DeFAI: Can the deep integration of AI and Decentralized Finance lead the new wave of AI Agents?

1. Overview of DeFAI

1.1 Definition of DeFi AI

DeFAI is the combination of AI and DeFi. Although AI-related concepts have undergone multiple rounds of speculation, from AI computing power to AI Memes, and from different technical architectures to different infrastructures, DeFAI is emerging as a new breakthrough trend. Currently, DeFAI can be mainly divided into three categories: AI abstraction, autonomous DeFi agents, and market analysis and prediction.

1.2 The operation mechanism of DeFi AI

The core of the DeFAI system is the AI Agent based on the large language model (LLM), which operates on multiple levels, from data collection to decision execution. It mainly includes the following steps:

1. Data Collection: Obtain real-time information from on-chain, off-chain, and decentralized data sources.

2. Model Inference: Using AI technologies such as supervised learning, unsupervised learning, reinforcement learning, and natural language processing for analysis and prediction.

3. Decision Making: Based on the collected data and reasoning results, use optimization engines and multi-agent systems to collaborate in formulating the best strategy.

4. Custody and Operation: You can choose centralized or decentralized methods to custody AI models while maintaining interaction with the blockchain.

5. Interoperability: Interact with multiple Decentralized Finance protocols and platforms through API integration and decentralized messaging.

6. Wallet Management: Use MPC wallets or TEE technology to securely manage keys and execute transactions.

1.3 The vision of DeFAI

The vision of DeFAI is to enable users to independently manage their portfolios through AI agents and various AI platforms, allowing everyone to easily participate in cryptocurrency market trading. This vision resonates with the "intention" driven trading concept, where users only need to focus on trading results without having to worry about the specific execution process.

The large-scale application of blockchain in the future may integrate multiple concepts such as AI Agent, Solver, Intent-Centric, and DeFi.

2. DeFi related projects

Currently, there are multiple DeFi-related projects in the market, including but not limited to:

1. Griffain: An innovative platform that combines AI Agent with blockchain, supporting functions such as token swaps and liquidity provision.

2. Hey Anon: AI-driven Decentralized Finance protocol that simplifies user interaction and aggregates real-time project data.

3. Orbit: Simplifies the Decentralized Finance interface and operations, lowers the participation threshold, and supports multiple blockchains and protocols.

4. Neur: An open-source full-stack application designed for the Solana ecosystem.

5. Modenetwork: The AI x DeFi innovation center platform on Ethereum Layer 2.

6. The Hive: Built on Solana, integrating multiple AI models to achieve complex Decentralized Finance operations.

7. Bankr: An AI-driven cryptocurrency companion that simplifies trading and wallet management.

8. HotKeySwap: Provides AI-driven DEX aggregator and analysis tools.

9. Gekko AI: An AI agent focused on predicting the market.

10. ASYM: Provides AI-driven DEX aggregator and analysis tools.

11. Wayfinder Foundation: A full-chain interactive tool that helps Agents navigate in a chain environment.

12. Slate: A universal AI agent connection infrastructure layer.

13. Cod3x: A platform providing no-code development tools to build automated Decentralized Finance strategies.

14. Almanak: An AI Agent with self-learning capabilities, optimizing Decentralized Finance and gaming projects.

15. HIERO: A multi-chain smart tool that supports natural language commands to complete transactions.

III. The Development Direction of AI Agents

The current development of AI Agents mainly faces two directions: games and Decentralized Finance (DeFi).

3.1 Game Direction

M3 (Metaverse Makers) is one of the representative projects in the gaming direction. However, even in the resource-rich Web2 market, there has not yet been a truly popular AI game. The long development cycle of games is also a challenge.

3.2 Decentralized Finance

The projects ranked at the forefront of market capitalization in the DeFi direction include GRIFFAIN, ANON, OLAS, GRIFT, etc. Among them, the combined market capitalization of GRIFFAIN and ANON accounts for 37.29% of the overall DeFi market capitalization.

GRIFFAIN is built on Solana, providing features such as wallet generation and fast transactions. Hey Anon adopts a multi-chain model, supporting multiple public chains, and the personal influence of its founder has brought significant attention to the project.

4. Conclusion

The emergence of DeFAI aligns with the natural fit between blockchain and financial scenarios. Whether in the gaming or DeFi direction, there is enormous market potential. The gaming direction may continue the concept of the metaverse, using AI to achieve autonomy and prosperity in the virtual world. The DeFi direction needs to gradually shift from emotion-driven to actual value-oriented. The development of AI Agents should not solely rely on Meme speculation but rather require substantial DeFi returns for support. The final outcome of market competition is worth looking forward to.