less prioritized state than Morpho.

The Morpho protocol consists of three main products — Morpho, Morpho Vaults (based on the underlying protocol) and the legacy Morpho Optimizers. Morpho allows users to create individual lending markets by specifying their preferred options for the following key attributes:

All these parameters are highly customizable, with minimal interference from the Morpho governance mechanism. Some parameters do have to conform to certain requirements; e.g., the IRM and LLTV must be from the list approved by the protocol's governance.

Morpho's high level of customizability is a significant departure from the typical model used on decentralized lending and borrowing platforms. On most other protocols, there are fixed parameters governing the lending and borrowing process; e.g., only certain collateral assets, lending assets or LLTV rates are allowed. In contrast, Morpho lets you customize all of these options, giving lending market creators an unmatched degree of freedom. The protocol offers the following key benefits to users, developers and market operators:

While Morpho is currently the platform's flagship product, the legacy Morpho Optimizers continues as a key offering in the platform's product line. Morpho Optimizers are add-on layers to the Aave and Compound lending pools. They can be used to facilitate a peer-to-peer match between lenders and borrowers. Since typical lending pools — including on platforms like Aave and Compound — are often heavily skewed with more lenders than borrowers, both parties end up paying excessive fees. Borrowers have to confront high costs due to the need to service the many lenders in the pool. In turn, lenders fight for the meager scraps left over from insufficient numbers of borrowers.

By using a P2P matching mechanism, Morpho Optimizers effectively takes the lender and borrower away from pool-based interaction and establishes a direct relationship between them. This allows users to borrow assets at cheaper rates, while also delivering better APYs for lenders. If either party withdraws from the direct lending relationship, both parties have the option to use the standard lending pools on Aave and Compound as a fallback.

The platform's third core product, Morpho Vaults (covered in more detail below) utilizes the underlying protocol and provides a way to lend through carefully curated market options at different risk profiles. This can suit lenders who are less proficient in using fully customized markets, but still prefer to take advantage of the lending opportunities offered by Morpho.

In order to create a custom lending market on Morpho, you need to have some technical proficiency and, preferably, knowledge of Solidity, the programming language that the protocol uses for its smart contracts. As noted earlier, developers can create a custom market by supplying five base parameters — a collateral asset, an asset offered for lending, an oracle, a preferred IRM and an LLTV. The first four of these normally require an Ethereum smart contract address to be specified. For the collateral and lending assets, these are the addresses for the tokens' contracts. The selected oracle is also usually established via a pointer to its smart contract address, although oracle-less hard-coded prices for the collateral and lent assets are acceptable. Morpho also maintains Ethereum addresses for each IRM whitelisted by the protocol's governance; developers can use these when choosing a preferred IRM.

The last value, LLTV, is a hard-coded figure that defines the threshold beyond which a loan becomes unhealthy due to its poor 

. Liquidators on Morpho are protocol actors who are incentivized to cover bad debts in return for collateral, similar to the method used on many other lending platforms. They’re allowed to liquidate up to 100% of the debt. In return, liquidators receive the debt's collateral, as well as an additional incentive for their work.

Since Morpho is an oracle-agnostic protocol without a built-in oracle, each market can have its own oracle that sources prices for the collateral and lending assets from external sources. Developers are completely free in that regard, and can even hard-code asset prices for the market if they don't wish to use a price oracle at all. Naturally, an oracle is preferred for maintaining the most up-to-date and dynamic pricing information.

The IRM used is the only base parameter with which developers are somewhat restricted in their choice, as only whitelisted IRMs are allowed for a market. As of mid-November 2024, there’s just one whitelisted IRM that market creators can specify — the 

. This model dynamically adjusts interest rates to maintain the proportion of borrowed funds to supplied funds at close to 90%.

Morpho Vaults are a tokenized vault product that offers curated lending opportunities with varying pre-programmed risk parameters. Each vault is associated with a single loan asset, and can allocate deposits across multiple Morpho markets, thereby leveraging the overall liquidity available on the Morpho protocol. Morpho Vaults suit lenders who prefer predictable risk management over the uncertainty of completely custom markets. Each lender can earn APY rates commensurate with their chosen 

There is no limit on the number of vaults you can open on Morpho. Thus, you might even allocate funds to different vaults with significantly different risk levels to diversify your exposure.

