DeFi Models for Asset Management

Lumia L2 is at the forefront of integrating cutting-edge technologies to revolutionize the DeFi space. One of the key innovations we are introducing is the use of Zero-Knowledge Machine Learning (zkML) for asset management. By leveraging the power of off-chain AI models and bringing the data on-chain via zkML, we aim to provide our users with the best yield opportunities across the web3 ecosystem.

Understanding zkML

Zero-Knowledge Machine Learning (zkML) is a groundbreaking approach that combines the principles of machine learning with zero-knowledge proofs (ZKPs). In the context of asset management, zkML allows us to train AI models on sensitive financial data without compromising privacy or security.

The core idea behind zkML is to enable the generation of outputs or predictions from an AI model without revealing the sensitive training data itself. This is achieved through the use of ZKPs, specifically zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge).

zk-SNARKs provide a way to prove the integrity of the output generated by an AI model without disclosing the underlying model parameters or the training data. This ensures that the AI model's predictions are accurate and trustworthy, while maintaining the privacy and confidentiality of the data used to train the model.

Building Off-Chain AI Models for Yield Optimization

At Lumia L2, we are developing sophisticated off-chain AI models that leverage the vast amount of data available across the web3 ecosystem. These models are designed to analyze various yield opportunities, both within Lumia L2 and on other platforms integrated into Lumia Steam.

Our AI models employ advanced machine learning techniques, such as deep learning and reinforcement learning, to identify the most promising yield opportunities. By considering factors such as market trends, historical performance, liquidity, and risk profiles, these models can provide data-driven insights and recommendations to optimize users' returns.

The off-chain nature of these AI models allows us to process large volumes of data efficiently and continuously update the models based on the latest market conditions. This ensures that the yield recommendations provided to our users are always up-to-date and reflect the current state of the web3 ecosystem.

Bringing Data On-Chain via zkML

While the AI models operate off-chain, we utilize zkML to bring the relevant data and predictions on-chain in a secure and privacy-preserving manner. This is achieved through the use of zkML circuits built with Succint, a powerful zkML framework.

Succint enables us to convert the off-chain AI models into arithmetic circuits that can be executed on-chain. These circuits take the input data, perform the necessary computations, and generate zero-knowledge proofs that verify the integrity of the output without revealing the underlying data or model parameters.

The zkML circuits are designed to be highly efficient and scalable, allowing us to process large amounts of data and generate proofs quickly. This ensures that the yield recommendations provided to our users are not only accurate but also delivered in a timely manner.

Custom EigenLayer AVS for Verification

To further enhance the security and trust in our zkML asset management system, we leverage a custom EigenLayer AVS (Actively Validated Services) for verification. EigenLayer is a cutting-edge framework that enables the creation of decentralized and trustless verification services.

Our custom EigenLayer AVS is specifically designed to verify the zero-knowledge proofs generated by the zkML circuits. It acts as an independent and decentralized verifier, ensuring that the proofs are valid and the output generated by the AI models is accurate.

The EigenLayer AVS operates on a decentralized network of nodes, each of which independently verifies the zkML proofs. This distributed verification process provides an additional layer of security and trust, as it eliminates the need for a single centralized verifier.

Technical Breakdown

Here's a high-level technical breakdown of how zkML is integrated into Lumia L2 for asset management:

  1. Off-Chain AI Models: We develop and train advanced AI models using state-of-the-art machine learning frameworks such as TensorFlow or PyTorch. These models are designed to analyze yield opportunities across the web3 ecosystem and provide data-driven recommendations.

  2. Data Preprocessing: The input data for the AI models is preprocessed and normalized to ensure compatibility with the zkML circuits. This may involve techniques such as feature scaling, one-hot encoding, and data augmentation.

  3. zkML Circuit Compilation: Using the Succint framework, we compile the off-chain AI models into zkML circuits. This process involves converting the model's computational graph into an arithmetic circuit representation that can be executed on-chain.

  4. Proof Generation: The zkML circuits are executed off-chain using the preprocessed input data. During this process, the circuits generate zero-knowledge proofs that attest to the integrity of the output without revealing the underlying data or model parameters.

  5. On-Chain Verification: The generated zkML proofs, along with the necessary public inputs, are submitted to the custom EigenLayer AVS for verification. The AVS nodes independently verify the proofs and reach a consensus on the validity of the output.

  6. Yield Recommendations: Once the zkML proofs are verified, the yield recommendations generated by the AI models are made available to users on Lumia L2. These recommendations are presented in a user-friendly interface, allowing users to make informed decisions about their investments.

  7. Continuous Model Updates: The off-chain AI models are periodically retrained and updated based on the latest market data and user feedback. This ensures that the yield recommendations remain accurate and relevant over time.


By integrating zkML into our asset management system, Lumia L2 is revolutionizing the way users interact with DeFi platforms. Our off-chain AI models, powered by advanced machine learning techniques, provide data-driven yield recommendations that help users maximize their returns.

Through the use of zkML circuits built with Succint and verified by our custom EigenLayer AVS, we bring the power of AI on-chain in a secure, privacy-preserving, and trustless manner. This ensures that users can benefit from the insights generated by our AI models without compromising the confidentiality of their data.

As we continue to push the boundaries of zkML and AI in the DeFi space, Lumia L2 is well-positioned to become the go-to platform for users seeking the best yield opportunities across the web3 ecosystem. By combining cutting-edge technology with a user-centric approach, we are paving the way for a new era of intelligent and secure asset management in the decentralized world.

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