This move by Sei is pretty interesting—they directly integrated Allora’s predictive AI into the underlying layer. It’s like giving the blockchain a “fortune-telling” oracle that can foresee price trends, volatility, and risk signals in advance.

What can this actually do? There are plenty of real-world use cases:

Decentralized exchanges and contract platforms can dynamically adjust fees and optimize liquidity distribution based on predictions, preparing for big swings before they happen. Lending protocols go even further—if the system detects risks surging, it can immediately lower collateral ratios and raise interest rates, preemptively blocking cascading liquidations. Strategy vaults and automated agents can use predictive signals to reduce positions or rebalance, instead of waiting to react after losses. Even structured products can get creative—not just modeling based on historical data, but designing strategies based on forward-looking signals.

Simply put, it’s turning DeFi from “hindsight experts” into “proactive planners.”