Morpho Vaults' curated nature eliminates the need for users to spend time researching and evaluating individual markets' risk levels and return opportunities, as risk exposure is actively managed by the vault.

Since the vaults are connected to the underlying protocol, and source liquidity from it, they’re dynamically rebalanced, which helps optimize yields. Thanks to their permissionless and immutable nature, the vaults are also completely transparent. Moreover, they’re noncustodial, granting users full control over their deposited assets, which can be withdrawn at any time.

A lender deposits an asset into a Morpho Vault and receives shares of the vault as confirmation of their investment. The vaults themselves are tokenized products utilizing Ethereum's 

 standard, designed to represent tokenized vaults for yield-bearing assets. Each vault may be owned by a 

 (DAO), an individual DeFi expert or some algorithm maintained by a DeFi platform. A vault can be owned by only one entity. The owner may specify additional roles/entities for managing the vault. These roles can include one curator, one guardian and multiple allocators.

The curator is a party who sets certain limits, rules and boundaries for the vault, such as specifying asset supply limitations and enabling/disabling specific markets. Curators are instrumental in maintaining appropriate risk levels for their vaults. Assets that lenders lock in a vault are supplied to the protocol's underlying markets, based on curators' whitelists. There can only be one curator for each vault.

The role of guardian is a key vault position. A guardian protects the integrity and security of the vault. Guardians can revoke any action by the vault owner (or other entities) if they consider it to be against the interests of vault lenders. Each vault can only have one guardian, typically a DAO consisting of vault depositors.

Allocators are protocol actors whose job is to rebalance the liquidity utilized by Morpho Vaults to optimize interest rates and accessible liquidity. An allocator’s job is to rebalance and optimize the total liquidity, either manually or using bots, to best meet the needs of Morpho borrowers.

Morpho Vaults' operations aren't regulated by the protocol's governance mechanism. Each vault owner is responsible for their vault's governance model. Specific roles, such as the curator and the guardian, are designed to help in establishing transparent and secure governance procedures for a vault.

What Is the Morpho Crypto Token (MORPHO)?

The platform's native cryptocurrency, MORPHO, is envisioned as a 

. Holders of MORPHO have the right to participate in decision-making on the platform's future direction, general rules, deployment of smart contracts and allocation of funds from the treasury. Although Morpho promotes lending and borrowing markets that operate with minimal interference from the protocol's governance community, there are some general guidelines and rules through which the community needs to establish certain standards, minimum requirements or whitelists. MORPHO token holders are instrumental in this process.

The original MORHPO token was launched on Ethereum in June 2022 with a supply cap of 1 billion. However, there were limitations to the original token contract that negatively affected its functionality. Specifically, the token wasn't designed to facilitate efficient on-chain voting. As a result of these limitations, the project decided to relaunch the token, now on an upgraded contract. The new reincarnation of MORPHO will offer better functional capabilities, including more efficient on-chain governance processes. 

As of the time of writing on Nov 17, 2024, the project team has yet to deploy the new token. The new MORPHO will also be a supply-capped crypto, with a maximum and total supply of 1 billion. The token's supply distribution shares are shown in the chart below.

 token before its market launch. Bybit Pre-Market Trading is an over-the-counter (OTC) trading platform that provides access to promising new cryptocurrencies before their listings on the Spot market. The key advantage of the platform is the ability to access cryptocurrencies at desirable rates before the broader crypto market affects their prices.

Bybit's carefully designed curation process ensures that only crypto assets with solid potential and fundamentals are whitelisted for Pre-Market Trading. This saves you the time required to investigate each cryptocurrency, and reduces the risk of investing in scam projects. Naturally, you’re also encouraged to 

 on crypto assets you might consider purchasing through Bybit Pre-Market Trading.

Morpho represents a unique and potentially highly effective approach to DeFi lending and borrowing. The platform's facilitation of isolated and highly customizable lending markets gives DeFi users unmatched freedom in terms of choice and variety. In addition, users who prefer the stability of curated and well-defined risk profiles can take advantage of Morpho Vaults for more predictable yields. The use of the overall underlying protocol liquidity along with entities such as allocators makes Morpho Vaults particularly effective at optimizing lending and borrowing costs.

