WeOwn keeps working on the Web3 solutions in partnership with DeFinity. A new milestone is the launch of the Clarity Absolute, which is the extended version of Clarity app, designed specifically for institutional investors. In this novel offering, clients can get access to artificial intelligence driven by anomaly scores to automatically detect out-of-distribution behaviors in crypto asset prices.
Thanks to the embedded collaboration with Axyon AI, a leading European FinTech with expertise in Deep Learning AI for asset management and trading firms, the technology has proven extremely valid to monitor crypto market data and generate early warnings regarding unexpected price behaviors, anomalous liquidity changes, and inconsistent transactions that could be a sign of broader volatility events on price.
Being a technology provider in the Clarity Absolute project, the WeOwn team has developed the app itself from the back- and front-end sides both, as well as notification services for clients to inform about the latest events.
Detecting out-of-distribution behaviors in digital assets prices
Let’s dive into the key new feature of the Clarity Absolute – Anomaly detection. Anomaly detection is generally used to automatically detect out-of-distribution behaviors in asset prices, which may be the result of undisclosed new information, ripple effects from correlated assets, or structural breaks in an asset’s behavior versus the broader market. Although these anomalies do not represent a directional indication regarding future price moves, they are predictive of impending volatility events and as such are powerful risk management tools.
The technology has proven extremely valid to monitor crypto market data and generate early warnings regarding:
- unexpected price behaviors,
- anomalous liquidity changes, and
- inconsistent transactions that could be a sign of broader volatility events on price.
How does it work for users
On an hourly basis, approx. 5 minutes past each hour (UTC), a new anomaly score (0-100%) is generated by deep learning AI models for each of the 12 supported crypto assets, (AAVE, ADA, BNB, BTC, DOT, ETH, LTC, MATIC, SOL, UNI, XMR, XRP). The deep learning AI models look at a combination of market data, context data, and on-chain data to detect irregular patterns.
Pic.1 The Anomaly Score Overview Page
When you click a card or one of the rows from the first section, you automatically get to the details page of the particular crypto currency:
Pic.2 The Anomaly Score Details Page
The top part shows the most current anomaly score with additional info like the open or close price plus the high and lows for the given day. The upper chart represents the price of the crypto currency for the selected time period while the smaller chart below shows the anomaly score for each day.
If you want to zoom into a specific timeframe, use the selector in the smaller anomaly score chart to move to the desired timeframe. The numbers will update automatically.
The Clarity Absolute is being currently in the beta status. If you are interested, feel free to use following link to get the access https://www.definitymarkets.com/get-started
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Please check following resources to dive deeper into the Clarity app and Clarity absolute apps:
- Clarity Absolute FAQ: https://definity.zendesk.com/hc/en-us/sections/9227371131921-Clarity-Absolute-App
- Clarity Absolute app: https://clarityabsolute.definity.network/
- Clarity FAQ: https://definity.zendesk.com/hc/en-us/sections/360006041657-Clarity-App
- Clarity app: https://clarity.definity.network/