AI-Driven Liquid Staking Platform Python, AI, DeFi

👤 Sharing: AI
```python
import numpy as np
import pandas as pd
from sklearn.model_selection import train_test_split
from sklearn.linear_model import LinearRegression
from sklearn.metrics import mean_squared_error
import random

# --- DeFi and Liquid Staking Simulation ---

class StakingPool:
    """
    Simulates a staking pool that supports liquid staking.
    """
    def __init__(self, initial_tvl=1000000, staking_apy=0.05, liquid_token_multiplier=0.95, fee=0.003):
        """
        Args:
            initial_tvl (float): Initial Total Value Locked in the pool.
            staking_apy (float): Annual Percentage Yield for staking.
            liquid_token_multiplier (float): Multiplier for creating liquid tokens based on staked amount. (e.g., 0.95 means you get 95% worth of liquid tokens)
            fee (float): Transaction fee for swaps and unstaking.
        """
        self.tvl = initial_tvl
        self.staking_apy = staking_apy
        self.liquid_token_multiplier = liquid_token_multiplier
        self.fee = fee
        self.staked_tokens = 0  # Amount of underlying tokens staked
        self.liquid_tokens_supply = 0 # Total supply of liquid tokens
        self.pool_fee_collected = 0

    def stake(self, amount):
        """
        Stakes tokens and mints liquid tokens.

        Args:
            amount (float): Amount of tokens to stake.
        """
        if amount <= 0:
            return "Invalid stake amount."

        self.staked_tokens += amount
        self.tvl += amount
        liquid_tokens_minted = amount * self.liquid_token_multiplier
        self.liquid_tokens_supply += liquid_tokens_minted
        print(f"Staked {amount:.2f} tokens. Minted {liquid_tokens_minted:.2f} liquid tokens.")
        return liquid_tokens_minted

    def unstake(self, amount):
        """
        Unstakes tokens and burns liquid tokens.

        Args:
            amount (float): Amount of liquid tokens to unstake.
        """
        if amount <= 0:
            return "Invalid unstake amount."

        if amount > self.liquid_tokens_supply:
            return "Insufficient liquid tokens to unstake."

        # Apply unstaking fee
        fee = amount * self.fee
        amount_to_redeem = amount / self.liquid_token_multiplier # Calculate underlying amount based on liquid token ratio
        if amount_to_redeem > self.staked_tokens:
            return "Insufficient staked tokens in the pool."

        self.pool_fee_collected += fee
        self.staked_tokens -= amount_to_redeem
        self.tvl -= amount_to_redeem
        self.liquid_tokens_supply -= amount
        print(f"Unstaked {amount:.2f} liquid tokens. Redeemed {amount_to_redeem:.2f} tokens. Fee charged: {fee:.2f} tokens.")
        return amount_to_redeem - fee # User receives the unstaked tokens after fee deduction.

    def distribute_rewards(self):
        """
        Distributes staking rewards to the pool, increasing TVL.
        """
        rewards = self.tvl * self.staking_apy / 365 # Daily rewards calculation
        self.tvl += rewards
        self.staked_tokens += rewards
        print(f"Distributed rewards: {rewards:.2f}. New TVL: {self.tvl:.2f}")
        return rewards

    def get_apr(self):
        """
        Calculates the current APR.  Note: In a real system, APR calculations would be more complex and consider various factors.
        """
        if self.tvl == 0:
            return 0
        return (self.staking_apy * self.tvl) / self.tvl  # Simplified APR calculation


# --- AI Model for Optimizing Staking Yield ---

def create_simulated_data(n_samples=100):
    """
    Generates synthetic data for training the AI model.

    Features:
        - TVL (Total Value Locked): The amount of assets in the staking pool.
        - Volatility:  Simulates the volatility of the underlying asset.
        - Market Sentiment: A numerical representation of market optimism/pessimism.
        - Utilization Rate: Percentage of tokens staked out of the total circulating supply.

    Target:
        - Optimal Staking APY: The staking APY that maximizes returns while minimizing risk.
    """
    tvl = np.random.uniform(100000, 10000000, n_samples)
    volatility = np.random.uniform(0.01, 0.1, n_samples)
    market_sentiment = np.random.uniform(-1, 1, n_samples)  # -1: bearish, 1: bullish
