Automated capital refers to digital assets managed and deployed through autonomous systems. This involves financial resources that are programmatically allocated and rebalanced by algorithms, often within decentralized finance protocols. These systems execute strategies without direct human intervention, responding to market conditions or pre-set parameters. The objective is to optimize returns or liquidity provision in digital asset markets.
Context
The increasing prominence of automated capital is a significant trend in digital economics, particularly with the rise of decentralized autonomous organizations and algorithmic trading bots. News often highlights its efficiency in liquidity pools and yield farming, alongside discussions concerning the systemic risks associated with highly automated financial operations.
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