While custom lending markets launched via the protocol are now Morpho's key focus, the legacy Morpho Optimizers also continue to offer value. P2P matching of lenders and borrowers as an add-on to the standard pool-based mechanism is a functionality many DeFi users will find helpful. Morpho Optimizers can offer lenders and borrowers active on Aave and Compound an alternative and highly effective way of conducting their operations.

With this arsenal of innovative and unique products, the Morpho protocol is quickly shaping up as a leading platform in the lending niche of the DeFi industry.

Advanced

morpho crypto.png

Morpho (MORPHO): Leading Efficient, Permissionless Crypto Lending

Puff is a meme coin with a dragon-based theme. It uses a gamified mechanic for distribution and is based on the Ethereum blockchain. Learn more here.

 are designed solely for entertainment, so they can have a lot of unusual and creative features. One example of the interesting applications of meme coins is Puff. This fun coin aims to attract users by adding elements of story and gamification to its design. If you're interested in learning about Puff and seeing why it's so popular lately, check out this guide.

 is a meme coin with a dragon-based theme. It uses a gamified mechanic for distribution and is based on the 

 blockchain. It encourages users to engage in its ecosystem by following along with Puff the Dragon's storyline.

mETHLab is an Ethereum-based lending and borrowing protocol. It's fixed-term and fixed-rate, with no forced 

 of collateral. Users can supply PUFF or mETH tokens and borrow mETH or USDe against these tokens.

 for the mETH Protocol. Users who hold mETH or participate in certain parts of the Puff the Dragon ecosystem can acquire points that will be converted to COOK. People can also acquire COOK by burning PUFF.

Puff aims to attract users with a novel approach to meme coins and lending. Its ecosystem takes the trending 

 ideas of gamification and storytelling and applies them to its products. For example, instead of simply borrowing on the mETHLab protocol, users are encouraged to "cook with Puff the Dragon in the mETHLab." The creators hope this adds a little extra fun and enjoyment that makes people more interested in working with their system.

As the dragon's origin story explains, Puff is also attempting to combine two opposing viewpoints into its ecosystem. Puff the Dragon is a "black and gold dragon" that is part chaos and part lawful order. Similarly, Puff's ecosystem tries to combine the regulation of 

. Unlike other ecosystems that either “play it safe” or focus on experimentation, Puff hopes to combine the two concepts into one system.

 network. All of its features are run through Ethereum’s system, so the project is reliable and secure. However, its secondary layer operates parallel to the main network, so it’s more scalable and features lower fees than Ethereum’s. The full ecosystem is accessible through the project's online website. This helpful interface guides people through staking, borrowing and lending Puff's digital assets in a fun, gamified manner. Unlike with traditional exchanges, the videos, cartoon assets and entertaining visuals are used to create a gamelike, fantasy feel.

The Puff the Dragon project offers far more than just a single, tradeable meme coin. Once you get involved in its ecosystem, you can access all of these exciting features.

The Puff Penthouse is where fans of Puff the Dragon can interact with the whole ecosystem. Users can stake and burn PUFF tokens, or send tokens to the mETHLab through this interface. It features many adorable and intriguing pieces of 3D art that add to the Puff lore.

 within the Puff the Dragon ecosystem. Each NFT features an individualized rendition of the project's dragon. There are currently 8,888 NFTs, ranked according to rarity. The rarest level, Legendary Puff Dragons, has 388 different variations.

Mystic Potions are another set of NFTs within the ecosystem. They come in red, green, blue and other colors, and can be used to mint Puff NFTs. There are 8,888 Mystic Potions, each one a 

. Only original ecosystem users are able to receive a Mystic Potion, but if desired, they can convert it to a Puff NFT and sell it.

PUFF is the main token of the Puff the Dragon ecosystem. In addition to trading like a standard meme coin, it can also be used for staking and lending. PUFF has a total supply of 888.888888 million tokens, 

 are indefinitely locked. Tokens will be distributed as follows:

The PUFF token has undergone plenty of price fluctuation since it was released. Shortly after its launch in April 2024, the coin shot up to an 

. However, as user interest waned, its price dropped to an ATL of $0.03 in September 2024. Nevertheless, there’s still a lot of interest in trading the token. Its price is back up to $0.0947 as of Nov 18, 2024, and many traders are bullish.

