DeFAI: The Deep Integration of AI and Decentralized Finance, Can It Lead the New Wave of AI Agents?

1. The Concept and Operating Mechanism of DeFAI

1.1 Introduction to DeFi

DeFAI is the combination of AI and DeFi. Although AI-related concepts have gone through multiple rounds of hype, from AI computing power to AI Memes, from various technological architectures to different infrastructures, DeFAI is becoming a new breakthrough. Currently, DeFAI is mainly divided into three categories: AI abstraction, autonomous DeFi agents, and market analysis and prediction.

1.2 The operation process of DeFi

The core of the DeFAI system is the large language model (LLM), which operates on multiple levels, from data collection to decision execution. Most models follow the following six workflows:

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 reasoning and prediction.

3. Decision Making: Based on the collected data and reasoning results, use optimization engines and multi-agent systems to collaborate in formulating the best strategies.

4. Custody and Operation: Custodize AI models through centralized or decentralized methods and interact with on-chain protocols.

5. Interoperability: Seamlessly interact with multiple Decentralized Finance protocols and platforms 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 Relation Between DeFAI and the Concept of "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 vision is closely related to the concept of "intention". In intention-driven scenarios, users only need to focus on the trading results without having to worry about the specific execution process. DeFAI seems to provide a new pathway 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 DeFi-related projects have emerged in the market, including but not limited to:

1. Griffain: An innovative platform that combines AI Agent and blockchain, supporting token swaps and liquidity provision.

2. Hey Anon: AI-driven Decentralized Finance protocol that simplifies user interaction and executes complex operations.

3. Orbit: Lower the participation threshold for Decentralized Finance, supporting multiple blockchains and protocols.

4. Neur: An open-source full-stack application designed for the Solana ecosystem.

5. Modenetwork: Positioned as the AI x DeFi innovation center for Ethereum Layer 2.

6. The Hive: Integrates 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: An automated trading solution focused on market prediction.

10. ASYM: An AI-driven DEX aggregator that identifies high return investment opportunities.

11. Wayfinder Foundation: AI full-chain interactive tool that assists Agents in navigating the on-chain environment.

12. Slate: Universal AI agent connecting the infrastructure layer, simplifying on-chain operations.

13. Cod3x: Provides no-code development 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. The Development Direction of AI Agents

The future development direction of AI agents is mainly divided into two directions: GameFAI and DeFi.

3.1 GameFAI

GameFAI represents projects like M3 ( Metaverse Makers ), composed of artists and the open-source hacker community. However, the main challenge faced by GameFAI is that even in the resource-rich Web2 market, there has yet to be a truly explosive AI game. The game development cycle is long, and compared to DeFi, GameFAI may require more market enthusiasm.

3.2 Decentralized Finance

The top projects by market capitalization in the DeFi space include GRIFFAIN, ANON, OLAS, etc. Among them, the combined market capitalization of GRIFFAIN and ANON accounts for 37.29% of the total market capitalization of DeFi.

• GRIFFAIN: Built on Solana, leading in market capitalization, offering features such as wallet generation and fast transactions.

• Hey Anon: Supports multiple public chains, driven by the well-known founder Daniele, with high market attention.

4. Conclusion

The emergence of DeFAI aligns with the strong financial attributes of blockchain. Both GameFAI and DeFAI demonstrate tremendous market potential. GameFAI may continue the concept of the metaverse, realizing a self-evolving virtual world. DeFAI, on the other hand, needs to shift from emotional speculation to a focus on actual value. The development of AI Agents cannot solely rely on the Meme effect but needs substantial Decentralized Finance returns to support it. The ultimate outcome of market competition is worth looking forward to.