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

1. The Core Concept of DeFAI

1.1 Definition of DeFi AI

DeFAI is a combination of AI and DeFi. Although AI-related concepts have gone through multiple rounds of hype, from AI computing power to AI Meme, from technical architecture to infrastructure, DeFAI is becoming a new breakthrough. 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 DeFAI

The core of the DeFAI system is the large language model (LLM), which involves multiple aspects of operation:

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

2. Model Inference: Analyze using AI technologies such as supervised learning, unsupervised learning, reinforcement learning, and natural language processing.

3. Decision Making: Based on data and reasoning results, decisions are made through collaboration of optimization engines and multi-agent systems.

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

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

6. Wallet Management: Use MPC wallets or Trusted Execution Environment ( TEE ) for key management and transaction execution.

1.3 The connection between DeFi and "intention"

The vision of DeFAI is to enable users to autonomously manage their investment portfolios, allowing everyone to easily participate in cryptocurrency market trading. This is closely related to the concept of "intention". In intention-driven scenarios, users only need to express their trading purpose without specifying a concrete execution path. DeFAI seems to offer a new way to achieve this vision.

The ultimate form of large-scale blockchain applications in the future may be: AI Agent + Solver + Intent-Centric + DeFAI.

2. Overview of DeFAI Related Projects

Currently, multiple projects have emerged in the DeFi field, including:

• Griffain: A platform supporting AI Agent issuance and Decentralized Finance operations.
• Hey Anon: AI-driven protocol to simplify Decentralized Finance interactions
• Orbit: A multi-chain support platform that lowers the participation threshold for Decentralized Finance.
• Neur: An open-source full-stack application designed specifically for the Solana ecosystem
• Modenetwork: Positioned as the DeFi innovation center on Ethereum Layer 2.
• The Hive: Solana DeFi assistant integrating multiple AI models
• Bankr: An AI companion for simplifying cryptocurrency trading and management
• HotKeySwap: Provides AI-driven DEX aggregator and analysis tools
• Gekko AI: An automated trading solution focused on market prediction
• ASYM: AI-driven DEX aggregator and investment opportunity identification tool
• Wayfinder Foundation: Full Chain AI Interaction Tool
• Slate: General AI Agent Connection Infrastructure Layer
• Cod3x: No-code development tool for building automated Decentralized Finance strategies.
• Almanak: An AI Agent with self-learning capabilities, optimizing Decentralized Finance and gaming projects.
• HIERO: A multi-chain smart tool that can execute natural language trading commands.

III. Development Direction of AI Agent

The development of AI Agents faces two main directions: gaming ( Game ) 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 Web2 market, there hasn't been a truly explosive AI game. The game development cycle is long, and compared to the Decentralized Finance direction, AI games seem to require more market enthusiasm for support.

3.2 Decentralized Finance

The DeFAI projects with the highest market capitalization include GRIFFAIN, ANON, OLAS, GRIFT, etc. Among them:

• GRIFFAIN: Built on Solana, providing features such as wallet generation and fast transactions.
• Hey Anon: Supports multiple chains and is led by well-known founder Daniele, attracting a lot of attention.

4. Outlook

The development prospects of DeFAI are broad, showing great potential in both gaming and Decentralized Finance (DeFi) directions. The gaming direction may continue the concept of the Metaverse, creating a virtual world that evolves autonomously with the help of AI. The DeFi direction needs to shift from emotional speculation to a focus on actual value. The true value of AI Agents should not rely solely on the issuance of Meme coins, but rather provide substantial support for DeFi yields. The ultimate result of market competition is worth looking forward to.