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Signum Capital Newsletter
This edition of the newsletter dives into Myshell, a pioneering decentralized AI platform that connects consumers, creators, and researchers through its innovative AIpp Store, where users can develop, trade, and monetize AI applications using advanced language models and voice synthesis technology. The platform's ecosystem is powered by the $SHELL token, which enables various earning opportunities through content creation, patron activities, and community engagement, with the token's utility extending to governance, advertising, and premium feature access across the platform's growing network of over 4 million users and 60,000 core creators. We'll also share some interesting articles, portfolio updates and market highlights.
a) Building effective agents
• Building effective AI agents requires starting with simple, composable patterns like prompt chaining, routing, and parallelization rather than complex frameworks, with each pattern serving specific use cases such as customer support or code development.
• The key to success lies in starting with basic LLM implementations and only adding complexity when necessary, while ensuring clear documentation and thorough testing of tool interfaces that allow agents to interact effectively with external services.
A post for developers with advice and workflows for building effective AI agents
b) What Are AI Agent 'Swarms' The Next Chapter in AI Agent Evolution
• The article discusses how AI agents are revolutionizing the crypto space through specialized tasks like automated trading, smart contract management, portfolio management, security, and governance, with these agents now evolving into "swarms" where multiple specialized AI agents work together toward common goals.
• Notable projects in this space include Spectral Labs (building an on-chain agent economy), FXN (creating infrastructure for agent communication), and Kolin (demonstrating practical swarm implementation), though challenges remain around data quality, memory capacity, legal frameworks, and user trust.
Michael Saylor once said, "Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy." Credit where credit is due, he was somewhat close to the truth.
c) Introducing Smart Value Recapture (SVR): A Chainlink-Powered MEV Recapture Solution For DeFi
• Chainlink is introducing Smart Value Recapture (SVR), a new oracle solution that enables DeFi applications to recapture Maximal Extractable Value (MEV) from their use of Chainlink Price Feeds, with an initial focus on helping lending protocols recapture oracle-related MEV from liquidations, expecting to achieve around 40% value recapture rate.
• The system works through a dual-feed architecture leveraging Flashbots MEV-Share, with revenue split between DeFi protocols (60-65%) and Chainlink ecosystem (35-40%), and includes fallback mechanisms for security, requiring minimal integration changes for existing Chainlink Price Feed users.
Chainlink Smart Value Recapture (SVR) is a novel MEV recapture solution from Chainlink for the DeFi ecosystem.
a) Sonic Labs
• Sonic Gateway is opened, bridge selected tokens from Ethereum to Sonic mainnet
gateway.soniclabs.com
b) Artela
• Artela is introducing a blockchain-based architecture for truly autonomous AI agents that operates fully on-chain through innovations like Aspect Programming and Elastic Block Space, enabling agents to function independently without reliance on centralized servers or administrators.
• The platform addresses key challenges in AI agent autonomy by providing decentralized execution environments, confidential privacy through Trusted Execution Environments (TEE), and native integration with blockchain features, allowing agents to genuinely "Read, Write, Own" their data and assets while interacting trustlessly with other blockchain participants.
introducing-artela-fully-on-chain-ai-agents
e) Zoo Finance
• Berachain's Proof-of-Liquidity (PoL) consensus mechanism incentivizes users to provide liquidity by rewarding them with BGT tokens, creating a three-way flywheel between DeFi protocols, Validator Nodes, and Users.
• The article outlines 3 strategies for participating in this ecosystem: a basic approach using BGT Station for direct liquidity provision, an intermediate strategy using Infrared for liquid staking, and an advanced strategy combining Zoo Finance with Infrared for leveraged yield farming.
Berachain's bArtio testnet has been running for quite some time, mainnet launch could be just around the corner. With its highly anticipated Proof-of-Liquidity (PoL) consensus mechanism, what will...
d) Krystal
• Krystal has introduced a new automation fee model that charges 2% of performance fees only on profits earned, replacing their previous model which charged 0.1% of the total position value regardless of profitability.
• This user-friendly update, effective December 24th, applies to automated features like Auto Rebalance, Auto Compound, and Auto Exit across various DEXs including Uniswap and PancakeSwap, potentially reducing fees by up to 5 times and ensuring users only pay when they profit from providing liquidity.
Did you know? 
Krystal is excited to announce a significant update to our automation fee model. Gone are the days of paying automation fees based on the entire value of your position.
1. Introduction
In the rapidly evolving landscape of AI, MyShell has emerged as a groundbreaking platform that's revolutionizing how users interact with and developers monetize AI apps. As a decentralized AI consumer layer, MyShell connects consumers, creators, and open-source researchers in an ecosystem that promotes innovation, accessibility, and fair value distribution. The platform has already achieved good traction, with over 4 million registered users, more than 60,000 core creators, and 5.3 million downloads of its flagship MeloTTS product.
2. The Technology Powering MyShell's Innovation
At its core, MyShell's infra is built on cutting-edge AI models and innovative development frameworks. The platform's research team, comprising experienced AI entrepreneurs and researchers from prestigious institutions like MIT, Princeton, and Oxford, has developed proprietary AI models that achieve state-of-the-art performance while maintaining accessibility for creators. Two of the vocal members on the team includes the co-founder Ethan and Aiko who was previously doing investments at Folius Ventures.
