DeFAI: A New Era of Financial Technology

From DeFi to DeFAI: A Revolutionary Evolution

In 2021, the DeFi craze swept across the cryptocurrency market, with multiple projects reaching market capitalizations of billions of dollars. However, the early DeFi ecosystem faced serious user experience issues and high operational thresholds, resulting in limited practical applications.

In contrast, today's DeFAI has learned from past experiences and made a qualitative leap in product maturity:

1. Product First: Release tokens only after having a substantive product.
2. Substantial Returns: Token holders can earn tangible benefits.
3. Functional enhancement: The token is not only used for voting but is also key to unlocking core functionalities.
4. Reasonable Valuation: The valuation is closer to reality, and ordinary investors also have the opportunity to share in the growth dividends.

DeFAI: A New Solution for Simplified Finance

The biggest pain point of DeFi lies in its complexity and unfriendly user interface. Using DeFi often requires going through a series of cumbersome steps, including installing a Web3 wallet, transferring assets across different blockchains, paying gas fees, and approving smart contracts. This complexity seriously hinders the widespread adoption of DeFi.

The core value of DeFAI lies in simplifying these cumbersome steps using AI technology. Imagine that users can complete complex financial operations through simple conversations, without needing to understand the underlying technical details. This simplification will greatly promote the popularity of crypto finance.

DeFAI Ecosystem Overview

The DeFAI ecosystem mainly includes five core sectors:

1. Abstraction Layer: Simplifying complex operations through a dialogue interface.
2. AI Trading Tools: Improve trading efficiency and success rate
3. Autonomous Agency: Achieving automated management of assets
4. Agent Framework: Providing AI-driven solutions for future on-chain activities.
5. Infrastructure: Provide necessary technical support and resources for DeFAI.

Each sector has some projects worth paying attention to, as they are driving the development and application of DeFAI technology.

The Market Potential of DeFAI

Considering the following factors, DeFAI's market potential may exceed the total market capitalization of DeFi at $174 billion during the previous bull market:

• AI technology has become widely popular, with low market education costs.
• Cryptocurrency investment channels are more convenient.
• Market liquidity is sufficient, and the market capitalization of stablecoins has reached a new high.
• The user base of cryptocurrency has significantly increased.

Currently, the total market capitalization of the DeFAI sector is only in the tens of billions of dollars. Considering the core issues it addresses and the enormous market potential, the total market capitalization of DeFAI is expected to easily exceed 10 billion dollars before the end of this market cycle.

Conclusion

DeFAI's mission is to simplify complex DeFi operations to be as easy as using mobile payments. This is not only an evolution of DeFi but also a perfect combination of two major technological waves: blockchain and AI, representing the development direction of the internet for the next decade.

Currently, the DeFAI field is still in its early stages, providing tremendous opportunities for investors and innovators. With continuous technological advancements and the expansion of application scenarios, DeFAI is expected to become a key force driving the fintech revolution.