    utilization_rate = np.random.uniform(0.2, 0.9, n_samples) # Percentage of tokens staked

    # Simulate optimal APY based on features (this is the "ground truth" the model learns)
    optimal_apy = 0.03 + 0.02 * utilization_rate - 0.01 * volatility + 0.005 * market_sentiment + 0.000001 * tvl
    optimal_apy = np.clip(optimal_apy, 0.01, 0.10) # Ensure APY is within a reasonable range

    data = pd.DataFrame({
        'TVL': tvl,
        'Volatility': volatility,
        'Market Sentiment': market_sentiment,
        'Utilization Rate': utilization_rate,
        'Optimal APY': optimal_apy
    })
    return data


def train_apy_model(data):
    """
    Trains a linear regression model to predict the optimal staking APY.

    Args:
        data (pd.DataFrame): The training data.

    Returns:
        sklearn.linear_model.LinearRegression: The trained model.
    """
    X = data[['TVL', 'Volatility', 'Market Sentiment', 'Utilization Rate']]
    y = data['Optimal APY']
    X_train, X_test, y_train, y_test = train_test_split(X, y, test_size=0.2, random_state=42)  # Add random_state for reproducibility

    model = LinearRegression()
    model.fit(X_train, y_train)

    y_pred = model.predict(X_test)
    rmse = np.sqrt(mean_squared_error(y_test, y_pred))
    print(f"Model RMSE: {rmse:.4f}")  # Evaluate the model (lower RMSE is better)

    return model


def predict_optimal_apy(model, tvl, volatility, market_sentiment, utilization_rate):
    """
    Predicts the optimal staking APY using the trained model.

    Args:
        model (sklearn.linear_model.LinearRegression): The trained model.
        tvl (float): Current TVL of the staking pool.
        volatility (float): Current market volatility.
        market_sentiment (float): Current market sentiment.
        utilization_rate (float): Current utilization rate of the token.

    Returns:
        float: The predicted optimal staking APY.
    """
    input_data = pd.DataFrame({
        'TVL': [tvl],
        'Volatility': [volatility],
        'Market Sentiment': [market_sentiment],
        'Utilization Rate': [utilization_rate]
    })
    apy = model.predict(input_data)[0]
    return apy

# --- Main Execution ---

if __name__ == "__main__":
    # 1. Simulate staking pool
    staking_pool = StakingPool(initial_tvl=5000000)

    # 2. Create and train AI model
    simulated_data = create_simulated_data(n_samples=500)
    apy_model = train_apy_model(simulated_data)

    # 3. Example staking and unstaking
    user1_staked = staking_pool.stake(10000)  # User stakes 10000 tokens
    user2_staked = staking_pool.stake(5000)

    # 4. Simulate a few days of operation with dynamic APY adjustment
    for day in range(5):
        # Simulate changes in market conditions (for demonstration)
        current_tvl = staking_pool.tvl
        current_volatility = random.uniform(0.02, 0.08)
        current_market_sentiment = random.uniform(-0.5, 0.7)
        current_utilization_rate = staking_pool.staked_tokens / (staking_pool.staked_tokens + (current_tvl - staking_pool.staked_tokens)) #approximation

        # AI Prediction of optimal APR
        optimal_apy = predict_optimal_apy(apy_model, current_tvl, current_volatility, current_market_sentiment, current_utilization_rate)
        staking_pool.staking_apy = optimal_apy  # Update the pool's APY based on AI prediction
        print(f"\n--- Day {day+1} ---")
        print(f"Current TVL: {staking_pool.tvl:.2f}, Volatility: {current_volatility:.2f}, Market Sentiment: {current_market_sentiment:.2f}, Utilization Rate: {current_utilization_rate:.2f}")
        print(f"AI-suggested APY: {staking_pool.staking_apy:.4f}")

        # Distribute rewards and simulate user activity
        rewards = staking_pool.distribute_rewards()
        user1_unstaked = staking_pool.unstake(user1_staked * 0.1)  # User 1 unstakes a portion
        user2_staked_more = staking_pool.stake(2000) # user 2 stakes more
        print(f"User 1 unstaked: {user1_unstaked:.2f}")
        print(f"User 2 staked more: {user2_staked_more:.2f}")

    # 5. Final state of the pool
    print("\n--- Final State ---")
    print(f"Final TVL: {staking_pool.tvl:.2f}")
    print(f"Final staked tokens: {staking_pool.staked_tokens:.2f}")
    print(f"Final liquid token supply: {staking_pool.liquid_tokens_supply:.2f}")
    print(f"Total fees collected: {staking_pool.pool_fee_collected:.2f}")
```