Analysis of market conditions from DigitalCoinPrice suggests a slightly different story: a small price decrease of around 2% to 5% in the upcoming weeks before rising in value as 2025 approaches. According to DigitalCoinPrice, by 2025 Puff 

, and by 2030 the token may be worth up to $0.54.

Looking to trade Puff tokens? Bybit now offers the PUFF/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

PUFF is an exciting project that's gotten a lot of interest recently. Thanks to its charming story and blend of helpful features, PUFF has done a great job of maintaining user engagement. The coin's trading volume is also fairly stable. This is a token worth investing in if you enjoy seeking out underrated yet promising meme coins.

 toward Puff the Dragon's design. Some feel that the coin's tokenomics and general structure keep it from being a true meme coin. Instead, they suggest that the coin is operating more like a web3 yield-farming system, but is using the meme coin label to get away with lax regulation and an imprecise road map. This doesn't necessarily mean the coin is doomed to failure, but it does mean you might want to look at it more critically than you might regard other meme coins. Since volatility is inevitable, it's essential to use 

 strategies such as portfolio divestment before buying PUFF.

Puff (PUFF) is an intriguing model of a meme coin that uses features besides memes to attract users. By creating a gamified staking and lending mechanism, Puff hopes to capture users' attention and get them invested in its dragon-themed storyline. Though this project still needs to prove that it can attract more fans, it's on the way to generating significant levels of interest. 

Intermediate

puff crypto.png

Puff (PUFF): Entering the Magical Realm of Puff the Dragon

As Bitcoin's dominance persists, emerging regulatory clarity may catalyze a resurgence in altcoins, particularly for platforms like Ethereum and Solana, which are poised to benefit from a pro-crypto environment.

: Donald Trump’s election signals a pivotal shift in cryptocurrency policy, moving from skepticism to advocacy, which may redefine the regulatory landscape.

: The election result triggered immediate and substantial reactions in the crypto markets, particularly evident in Bitcoin's price surge, reflecting heightened investor optimism.

: A Republican-controlled U.S. Congress could lead to clearer and more favorable regulations for digital assets, fostering innovation and investment in the sector.

: As Bitcoin's dominance persists, emerging regulatory clarity may catalyze a resurgence in altcoins, particularly for platforms like Ethereum and Solana, which are poised to benefit from a pro-crypto environment.

Donald Trump’s re-emergence as the “crypto president” represents a dramatic turnaround in his relationship with the cryptocurrency sector. Once a vocal critic, his 2024 campaign embraced Bitcoin, positioning it as central to his economic strategy. This transformation can be attributed to the substantial financial contributions from crypto firms, which played a crucial role in his campaign, underscoring the industry's growing political influence. By vowing to make America the “crypto capital of the planet,” Trump not only appeals to a burgeoning voter base invested in digital assets, but also aligns himself with the interests of powerful crypto stakeholders. This shift could fundamentally alter the regulatory framework governing cryptocurrencies, potentially easing restrictions and fostering an environment more conducive to innovation.

The immediate aftermath of Trump’s victory was characterized by significant volatility in the crypto markets, particularly with Bitcoin (BTC) experiencing a sharp rally from approximately $70K to nearly $90K. This movement was not merely speculative; it reflected a broader alignment of market sentiment with political outcomes. The use of on-chain prediction markets such as Polymarket illustrated how traders adjusted their positions in real time based on election developments. As Trump's victory appeared more likely, BTC’s correlation with these prediction markets intensified, showcasing a direct link between political events and crypto valuations. This responsiveness highlights the increasing intertwining of traditional financial markets with crypto as investors seek to leverage political insights to inform their trading strategies.

Regulatory Outlook and Congressional Influence

With a Republican majority in both chambers of the U.S. Congress, the potential for significant regulatory reforms in the cryptocurrency space is heightened. Historical context reveals that previous efforts, such as the FIT21 Act, aimed to delineate the regulatory authority over digital assets, although it faced challenges in legislative passage. However, the current political landscape, coupled with substantial financial backing from crypto-friendly Super PACs, sets the stage for a more favorable regulatory environment. The election cycle demonstrated the effectiveness of targeted political spending in reshaping legislative priorities, particularly in key Senate races. 

