Sirio Finance Unveils AI-Driven Lending & Borrowing Protocol on the Hedera Network

We’re excited to announce that Sirio Finance, the lending and borrowing protocol partnered with Filecoin and leveraging Machine Learning (ML) for liquidation event prevention, is launching on the Hedera network in early 2025.

Lending & Borrowing

Lending & Borrowing protocols are a cornerstone of all DeFi ecosystems. Enhancing the liquidity flow of tokens, increasing TVL, and expanding possible use cases are just a few of the opportunities they offer.

However, these opportunities come with risks such as liquidations, token manipulations, and minting attacks. Leading protocols like Aave or Compound have engaged third-party firms such as Gauntlet or Chaos Labs to develop robust risk frameworks, resulting in close-source solutions with strict rules applied to users.

Derisking with Sirio Finance

Sirio Finance is a Lending & Borrowing Protocol that is combining a robust risk framework with a ML model (a branch of AI) built on the Hedera Consensus Service (HCS) to help reduce the risk of liquidation events. This model is entirely permissionless and aims to make Sirio’s risk parameters more user-friendly by leveraging the model's activity to enhance user awareness of liquidation risks.

The Sirio model is designed to predict and prevent liquidation events in real-time. By alerting users to potential risks and suggesting preventive actions, the team aims to not just protect assets but also foster a more user-centric DeFi environment. 

Decentralizing with Filecoin

In addition to being a notable innovation in the DeFi sector, this model represents opportunity for Sirio to contribute to interoperability between Hedera and other web3 ecosystems. 

One of Sirio’s main goals is to fully decentralize the AI. This ambition has led them to establish an official partnership with Filecoin to store our datasets on their systems. The team plans to extend this partnership into the DeFi space, with significant integrations involving Sirio Finance lending & borrowing protocol, Hedera and Filecoin ecosystems. 

With these assumptions, Sirio Finance aims to become the interoperable layer of the Hedera DeFi ecosystem.

The HBAR Foundation’s Request For Proposal (RFP)

Sirio Finance is one of three teams in The HBAR Foundation’s lending and borrowing RFP that we launched earlier this year, with the mission to engage the community in decision making for the next wave of DeFi on the Hedera network. 

We’re excited to welcome the cohort of teams from this process to the network over the coming weeks and months.