The new feature implemented on the Arbitrum network is an artificial intelligence-supported prediction market. Thanks to this market, PancakeSwap users will now be able to more consciously predict Ethereum (ETH) price movements.

So how exactly does this prediction market work? PancakeSwap benefits from Allora’s advanced machine learning technology by collaborating with Allora Network, a name specialized in this field. Allora’s AI models are known for producing price predictions with high reliability by analyzing historical data for over 400 million assets. PancakeSwap users will be able to predict ETH price movements on the Arbitrum network by taking advantage of these artificial intelligence models.

PancakeSwap product manager Chef Gyoza explains the decision to collaborate with Allora: “Over the last three years, the models built by the Allora Labs team have effectively produced price predictions for more than 400 million assets with 95-99% reliability for the most accurate predictions.”

The reliability rate mentioned by Gyoza is very important for investors. Because artificial intelligence models work to support users’ trading decisions. Users can follow or counter the AI’s predictions. At this point, it is stated that the past performance of artificial intelligence also plays an important role.

Gyoza states that artificial intelligence has an accuracy rate of close to 65% in tests. Therefore, users will be able to decide for themselves when they should take into account the predictions of artificial intelligence and when they should trust their own analysis.

PancakeSwap also takes measures to ensure the reliability of this prediction market. Gyoza states that all tour history, price flow history and artificial intelligence prediction history can be followed by users. Additionally, all results are processed on-chain through PancakeSwap’s prediction v2 contract. In this way, transparency and trust are ensured.

So, what impact will the artificial intelligence-supported prediction market have on the PancakeSwap platform? Gyoza takes a cautious approach on this issue. Because the prediction market, which is still a new product, is not expected to significantly affect the liquidity and volatility on the platform at the moment. However, Gyoza states that the collaboration with Allora can expand to many more areas in the future. PancakeSwap predicts that artificial intelligence-supported predictions can be offered in many different markets, both on-chain and off-chain.

At this point, another important innovation on PancakeSwap’s agenda is CupcakeHop. Developed by Bril Finance, CupcakeHop is defined as an artificial intelligence-supported portfolio management tool. CupcakeHop, which is expected to be launched in August, will offer investors a wider range of investment strategies and provide real-time risk management.

PancakeSwap’s investments in artificial intelligence technology are considered an important step in the cryptocurrency market. PancakeSwap aims to enrich investors’ experience with innovations such as both a prediction market and an artificial intelligence-supported portfolio management tool. How these innovations will shape the future of the cryptocurrency market is an issue that will be followed closely in the coming period.