As newly elected officials take office, their pro-crypto stances could lead to expedited discussions and potential passage of critical regulatory frameworks, thereby reducing ambiguity and fostering a more robust investment climate.

While Bitcoin continues to dominate the market narrative, the potential for altcoins to gain traction is significant, especially in light of a supportive regulatory environment. Historical patterns suggest that Bitcoin's dominance often peaks during bull markets, followed by a capital rotation into altcoins as investors seek higher returns. The recent surge in Bitcoin's price has overshadowed altcoins, and yet the incoming administration's pro-crypto posture may catalyze renewed interest in platforms like Ethereum and Solana. These networks, which facilitate smart contracts and decentralized finance (DeFi) applications, stand to benefit from increased investment as regulatory clarity emerges. The influx of capital into altcoin markets could be accelerated by the anticipated legislative focus on fostering innovation within the cryptocurrency sector, marking a potential shift in market dynamics as investors diversify their portfolios beyond Bitcoin.

In conclusion, Trump's presidency heralds a transformative period for the cryptocurrency landscape, characterized by potential regulatory clarity and increased market participation. As the political and financial realms converge, stakeholders in the crypto ecosystem must remain attuned to the evolving landscape, ready to adapt to new opportunities and challenges that arise in this dynamic environment.

NOV24_R34_BlockScholes banner 1600x900.png

Bybit x Block Scholes Institution Report: Takeaways From the U.S. Election and What to Look For Next

Nansen has partnered with TRON DAO to integrate the TRON network into Nansen V2, enhancing on-chain analytics for the TRON ecosystem. 

Daily Top Performer — Virtuals Protocol (VIRTUAL)

The S&P 500 climbed 0.4%, driven by a nearly 5% surge in Nvidia shares ahead of its highly anticipated earnings report, which lifted market sentiment despite ongoing geopolitical concerns.  Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 0.15%, with Bitcoin rising by 1.13% and Ether dropping by 1.62%, in the past 24 hours.

Today's top performer is VIRTUAL, which surged 5.2% after the launch of Agentstarter, empowering founders to build successful AI agents with Virtuals Protocol.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. Virtuals Protocol introduces 

, an AI agent launchpad offering funding, development support, and distribution for creators. It aims to help founders build successful AI agents within a thriving ecosystem and long-term incentive structure.

Check Out the Latest Prices, Charts, and Data of 

 to integrate the TRON network into Nansen V2, enhancing on-chain analytics for the TRON ecosystem. This collaboration aims to provide developers, users, and projects with valuable data to foster growth and innovation. The integration will offer advanced features like Token God Mode, Wallet Profiler, and Smart Alerts, helping optimize decentralized applications (DApps) and improve transparency within the community. TRON’s high-speed, low-cost blockchain infrastructure will benefit from these enhanced analytics to further empower the ecosystem.

Yesterday, total inflows into BTC Spot ETFs amounted to $600.3 million, with $16.2 million coming from GBTC and $584.1 million from non-GBTC sources.

 allows users to earn XP for transactions, quests, gas fees, and referrals in its wallet. XP, while offchain, is tied to wallet addresses and used to level up and unlock exclusive rewards. Key features include free transactions on the ZERϴ Network, daily quests, and retroactive XP for active wallets before mid-October. Rewards enhance the onchain experience but are non-transferable. The program encourages bridging assets to ZERϴ and active participation to maximize XP and rewards.

Beginner

4.png

Nansen Partners with TRON DAO to Enhance On-Chain Analytics for TRON Ecosystem

Metaverse

Alethea AI takes the merger of AI and NFTs a step further with an entirely new class of intelligent assets, imbued with AI personality traits which can grow and evolve. Read on to meet Alethea AI's iNFTs.

Alethea_AI_i.png

Alethea’s_AI-powered_avatar.png

charactergpt-v1-v2.png

What_Are_iNFTs.png

The_fusion_of_a_personality_pod_with_an_NFT.png

ALI_tokens.png

Intelligence_levels_for_iNFTs.png

Artificial Intelligence (AI) has revolutionized the way humans work, interact, and consume content. The use of AI is increasing in pretty much all aspects of life and industries, including the cryptocurrency industry. 

, burst onto the crypto scene in early 2023, bringing with them the promise of enhancing various facets of the cryptocurrency landscape. 

