DeFAI: The Fusion Wave of AI and Decentralized Finance

1. DeFAI Concept Analysis

1.1 Definition of Decentralized Finance

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 Meme, from technical architecture to infrastructure, DeFAI as an emerging concept is becoming a new focus in the market. Currently, DeFAI can be mainly divided into three categories: AI abstraction, autonomous DeFi agents, and market analysis and prediction.

1.2 Decentralized Finance AI Operating Mechanism

The core of the DeFAI system is the large language model (LLM), which operates through multiple complex stages:

1. Data Collection: Obtain real-time 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 complex analysis.

3. Decision Making: Based on data and reasoning results, weigh multiple variables to make optimal decisions.

4. Custody and Operation: The model may be hosted on centralized or decentralized computing networks.

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

6. Wallet Management: Use MPC wallets or TEE technology to ensure secure key management and transaction execution.

1.3 The vision of DeFAI

DeFAI aims to enable users to manage their portfolios independently and lower the entry barrier to participating in the crypto market through AI agents and platforms. This vision aligns closely with the concept of "intention," allowing users to focus solely on trading outcomes without the need to specify a particular execution path.

The ultimate form of future blockchain applications may be the integration of AI Agent, Solver, Intent-Centric, and DeFAI.

2. DeFAI Project Overview

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

• Griffain: Supports the issuance of AI Agents and provides Decentralized Finance solutions.
• Hey Anon: AI-driven Decentralized Finance protocol that simplifies user interaction.
• Orbit: Lower the participation threshold for Decentralized Finance, supporting multiple chains and protocols.
• Neur: An open-source full-stack application designed for the Solana ecosystem.
• Modenetwork: Ethereum Layer2 DeFi innovation platform.
• The Hive: Integrates multiple AI models to achieve complex Decentralized Finance operations.
• Bankr: An AI-driven cryptocurrency assistant that simplifies the trading process.
• HotKeySwap: Provides AI-driven DEX aggregator and analytics tools.
• Gekko AI: An automated trading solution focused on predicting the market.
• ASYM: AI-driven DEX aggregator that identifies high return opportunities.
• Wayfinder Foundation: A cross-chain interactive tool that assists Agents in navigation.
• Slate: A universal AI agent connecting the infrastructure layer.
• Cod3x: No-code tool for building automated Decentralized Finance strategy agents.
• Almanak: An AI Agent with self-learning capabilities.
• HIERO: A multi-chain smart tool that supports natural language command trading.

3. The Development Direction of AI Agents

The development of AI Agents in the financial sector faces two main directions:

3.1 Game Direction

Projects represented by M3 show potential, but face challenges from Web2 market competition and long development cycles.

3.2 Decentralized Finance方向

Several projects have already emerged, such as GRIFFAIN and Hey Anon. These projects focus on providing more convenient Decentralized Finance operations and cross-chain services.

4. Conclusion

The rise of DeFAI reflects the trend of the integration of blockchain and AI. Whether in gaming or Decentralized Finance, it shows tremendous potential. In the future, DeFAI projects may gradually transition from initial emotional speculation to actual value orientation. The true value of AI Agents will not solely depend on the Meme effect but will require solid DeFi returns for support. The final outcome of market competition is worth looking forward to.