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

1. Overview of DeFAI

1.1 Definition of Decentralized Finance

DeFAI is the combination of AI and Decentralized Finance. Although AI-related topics have gone through multiple rounds of hype, from computing power to memes, from technical architecture to infrastructure, the concept of DeFAI is becoming a new breakthrough trend. Currently, DeFAI is mainly divided into three categories: AI abstraction, autonomous DeFi agents, and market analysis and prediction.

1.2 Decentralized Finance运作机制

In the DeFAI system, the AI Agent is centered around the large language model (LLM), involving a multi-layered process from data collection to decision execution. The main steps include the following:

1. Data collection: Gather information from on-chain, off-chain, and decentralized data sources.
2. Model Inference: Utilizing techniques such as supervised learning, unsupervised learning, reinforcement learning, and natural language processing for analysis.
3. Decision Making: Make decisions based on data and inference results through collaboration of optimization engines and multi-agent systems.
4. Custody and Operation: Custody of the model through centralized or decentralized means, and interaction with on-chain protocols.
5. Interoperability: Interacting with various Decentralized Finance protocols through API integration and decentralized messaging.
6. Wallet Management: Use MPC wallets or TEE technology for secure key management and transaction execution.

1.3 The Relationship Between DeFAI and "Intention"

The vision of DeFAI is to enable users to manage their portfolios independently and simplify the entry barriers to participating in the crypto market. This concept resonates with the notion of "intent," meaning users only need to focus on the trading results without having to specify the exact execution path. DeFAI can be seen as a new way to realize "intent," and in the future, it may work alongside concepts such as AI Agent, Solver, and Intent-Centric to build the ultimate form of blockchain applications.

2. DeFAI Project Overview

Currently, multiple DeFi-related projects have emerged in the market, mainly including:

1. Griffain: Supports the issuance of AI Agents and provides Decentralized Finance solutions.
2. Hey Anon: AI-driven Decentralized Finance protocol, simplifying user interaction.
3. Orbit: Lower the barriers to entry for Decentralized Finance participation, supporting multiple chains and protocols.
4. Neur: An open-source full-stack application designed specifically for the Solana ecosystem.
5. Modenetwork: An AI x DeFi innovation platform on Ethereum Layer 2.
6. The Hive: Integrating multiple AI models to achieve complex Decentralized Finance operations.
7. Bankr: An AI-driven cryptocurrency assistant that simplifies trading and wallet management.
8. HotKeySwap: Provides an AI-driven DEX aggregator and cross-chain trading tools.
9. Gekko AI: Focused on automated trading solutions.
10. ASYM: AI-driven DEX aggregator and analytics tool.
11. Wayfinder Foundation: A full-chain interactive tool that assists Agents in navigating the on-chain environment.
12. Slate: General AI Agent Connection Infrastructure Layer.
13. Cod3x: Provides no-code tools to build automated Decentralized Finance 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 natural language commands to complete transactions.

3. Development Directions of AI Agents

The current development of AI Agents in the financial sector mainly presents two directions:

3.1 Game Direction

Represented by M3 (Metaverse Makers), but facing challenges such as competition from the Web2 market and long development cycles. Although there is huge potential in the gaming field, there has not yet been a truly explosive AI game.

3.2 Decentralized Finance方向

The DeFAI project is thriving, with top market cap rankings including GRIFFAIN, ANON, OLAS, among others. GRIFFAIN and ANON together account for 37.29% of the total market cap of DeFAI. GRIFFAIN is built on Solana and offers features such as wallet generation and fast trading. Hey Anon adopts a multi-chain model, supporting multiple public chains, and its founder Daniele's influence has brought significant attention to the project.

4. Conclusion

The rise of DeFAI stems from the natural fit between blockchain and financial scenarios. Whether in gaming or the Decentralized Finance direction, there is enormous market potential. The gaming direction may continue the concept of the metaverse, leveraging AI to achieve a self-evolving virtual world. The Decentralized Finance direction needs to shift from emotional speculation to a focus on actual value, and the development of AI Agents should not rely solely on memes, but rather require substantial Decentralized Finance yield support. The ultimate outcome of market competition is worth looking forward to, as only projects that genuinely create value for users can succeed in the long run.