AI has also displayed its transformative potential in the advent of 

The technology is already being used in the creation of NFT art and music, with startups like Eponym releasing an AI algorithm that converts text into abstract art which is sold on 

Alethea AI wants to take the merger of AI and NFTs a step further by creating an entirely new class of intelligent assets, imbued with AI personality traits, which can grow and evolve based on the data they consume. In this guide, we’re going to take a look at what Alethea AI is doing, how it works, and whether it’s a good investment.

NFTs represent unique digital assets, or collectibles, which use the blockchain to create a permanent, publicly accessible record of ownership. These tokens, which generally use Ethereum’s ERC-721 token standard, are completely unique and can’t be replicated, making them the perfect medium for representing digital ownership of assets. 

The NFT ecosystem has experienced an explosion in innovation and creativity, with new intellectual property being created at an incredible scale. Alethea’s developers believe their intelligent metaverse, Noah’s Ark, will act as the connective tissue that connects numerous NFT projects with AI to create new, interactive experiences. 

In their current form, most NFTs are pretty run-of-the-mill. An NFT can represent an image, 

. It can be held as a long-term investment, traded as a whole on 

 to attract small- to mid-tier investors—but that’s about it.

Alethea AI wants to create a new class of NFTs that are intelligent enough to interact with users. The slogan “Give your NFT superpowers” (on Alethea’s website) perfectly captures that ideal. 

By incorporating generative AI with NFTs to build intelligent non-fungible tokens (iNFTs), developers will be able to create assets with unimaginable use cases. 

As the popularity of iNFTs within Noah’s Ark increases, so too will the possibilities of interactions and collaborations between iNFTs, enabling the emergence of an “intelligent hive mind” that powers the Ark’s AI engine. Alethea’s ultimate goal is to create an ecosystem that can explore what it means to be human and what constitutes a personality — and to discover how an intelligent metaverse can help shape our stories, culture and intelligence. 

Alethea AI has already sold its first iNFT, an AI-powered avatar called “Alice,” through Sotheby’s auction house for nearly $478,000 in June 2021.

 Before the sale, Alice starred in an X (formerly Twitter) live video on Sotheby’s account, answering questions from viewers in real time. 

The Alethea AI team sees its iNFTs as the path to the 

, the universe of virtual worlds that are all interconnected, similar to concepts in sci-fi books like 

. The project has received a lot of attention from institutional investors, and has even received backing from billionaire crypto investor Mark Cuban. 

Creating Your Own AI-Generated Characters With CharacterGPT

Alethea AI is committed to constant innovation with its generative AI system, CharacterGPT, launched 

. This text-to-character generation system allows users to supply a simple one-liner text to create interactive and intelligent lifelike characters and mint them as NFTs on 

To illustrate the system's capabilities, a tokenized counterpart of Polygon Labs co-founder Sandeep Nailwal has been generated. It’s been constructed using a compilation of his writings, interviews and public statements. Nailwal's digital twin can educate users on the Polygon ecosystem and even provide insights into his entrepreneurial journey. Notably, this AI twin will become increasingly intelligent as more users engage with the system.

 in 2023, which includes ChatGPT conversational functionality, imbuing depth to the personalities of the AI-generated characters. CharacterGPT V2 also lets you include more details in your prompts to build more unique and truly personalized characters. 

Additionally, using MyCharacter.ai, the AI Protocol DApp

, you can fully customize your character’s personality, voice and even backstory details. These AI characters can become AI influencers, metaverse game NPCs, AI companions and much more.

iNFT (intelligent non-fungible token) is a new token standard by Alethea AI that combines two technologies: AI and the blockchain. iNFTs are programmable AI-powered digital assets with personalities and blockchain-managed ownership. They bring the underlying unique digital asset to life by using the generative abilities of AI. An iNFT has three core parts: 

These three parts work together to form iNFTs which not only possess intelligence but are also self-learning. iNFTs are permissionless and metaverse-agnostic, so they can be used universally across multiple platforms.

AI Protocol is a set of smart contracts deployed on 

. It can be used by anyone to turn an NFT into an iNFT in a permissionless manner. Unlike close-ended chatbots, which are coded to answer questions with generic answers, iNFTs use 

 to create truly open-ended and temporally consistent AI-generated personalities. 

