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

1. Overview of DeFAI

1.1 DeFi definition

DeFAI is the combination of AI and Decentralized Finance. Although AI-related concepts have gone through multiple rounds of hype, 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 DeFi Operating Mechanism

The core of the DeFAI system is the large language model (LLM), which operates on multiple levels:

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

2. Model Inference: Use AI technologies such as supervised learning, unsupervised learning, reinforcement learning, and natural language processing for analysis.

3. Decision Making: Use optimization engines and multi-agent systems to collaborate in formulating the best strategy.

4. Custody and Operation: The custody model can be centralized or decentralized.

5. Interoperability: Interacting with various Decentralized Finance protocols through APIs and decentralized messaging.

6. Wallet Management: Securely manage keys using MPC wallets or TEE technology.

1.3 DeFAI Vision and the Concept of "Intent"

The vision of DeFAI is to enable users to manage their portfolios autonomously, allowing everyone to easily participate in cryptocurrency market trading. This resonates with the concept of "intent," where users only need to focus on the trading results rather than the execution process. Future blockchain applications may integrate concepts such as AI Agent, Solver, Intent-Centric, and DeFAI.

2. DeFAI Related Projects

The DeFi field has seen the emergence of multiple innovative projects, including:

• Griffain: A platform that supports the issuance of AI Agents.
• Hey Anon: AI-driven Decentralized Finance protocol
• Orbit: A platform that simplifies Decentralized Finance operations
• Neur: An open-source application designed specifically for the Solana ecosystem
• Modenetwork: Ethereum Layer 2 Decentralized Finance innovation platform
• The Hive: A Solana project integrating multiple AI models
• Bankr: AI-driven cryptocurrency assistant
• HotKeySwap: Provides AI-driven DEX aggregator and analytics tools
• Gekko AI: An AI agent focused on automated trading
• ASYM: Provides AI-driven DEX aggregator and analytical tools
• Wayfinder Foundation: All-Chain Interactive AI Tool
• Slate: General AI Agent Connection Infrastructure
• Cod3x: No-code development tool for building Decentralized Finance strategy proxies
• Almanak: AI Agent with self-learning capabilities
• HIERO: Multi-chain smart tool supports natural language commands

3. The Development Direction of AI Agents

The development of AI Agents in the financial sector faces two main directions: gaming ( Game ) and Decentralized Finance.

3.1 Game Direction

Projects represented by M3 show potential, but there have yet to be any truly explosive AI games in the Web2 market. The game development cycle is long and requires more market enthusiasm for support.

3.2 Decentralized Finance

The DeFAI projects ranked at the top by market capitalization include GRIFFAIN, ANON, OLAS, etc. Among them, GRIFFAIN and ANON together account for 37.29% of the total DeFAI market capitalization.

• GRIFFAIN: Built on Solana, offering wallet generation and fast transaction features.
• Hey Anon: Multi-chain support, led by renowned founder Daniele.

4. Outlook

The development prospects of DeFAI are broad, whether it is GameFAI or DeFAI, both show huge potential. The gaming direction may continue the concept of the metaverse, achieving autonomy and prosperity. The DeFi direction needs to shift from emotional hype to actual value orientation. The success of AI Agents should not rely solely on Memes, but should be supported by substantial DeFi returns. The ultimate outcome of market competition is worth looking forward to.