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

1. The Concept and Operating Mechanism of DeFAI

1.1 Overview of DeFi AI

DeFAI is the combination of AI and DeFi. Although the AI-related market has gone through multiple rounds of speculation, from AI computing power to AI Memes, and from different technological architectures to infrastructure, the concept of DeFAI is becoming a new breakthrough trend. Currently, DeFAI can be mainly divided into three categories: AI abstraction, autonomous DeFi agents, and market analysis and prediction.

1.2 The operation process of DeFAI

The core of the DeFAI system is the AI Agent based on the large language model (LLM), which operates on multiple levels, from data collection to decision execution. The main steps include the following:

1. Data Collection: The AI Agent gathers real-time information from on-chain, off-chain, and decentralized data sources.

2. Model Inference: Utilize techniques such as supervised learning, unsupervised learning, reinforcement learning, and natural language processing for complex reasoning and predictions.

3. Decision Making: Based on the collected data and inference results, use the optimization engine and multi-agent system collaboration to make the best decisions.

4. Custody and Operation: AI models are typically hosted on off-chain servers or distributed computing networks, but need to interact with on-chain protocols.

5. Interoperability: Achieve seamless interaction with multiple Decentralized Finance protocols and platforms 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 DeFi and the concept of "intention"

The vision of DeFAI is to enable users to manage their portfolios autonomously, 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 pay attention to the specific execution process. DeFAI seems to provide a new path for realizing "intention".

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

2. Overview of DeFAI Related Projects

Multiple DeFi-related projects have emerged in the current market, including but not limited to:

1. Griffain: A DeFi solution that supports token swaps, liquidity provision, and ecosystem growth.
2. Hey Anon: An AI-driven protocol that simplifies Decentralized Finance interactions.
3. Orbit: A DeFi interface simplification tool that supports multiple chains 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 platform on Ethereum Layer 2.
6. The Hive: A Solana project that integrates multiple AI models to achieve complex Decentralized Finance operations.
7. Bankr: AI-driven cryptocurrency management tool.
8. HotKeySwap: Provides an AI-driven DEX aggregator and cross-chain trading tools.
9. Gekko AI: An AI agent focused on predicting the market.
10. ASYM: Provides AI-driven DEX aggregators and analytical tools.
11. Wayfinder Foundation: A full-chain interactive tool that helps Agents navigate in the on-chain environment.
12. Slate: General AI agent connecting the infrastructure layer.
13. Cod3x: A platform that provides no-code development tools for building automated Decentralized Finance strategies.
14. Almanak: An AI Agent with self-learning capabilities, optimizing Decentralized Finance and gaming projects.
15. HIERO: A multi-chain smart tool that supports the execution of trades through natural language commands.

3. The Development Directions of AI Agents

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

3.1 GameFAI Direction

Representative projects such as M3 (Metaverse Makers), composed of artists and the open-source hacker community. However, the main challenge faced by GameFAI is the long development cycle and the lack of market validation, as there have yet to be any truly explosive AI games even in the Web2 market.

3.2 Decentralized Finance方向

The current DeFi AI projects with top market capitalizations include GRIFFAIN, ANON, OLAS, GRIFT, among others. Among them, the combined market capitalization of GRIFFAIN and ANON accounts for 37.29% of the overall DeFi AI market capitalization.

GRIFFAIN is built on Solana, offering features such as wallet generation and fast transactions. Hey Anon adopts a multi-chain model, supporting multiple public chains, and its founder Daniele's personal influence has brought significant attention to the project.

4. Conclusion

The emergence of DeFAI aligns with the strong financial attributes of blockchain. Whether it's GameFAI or DeFAI, both demonstrate tremendous market potential. GameFAI may continue the concept of the metaverse, utilizing AI to manage virtual assets and economic systems. DeFAI, on the other hand, needs to gradually shift from emotion-driven to actual value-oriented.

The development of AI Agents cannot solely rely on Meme hype, but also requires support from DeFi-type profit models. The ultimate outcome of market competition is worth looking forward to, and the winning model may reshape the future landscape of cryptocurrency finance.