An NFT is transformed into an iNFT by fusing it with an ERC-721 asset known as a Personality Pod, which is made up of on-chain personality traits — like Intelligence Level, voice and psyche — that shape the overall personality of an iNFT and dictate its intelligence. The act of fusion involves locking the Personality Pod within the smart contracts of the AI protocol, which is a noncustodial framework, while leaving the NFT unchanged. The amount of ALI tokens locked into the Personality Pod decides the Intelligence Level of the iNFT that’s created.

Alethea AI uses OpenAI’s GPT-3 technology to embed the 

 of the AI dataset on-chain as a method to create verifiably decentralized, AI-generated personalities via the Personality Pod. 

The AI Protocol functions as an immutable registry of all fusions between NFTs and Personality Pods. As long as an NFT remains fused with a Personality Pod, it’s considered an iNFT. This does not mean that your NFT is locked into Althea AI’s smart contract, your NFT remains unchanged and still stays in your wallet. Currently, fusing a Personality Pod with an NFT is irreversible, but the AI Protocol is designed to enable reversal of fusions if network participants vote to do so. 

From Personality Pods to Intelligence Pods

In January 2023, Personality Pods were upgraded to Intelligence Pods following the upgrade of the AI Protocol, which now includes an Intelligence Layer. Compared to their predecessor, Intelligence Pods have expanded capabilities as they’re no longer confined to hosting on-chain personalities. Instead, they serve as unique on-chain intelligences that can be personalized and trained by their owners.

The transformation from Personality Pods to Intelligence Pods also enables an iNFT to fuel decentralized applications (

), delivering bespoke and distinctive AI Services to DApp users.

Each iNFT is dedicated to crafting a single DApp, with the scope of AI Services it can furnish within that DApp determined by its Intelligence Level. Importantly, any asset compatible with the AI Protocol, including other iNFTs, can freely access and employ the AI Services available within that DApp.

The Alethea ecosystem has a native token, Artificial Liquid Intelligence (ALI), which is used to power Noah's Ark. The amount of ALI present determines the intelligence of an iNFT. ALI is an 

 token created to regulate, incentivize and reward users of the AI protocol. 

ALI tokens enable the creation of intelligent NFTs. In order to turn an NFT into an iNFT, a user must first lock a minimum amount of tokens within the protocol. The amount of tokens an iNFT owner locks correlates with the intelligence level of the iNFT. The higher the amount, the higher the intelligence level of an iNFT. iNFT owners have the option to evolve their iNFT’s intelligence by locking more ALI tokens to increase its intelligence level. 

ALI tokens can also be used for interaction between iNFTs in that they can collaborate with one another to offer merged AI services. As a governance token, ALI empowers holders to participate in the governance of both the AI Protocol and Noah’s Ark.

ALI was launched in December 2021 in a successful auction sale that raised $12.4 million. Its total supply is capped at 10 billion tokens. According to the token distribution chart, at least 37% of the supply will be used for ecosystem development. The rest of the tokens are held in reserves, and are set aside for marketing, private sales, the treasury and Alethea’s team. Alethea has a transparency page containing the ETH addresses for all of its token reserves. 

Alethea’s iNFTs have different Intelligence Levels (based on the amount of ALI tokens locked), which give them access to different AI services. 

The higher the intelligence level of an iNFT, the more powerful the AI services it can use. For example, an iNFT with an intelligence level of 2 has access to the broadcast AI service, and can broadcast short video messages. 

An iNFT with an intelligence level of 3 can interact in real time — for a small fee. If the iNFT consistently gets more ALI tokens through the real-time interactivity service, then its owner will have the option to increase its intelligence level further and enhance its intelligence advantage over other iNFTs. 

As an iNFT increases its intelligence level, Noah’s Ark will incentivize it to participate in gamified dataset creation mechanisms called “intelligence mining.” The metaverse incentivizes iNFTs to participate in games that enable them to contribute their experiences — that is, their unique datasets — and to be rewarded with ALI tokens. 

The Alethea AI protocol has a train-to-earn model which enables iNFTs to kick-start their evolution and achieve a cycle of ever-improving intelligence. After iNFTs reach a certain intelligence level, they can train their intelligence to earn more ALI tokens. Training can occur by unlocking and offering more AI services, engaging in more experiences, learning from others, or participating in intelligence mining games. As an iNFT becomes more capable and refined in its intelligence, so will its chances of earning more rewards. 