MyShell's Large Language Model (LLM) technology stands out for its specialized training in character role-play and AI companion interactions. Unlike conventional models that focus solely on task completion, MyShell's LLM is trained on extensive data from novels, movies, anime, and TV shows, enabling more natural and engaging interactions. This unique approach allows creators to develop AI apps with distinct personalities and deeper emotional engagement, making it particularly effective for creating AI companions and interactive experiences.
One of MyShell's most impressive technological achievements lies in its voice synthesis capabilities. The platform has revolutionized the accessibility of text-to-speech (TTS) and voice cloning technologies by achieving a remarkable 99% reduction in voice synthesis costs. Where traditional voice cloning required up to 100 hours of voice samples, MyShell has streamlined the process to require just one minute of audio while maintaining high-quality, natural-sounding output. This breakthrough has democratized access to advanced voice technology, enabling creators to bring their AI applications to life with authentic vocal interactions.
3. The AIpp Store: A Revolutionary Marketplace for AI Apps
The AIpp Store represents MyShell's innovative approach to AI apps' distribution and monetization. This marketplace serves as a central hub where creators can publish, trade, and monetize their AI apps through a transparent and efficient system. The store has demonstrated significant traction, recording over $1.3 million in transactions and establishing itself as a viable platform for AI apps monetization.
At the heart of the AIpp Store is its sophisticated bonding curve mechanism (think AMMs and FriendTech), which automatically adjusts token prices based on supply and demand. This system creates a fair and transparent pricing environment while incentivizing early discovery and investment in promising applications. When users interact with or invest in an application, the price adjusts accordingly, rewarding early adopters and creating a dynamic marketplace that reflects real user value.
The store's infrastructure supports seamless transactions through one-click trading and implements a 1% transaction fee structure that ultimately benefits creators. This approach has proven successful in fostering a sustainable ecosystem where creators can earn meaningful revenue from their innovations. The platform offers multiple development modes, including classic, dev, and no-code options, making it accessible to creators of varying technical expertise.
Furthermore, the AIpp Store integrates a flexible widget system that allows creators to enhance their applications with various functionalities. Creators can leverage multiple AI models and APIs to develop diverse applications, from virtual companions to productivity tools and creative assistants. This flexibility has contributed to the platform's growing popularity among both developers and users.
4. Earning $SHELL
The $SHELL token serves as the backbone of MyShell's ecosystem, with a total supply capped at 1 billion tokens. The token is designed to facilitate value exchange and reward participation across the platform through multiple earning mechanisms and utilities.
Content creators form the foundation of the earning ecosystem. By developing and publishing AI apps using a Creator Pass, they can generate revenue through multiple streams. These include direct usage fees from their apps, investment returns from the AIpp Store, and a share of transaction fees generated by their applications' trading activity. The platform's creator-centric approach ensures that innovators are fairly compensated for their contributions (creator content economy flywheel).
Patron activities represent another significant earning opportunity within the MyShell ecosystem. Users who hold Patron Badges can earn $SHELL tokens when the apps they support are used by others. This system encourages early identification and support of promising apps while creating a sustainable model for long-term ecosystem growth. Patrons play a crucial role in discovering and promoting quality applications, contributing to the platform's overall health.
Community engagement represents the third major avenue for earning $SHELL tokens. Users can participate in platform events, contribute to open-source AI model development, or provide specialized features and data to the ecosystem. This diverse range of earning opportunities ensures that participants at all levels can benefit from their contributions to the platform's growth.
The utility of $SHELL extends beyond simple earnings. Token holders can use $SHELL for membership access to premium features, advertising their applications on the platform, and participating in governance decisions that shape the platform's future. The token also serves as the primary medium for transactions within the ecosystem and covers platform operational costs through service fees.
MyShell has implemented a carefully planned token distribution strategy to ensure long-term sustainability. The largest portion, 40%, is allocated to community incentives, demonstrating the platform's commitment to user-driven growth. Private sale participants receive 29%, while 12% is reserved for the team. The remaining portions are distributed across advisors, partnerships, and ecosystem development initiatives.
5. Future Growth and Concluding Thoughts
MyShell's impressive growth metrics on both BNB Chain and opBNB demonstrate the platform's strong position and it is hopeful they can replicate the traction on other ecosystems as well. The platform continues to evolve, with ongoing developments in technological capabilities, creator tools, and economic models. As the AI agent narrative matures, MyShell is well-positioned to maintain its role as a leading platform for AI application development and deployment.
The platform's focus on lowering technical barriers while maintaining high-quality outputs has created an environment where innovation can flourish. By combining innovative AI capabilities with an accessible development platform and robust economic model, MyShell is creating an ecosystem where value is fairly distributed among all participants.
As we look to the future, MyShell's commitment to decentralization, creator empowerment, and technological advancement suggests continued growth and innovation. The platform's ability to adapt to changing market needs while maintaining its core values of accessibility and fair value distribution positions it as a key player in shaping the future of AI application development and deployment. Signum Capital is proud to support them on this journey.
*Disclosure: Signum Capital’s holds a position in the company mentioned above and the information provided on this newsletter is for general informational purposes only and does not constitute professional nor investment advice.
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