March 28 (PROTOCOL VILLAGE EXCLUSIVE): Layer N, an “Ethereum StateNet” designed as a network of custom VMs, announced the launch of AI Functions, a tool that allows developers to integrate AI inference and AI use cases within their applications. This is in partnership with Modulus Labs, a company focused on bringing AI on-chain through ZK technology. Examples of use cases could include replacing AMMs with more sophisticated models, yield optimization strategies, gaming and AI crypto agents and AI arbitration. “Imagine a prediction market that includes AI-based arbitration of event outcomes, reducing the risk of consensus collusion,” the team wrote in a blog post.