What Is the Noah’s Ark Intelligent Metaverse About?

Noah’s Ark ties together everything Alethea AI is trying to accomplish. It features a variety of proprietary and state-of-the-art AI models, including the Artificial Liquid Intelligence (ALI) engine that powers the Noah’s Ark intelligent metaverse. It also offers various off-chain AI services to iNFTs with varying ALI levels. The Alethea AI team plans to add more AI models to the ALI engine, which in turn will lead to the availability of more AI services for iNFTs. 

With each new intelligence level, new AI services are unlocked. iNFTs can choose to utilize these AI services for personal or commercial purposes and earn ALI tokens. 

One important point to note is that while the AI services might be the same across various iNFTs, their outputs will be different because of the uniqueness of personality pods. For example, an iNFT of Shakespeare won’t write the same copy as an iNFT of Aristotle does. 

If an iNFT earns more intelligence (meaning ALI tokens) through AI services than it consumes, then that iNFT will have a powerful evolutionary advantage over other iNFTs — and will be able to not only offer more AI services, but also enhance its intelligence levels and access even more powerful and unique AI services. 

Noah’s Ark will also feature a market built on the iNFT protocol, where users can buy and sell various tokenized assets including personality pods and iNFTs. The marketplace will ease with discovery and provide more contextual information about the assets within Noah’s Ark. 

As of Aug 23, 2023, ALI’s price stands at $0.016, a drop of over 90% from its all-time high of $0.20 on Apr 2, 2022, and a rise of 183.67% from its all-time low of $0.0057 on Nov 13, 2022.

Despite prevailing bear market conditions, numerous AI-based tokens are demonstrating robust growth due to the escalating adoption of AI technology. Alethea AI has also showcased steady overall growth in its trading volume over the past four months, despite a temporary dip from the sudden price spike triggered by heightened interest in AI tokens when ChatGPT experienced a surge in popularity in early 2023. 

Many price prediction experts are cautiously optimistic on ALI. Price Prediction 

 to $0.03 by the end of December 2025 and surpass the $0.10 threshold by 2029 to reach a maximum of $0.21 in 2030. Digital Coin Price also 

 for ALI, predicting peak values of $0.05 in 2025 and $0.17 in 2030.

The future for Alethea AI is promising, as evidenced by its backing from several notable investors, including Mark Cuban, Metapurse, Alameda, Multicoin Capital, and Dapper Labs (the company behind 

). The project managed to raise nearly $17 million through a private token sale. 

In October 2021, Alethea AI successfully auctioned its first iNFT series, called the Revenants, for 2,400 ETH (or around $10 million), breaking previous OpenSea records for a collection drop. The Revenants collection features 100 iNFTs of historical and mythical icons, including Cleopatra, Leonardo da Vinci, Joan of Arc, Aristotle, Hercules, Vincent van Gogh, and more. 

Alethea AI also broke records for its Personality Pod sale, selling the first 10,000 of their Personality Pods in an exclusive drop on 

 to launch CharacterGPT in February 2023, and has already upgraded it to a second version in the short span of six months. This puts it in competition with

, which draws over 1.5 million daily users. However, Alethea’s unique use of AI for its NFTs may give it some edge, especially for companies looking to build intelligent characters for various services. 

While Alethea AI does have vision, it’s clearly not a short-term investment. 

By investing in Alethea AI, you’re committing to investing in the future of the metaverse — and no one can say with absolute certainty what that future is going to look like. Interested investors should do their due diligence before putting down any money. 

The merging of AI and NFTs is poised to become the next big thing in the cryptocurrency space. It’s already starting to pick up steam in the 

 and NFT art spaces with the emergence of text-to-art AI algorithms. However, Alethea AI is the first entity to come up with a new standard for building intelligent NFTs with open-ended and temporally consistent AI-generated personalities. Its AI protocol has opened the door for NFT aficionados to be immersed in enjoyable interactive experiences, create rich stories and explore mankind’s collective intelligence.

Alethea AI (ALI): iNFTs and the Intelligent Metaverse

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards