In 2023-2024, the integration of AI and cryptocurrency is one of the hottest trends for the Web3 segment in terms of apps, infrastructure, tooling and so on. Today we sat down with Konstantine Morosheen, the CEO in Algoritmic Lab, to talk about the latest developments of Stalwart, a multi-product AI-powered ecosystem for cryptocurrency traders, investors and enthusiasts.

U.Today: Could you please briefly introduce your product and share some details about your team’s background?

Konstantine Morosheen: Stalwart, developed by the Algoritmic Lab team, is kind of a new wave in the cryptocurrency world. It takes the best of stablecoins and traditional assets like gold, bonds, low-volatility stocks and ETF funds. But the coolest part is how Stalwart uses artificial intelligence to manage all this wealth. The AI analyzes the market, tracks sentiments and helps maintain stability, even when the market is stormy. Plus, Stalwart has its own ecosystem with secure wallets for managing finances, online payments and even staking. Basically, it's like a next-generation cryptocurrency that is accessible to everyone. 

The development is being handled by a top blockchain team that previously worked on private blockchain technologies.

U.Today: You started working in the AI segment in 2020 well before ChatGPT triggered the “AI frenzy” in 2023. Why were you interested in commercial applications of AI?

Konstantine Morosheen: The model with a stablecoin backed by a resilient asset pool that adapts in real time to the market has been in testing for several years, with ongoing optimization whenever possible. This requires a whole team of analysts, including the use of algorithms and neural networks. However, it is only with the current level of AI development that it has become capable of replacing the part of human work that was difficult to provide for with algorithms. Language models have now become adept at this — they can accurately interpret human speech, transcribe videos and discern meanings. In other words, we didn't just come up with a way to integrate AI into our development — we knew why and how we would use it as soon as it reached the maturity we needed.

U.Today: Regarding your AI-powered sentiment checker tool: Which sources would you like to index and track?

Konstantine Morosheen: We monitor X, Telegram, popular news portals and YouTube channels. We take key words, search engine results for them, and then rank and analyze them based on audience size. We plan to track everything that influences public opinion in order to identify the sentiment that has a significant impact on the market.

U.Today: Who would you describe as the core target audience for your product and token?

Konstantine Morosheen: Our audience consists of users who face the need to diversify their portfolio and would like to spend less time managing it without increasing risks, as well as businesses that want to offer their customers the option of direct payment with cryptocurrency and face the same problem: how to protect the accepted funds from potential risks of devaluation in the event of a sudden drop in cryptocurrency value.

We start from the obvious fact — cryptocurrency already exists and continues to spread. More and more people want to use it, including using it directly as a payment instrument and for accumulation.

There are many cryptocurrencies, but stablecoins are chosen for transactions and long-term storage of the main part of the portfolio because they are minimally susceptible to market fluctuations, which is their primary function.

The question arises: Which stablecoins to choose and in what proportion? Are there 100% reliable stablecoins? Practice shows that there are not.

For example, if a regulator approaches a stablecoin issuer with a request for backing and discovers it is insufficient, a depegging and a drop in value can occur. The drop itself can happen very quickly, within a few days, although its precursors in the information space appear in advance.

How to track market signals, how to respond to them? What if I miss something important or, conversely, act on impulse? And if I am a business, and my decision on where to store liquidity affects many people, how do I make a good decision and how often do I need to review it, and who needs to be involved?

All these are questions that slow down the adoption of cryptocurrencies, and we have created a mechanism that solves this problem. 

U.Today: Stalwart will employ both a native crypto token (volatile) and a stablecoin. Why did you choose such an eccentric design?

Konstantine Morosheen: In our system, there are three main assets: the native coin of the blockchain (utility token), the stablecoin Stalwart Coin and the index coin Stalwart Index. If the stablecoin is backed by low-volatility assets, the Stalwart Index, on the contrary, is backed by volatile ones. However, these coins represent the greatest interest from investors, potential for growth and clear value for the cryptocurrency market.

We started from the market's need — there is always a demand for volatile coins in a bull phase and for stable ones in a bear phase, and we hedge ourselves as an ecosystem in both phases, caring about our user. Staying within the same ecosystem, a user can switch from one market phase to another, simply by changing the ratio of Stalwart Coin and Stalwart Index in their portfolio.

U.Today: Describe the mechanisms of your stablecoin.

Konstantine Morosheen: There is a certain backing in the form of stablecoins and other tokens, and the system regulates the share of each stablecoin in the portfolio, based on the results of AI analysis, selling and purchasing assets in the liquidity pool based on real-time analysis.

U.Today: Which main utilities will you offer to your token’s holders?

Konstantine Morosheen: Staking the utility token grants the right to reduced commissions, access to advanced analytics in the personal account and also the right to profit from transactions.

Furthermore, we have an answer to the question of how we plan to gain popularity. This is done through a native referral mechanism. Because we are based on our own blockchain, we were able to integrate the necessary business logic at the level of the blockchain infrastructure itself. We have implemented the logic of working with commissions in such a way that we have the opportunity to share part of the commission during integration.

If any user facilitates the placement of, for example, a payment module in an ecommerce project, they receive a percentage of the transactions, and this is recorded in the blockchain.

U.Today: What do you estimate as the timeline of Stalwart testnet and mainnet launch?

Konstantine Morosheen: Well, it can be tracked on our official web page. 

U.Today: Why did you decide to choose Cosmos over Ethereum, Polygon or BSC?

Konstantine Morosheen: The main idea is that the declared alternatives do not offer the ability to make Layer 0 decisions, to have your own blockchain with its own modifications necessary for business. In Ethereum, we are, in one way or another, tied to the network's product road map, and any logic we wish to implement can only be built on top of Ethereum's logic. For any smart contract, the transaction cost will depend on the number of instructions, and we have no way to influence the commission structure or redistribute it in favor of the user. Therefore, we have chosen Cosmos, which allows us to build our own blockchain.

U.Today: Share your opinion on the synergy between AI and crypto — and the role of Stalwart in this synergistic progress.

Konstantine Morosheen: The crypto world is overall very complex, requiring deep immersion and constant attention. And this complexity creates a significant barrier to the spread of Web3.

We see in AI not only a valuable mechanism for analysis but also an active communicator, capable of adapting to any user and literally taking them by the hand into the world of Web3 and then accompanying them there.

Having at its core the same mechanism that is used for market analysis, AI can communicate in "human" language and will act as an advisor within our DAO as well as a personal consultant for users in the context of portfolio management in their personal account. Some of these functions are already being tested; this requires serious product work, but we are confident that AI can help "humanize" the crypto world and make it more understandable and friendly.