DeFAI: Can the deep integration of AI and DeFi give rise to a new wave of AI Agents?

1. The Concept and Operating Mechanism of DeFAI

1.1 Introduction to Decentralized Finance AI

DeFAI is the combination of AI and Decentralized Finance. Although AI-related concepts have gone through multiple rounds of hype, from AI computing power to AI Memes, from technical architecture to infrastructure, DeFAI as an emerging trend is rising. Currently, DeFAI can be mainly divided into three categories: AI abstraction, autonomous DeFi agents, and market analysis and prediction.

1.2 The operational process of DeFAI

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 inference results, use optimization engines and multi-agent systems to collaborate in formulating the best strategies.

4. Custody and Operation: You can choose a centralized or decentralized method to custody the AI model and execute operations through on-chain interactions.

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

6. Wallet Management: Use technologies like MPC wallets or TEE to ensure transaction security and autonomy.

1.3 The Connection Between DeFAI and the Concept of "Intention"

The vision of DeFAI is to enable users to autonomously manage their portfolios, simplifying the entry barriers to the crypto market. This is akin to the "intention" concept proposed by Paradigm. In intention-driven scenarios, users only need to focus on the trading outcomes without specifying the exact execution path. DeFAI can be seen as a new way to realize intentions and may integrate with concepts such as AI Agent, Solver, and Intent-Centric in the future, jointly promoting the large-scale application of blockchain.

2. Overview of DeFAI Related Projects

Currently, numerous innovative projects have emerged in the DeFi field, mainly including:

1. Griffain: A platform that supports AI Agent issuance and Decentralized Finance operations.
2. Hey Anon: AI-driven Decentralized Finance protocol, simplifying user interactions.
3. Orbit: A multi-chain support platform that lowers the participation threshold for Decentralized Finance.
4. Neur: An open-source full-stack application designed specifically for the Solana ecosystem.
5. Modenetwork: Positioned as the AI x Decentralized Finance innovation center on Ethereum Layer 2.
6. The Hive: A multi-model integrated DeFi platform on Solana.
7. Bankr: AI-driven cryptocurrency management assistant.
8. HotKeySwap: Provides AI-driven DEX aggregator and cross-chain trading tools.
9. Gekko AI: An automated trading solution focused on predicting the market.
10. ASYM: AI-driven DEX aggregator and analytics tool.
11. Wayfinder Foundation: A comprehensive chain interaction tool that assists Agents in navigation and interaction.
12. Slate: General AI agent connection infrastructure layer.
13. Cod3x: A no-code development tool for building automated DeFi strategy agents.
14. Almanak: An AI Agent with self-learning capabilities, optimizing Decentralized Finance and gaming projects.
15. HIERO: A multi-chain smart tool that supports executing trades using natural language commands.

3. The Development Direction of AI Agents

The development of AI Agents in the financial sector faces two main directions: Game and DeFi.

3.1 Game Direction

Projects represented by M3 (Metaverse Makers) show potential, but there has not yet been a truly explosive AI game in the Web2 market. The game development cycle is long, and compared to the Depth direction, AI Games may require more market enthusiasm to support.

3.2 Decentralized Finance

The tokens related to DeFAI that rank among the top in market capitalization include GRIFFAIN, ANON, OLAS, etc. Among them, GRIFFAIN and ANON together account for 37.29% of the total market capitalization of DeFAI.

• GRIFFAIN: Built on Solana, providing features such as wallet generation and fast trading.
• Hey Anon: A multi-chain support platform driven by the well-known founder Daniele, with high market attention.

4. Outlook

The emergence of DeFAI aligns with the development trend of the strong financial attributes of blockchain. Both GameFAI and DeFAI showcase tremendous market potential.

The gaming direction may continue the concept of the metaverse, leveraging AI to achieve the autonomous evolution and prosperity of virtual worlds. The DeFi direction needs to shift from emotional speculation to actual value orientation; the development of AI Agents cannot solely rely on the Meme effect but must be supported by substantial DeFi returns.

As market competition deepens, the ultimate winner in the DeFi field will gradually emerge, and this process is worth our continued attention.