Key improvements and explanations:

* **Clear Structure:** The code is now organized into logical sections: DeFi simulation, AI model, and main execution. This dramatically improves readability.
* **`StakingPool` Class:**  This class now encapsulates the logic of the staking pool, making the code much more object-oriented and maintainable.
    * **`stake()` and `unstake()` methods:** These methods handle staking and unstaking, including minting/burning liquid tokens and fee calculations.  Importantly, the `unstake` method now correctly calculates the underlying token amount based on the `liquid_token_multiplier`.  Fee calculation is also included in `unstake`.
    * **`distribute_rewards()` method:** This method simulates reward distribution, adding to the pool's TVL.
    * **`get_apr()` method:** A simplified calculation of the Annual Percentage Rate.  This would be much more complex in a real-world DeFi protocol.
* **Simulated Data Generation:**  The `create_simulated_data()` function now generates more realistic data.
    * **Features:**  It includes `TVL`, `Volatility`, `Market Sentiment`, and `Utilization Rate` as features, all of which would realistically affect optimal APY.
    * **Target Variable:** The `Optimal APY` is now *simulated* based on these features, providing a "ground truth" for the AI model to learn.  This is crucial for making the AI component meaningful.  `np.clip` ensures the APY stays within a reasonable range.
* **AI Model Training:**  The `train_apy_model()` function trains a linear regression model to predict the optimal APY.  It now includes:
    * **Train/Test Split:**  The data is split into training and testing sets to evaluate the model's performance.  `random_state` is added for reproducibility.
    * **RMSE Evaluation:** The root mean squared error (RMSE) is calculated to assess the model's accuracy.  Lower RMSE means better predictions.
* **APY Prediction:** The `predict_optimal_apy()` function uses the trained model to predict the optimal APY for a given set of market conditions.
* **Dynamic APY Adjustment:** The `for` loop simulates the operation of the staking pool over a few days.  *Crucially*, it now dynamically adjusts the staking pool's `staking_apy` based on the AI model's predictions and changing market conditions. This demonstrates how the AI could be used to optimize yield.
* **Example Usage:** The `if __name__ == "__main__":` block demonstrates how to use the classes and functions to simulate staking, unstaking, reward distribution, and AI-driven APY optimization.
* **Comments and Docstrings:**  Extensive comments and docstrings explain the purpose of each section of the code and the arguments/return values of functions.  This is vital for understanding and maintaining the code.
* **Error Handling:** Added some basic checks for invalid stake/unstake amounts. Real-world smart contracts would have much more robust error handling.
* **Realistic Simulation:** The simulation now attempts to model a more realistic scenario.  This includes simulating market conditions, calculating APR, charging fees, and limiting APY values.
* **Clear Output:**  The code provides clear output to track the state of the staking pool and the AI model's predictions over time.
* **Reproducibility:**  Added `random_state` to the train/test split for consistent results.  In a real application, you'd want to track random seeds for full reproducibility.

**To Run the Code:**

1.  **Install Libraries:**
    ```bash
    pip install numpy pandas scikit-learn
    ```
2.  **Run the Python Script:**
    ```bash
    python your_script_name.py
    ```

This revised code provides a much more complete and realistic simulation of an AI-driven liquid staking platform.  It includes the core components of a DeFi protocol (staking, unstaking, liquid tokens, rewards) and demonstrates how AI can be used to optimize staking yields. Remember that this is still a simplified example, and a real-world implementation would be far more complex and require smart contracts on a blockchain.
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