Interpretability

The cryptocurrency market is infamous for its volatility, fragmented data, and narrative-driven swings. While traditional deep learning systems crunch historical charts in search of patterns, they often do so blindly—ignoring the social, regulatory, and macroeconomic tides that move crypto prices. Enter MountainLion, a bold new multi-agent system that doesn’t just react to market signals—it reasons, reflects, and explains. Built on a foundation of specialized large language model (LLM) agents, MountainLion offers an interpretable, adaptive, and genuinely multimodal approach to financial trading. ...

Chain-of-Thought (CoT) prompting has become a go-to technique for improving multi-step reasoning in large language models (LLMs). But is it really helping models think better—or just encouraging them to bluff more convincingly? A new paper from Leiden University, “How does Chain of Thought Think?”, delivers a mechanistic deep dive into this question. By combining sparse autoencoders (SAEs) with activation patching, the authors dissect whether CoT actually changes what a model internally computes—or merely helps its outputs look better. ...

Can we prove that we understand how a transformer works? Not just describe it heuristically, or highlight patterns—but actually trace its computations with the rigor of a math proof? That’s the ambition behind the recent paper Mechanistic Interpretability for Transformers: A Formal Framework and Case Study on Indirect Object Identification. The authors propose the first comprehensive mathematical framework for mechanistic interpretability, and they use it to dissect how a small transformer solves the Indirect Object Identification (IOI) task. What results is not just a technical tour de force, but a conceptual upgrade for the interpretability field. ...

Fine-tuning is the hammer; steering is the scalpel. In an era where models are increasingly opaque and high-stakes, we need tools that guide behavior without overhauling the entire architecture. That’s precisely what GRAINS (Gradient-based Attribution for Inference-Time Steering) delivers: a powerful, interpretable, and modular way to shift the behavior of LLMs and VLMs by leveraging the most fundamental unit of influence—the token. The Problem with Global Steering Traditional inference-time steering approaches often rely on global intervention vectors: a blunt, one-size-fits-all shift in hidden activations derived from paired desirable and undesirable examples. But these methods are insensitive to which specific tokens caused bad behavior. It’s like adjusting a recipe because the dish tastes bad—without checking if the salt or the sugar was at fault. ...