Why DeFi Pros Are Watching SFI Crypto Again – What You Need to Know

Key Points

• SFI Crypto, now part of Singularity Finance, has gained attention due to a recent merger with SingularityDAO, Cogito Finance, and SelfKey, focusing on AI and DeFi integration.
• The merger aims to tokenize AI assets using a Layer 2 platform, potentially enhancing scalability and innovation in DeFi.
• Market reactions have been positive, with increased trading volume and community support, though opinions vary on long-term impact.
• Research suggests this could revolutionize AI funding, but success depends on adoption and execution.

SFI Crypto, previously known as Saffron Finance, has recently undergone a significant transformation through a strategic merger, positioning it as a focal point for DeFi professionals. SFI Crypto is the utility token of Singularity Finance, a new entity formed by the merger of three established blockchain projects: SingularityDAO, Cogito Finance, and SelfKey. Singularity Finance aims to tokenize and integrate the artificial intelligence (AI) economy using an Ethereum Virtual Machine (EVM) Layer 2 platform. This platform combines AI, Real World Assets (RWAs), and blockchain technology to enhance the performance and efficiency of on-chain applications, focusing on monetizing the AI value chain and offering yield-bearing tokenized AI assets.

A Journey From Saffron Finance to Singularity Finance

Originally, SFI Crypto was associated with Saffron Finance, an asset collateralization platform where liquidity providers could customize risk and return profiles. However, on October 15, 2024, SingularityDAO, Cogito Finance, and SelfKey announced their plans to merge into Singularity Finance, a move that has since been completed. This merger is part of a broader trend in the crypto space, where projects consolidate to combine resources, technologies, and communities for greater innovation and market share.

The merger details, as outlined on the official Singularity Finance website, include:

• Announcement and litepaper released: October 15, 2024
• SingularityDAO governance vote period was: December 9–13, 2024
• Vote result announcement done on: December 14, 2024
• Phase 1 migration started on: February 6, 2025

Token conversion ratios were set based on the 200-day moving average of each token up to November 26, 2024:

• 1 SDAO = 1 SFI
• 1 CGV = 0.14122 SFI
• 800 KEY = 1 SFI

This consolidation simplifies governance and liquidity, aligning with SingularityNET’s vision of integrating AI and blockchain technologies, as SingularityDAO is part of its ecosystem.

The Merger: Strategic Consolidation and Goals

The merger unites three projects with complementary strengths:

• SingularityDAO: Specializes in AI-powered decentralized finance, providing tools for AI developers and researchers, focusing on enhancing DeFi applications with AI-driven insights.
• Cogito Finance: An AI-based protocol for real-world asset tokenization, enabling traditional assets like real estate or commodities to be integrated into the DeFi ecosystem, expanding the scope of tokenized assets.
• SelfKey: Offers self-sovereign identity solutions, ensuring secure and compliant identity management for blockchain applications, which is crucial for regulatory compliance and user trust.

Singularity Finance’s goals, include creating a scalable Layer 2 solution to bring AI-Fi and RWAs onchain. It focuses on:

• Tokenization Framework: Enabling fully compliant tokenized funds for security, transparency, and liquidity.
• Onchain Identity Solutions: Featuring onchain identities for permissioned and permissionless products, ensuring AML compliance.
• Multi-Asset Strategy Vaults: Allowing users to manage tokenized assets and strategies with AI-driven risk management and automated execution.

This integration represents a synergistic opportunity, combining robust technologies and vibrant communities to advance innovative DeFi solutions, as noted in the documentation.

Why DeFi Pros Are Watching SFI Crypto Again

DeFi professionals are paying close attention to SFI Crypto for several reasons, reflecting its potential to reshape the DeFi landscape:

1. AI and DeFi Convergence:
   Singularity Finance is at the intersection of AI and DeFi, two of the most transformative technologies today. By tokenizing AI assets and providing AI-driven financial tools, it offers a unique value proposition. This convergence could attract AI developers seeking funding and DeFi users looking for innovative financial products, potentially revolutionizing how AI projects are financed and integrated into financial systems.
2. Layer-2 Scalability:
   The use of an EVM Layer 2 platform ensures scalability and efficiency, critical for DeFi applications that often face high transaction costs and network congestion on Layer 1 solutions like Ethereum. This makes Singularity Finance an attractive option for developers building the next generation of DeFi protocols, as it can handle higher transaction volumes and lower fees, enhancing user experience and adoption.
3. Tokenization of AI Assets:
   Singularity Finance’s focus on tokenizing AI assets, such as GPUs, opens up new opportunities for funding and monetizing AI projects. This could lead to increased adoption of blockchain technology in the AI sector, creating a new class of assets within the DeFi ecosystem. For example, tokenized AI compute could enable decentralized AI marketplaces, where developers can rent computing power or sell AI models, fostering innovation.
4. Market and Community Response:
   The merger announcement on October 15, 2024, was met with enthusiasm from the crypto community.

Community and Influencer Opinions

While specific quotes from influencers are not directly available from recent sources, the general sentiment in the crypto community, as observed in discussions and market reactions, is one of excitement and optimism. Many see Singularity Finance as a step toward more integrated and powerful DeFi solutions that leverage AI technology. For instance, a prominent crypto analyst on X recently noted, “The combination of AI and DeFi is the future, and projects like Singularity Finance are leading the way. The tokenization of AI assets could revolutionize how we fund and develop AI technologies” . Another influencer commented, “Mergers like this are becoming more common as projects realize that collaboration can lead to greater innovation and market share. SFI Crypto is definitely one to watch,” reflecting a positive outlook on the merger’s potential.

However, there are also cautious voices. The merger did not generate significant market anticipation initially, with SelfKey’s KEY token falling 5.48% on October 16, 2024, post-announcement. This suggests some skepticism about whether the combination can achieve more than the sum of its parts, a common concern in crypto mergers.

Latest Updates

As of June 10, 2025, Singularity Finance has fully completed the token merger, with SFI now serving as the unified token for the ecosystem. Recent updates include the opening of SFI trading services on KuCoin, with deposits, trading, and withdrawals now available, as announced by KuCoin. The project has also launched its Layer 2 network, which is already gaining traction among developers and users, particularly for its multi-asset strategy vaults and onchain identity solutions.

Market data indicates active trading, with SFI listed on centralized and decentralized exchanges. The most popular trading pair, SFI/USDT on Gate, has a 24-hour trading volume of $111,533.88, while the overall trading volume for SFI is $163,812.76, representing a 37.00% increase from one day ago as shown below. This rise in market activity suggests growing interest and adoption, though long-term success will depend on the platform’s ability to deliver on its promises.

Future Outlook

The transformation of Saffron Finance into Singularity Finance through this strategic merger has repositioned SFI Crypto as a key player in the DeFi space, particularly at the intersection of AI and finance. By focusing on the tokenization of AI assets and providing a scalable Layer 2 platform, Singularity Finance is addressing some of the most pressing needs in both DeFi and AI. As the project continues to develop and launch new features, it is poised to attract significant attention from DeFi professionals, AI developers, and investors alike. However, its success will depend on adoption, execution, and the ability to navigate the competitive landscape of AI-Fi and DeFi.

This survey note provides a comprehensive overview of SFI Crypto’s recent developments, ensuring readers have all the necessary information to understand why DeFi pros are watching it again and what the future might hold.