DeFAI: A New Wave Merging Decentralized Finance and AI

1. The Essence and Operating Mechanism of DeFAI

1.1 Definition of DeFi AI

DeFAI is the fusion of AI and Decentralized Finance. Although AI-related concepts have gone through multiple rounds of hype, from AI computing power to AI memes, and from different technical architectures to different infrastructures, DeFAI as an emerging concept is becoming a new breakthrough. Currently, DeFAI can be mainly divided into three categories: AI abstraction, autonomous DeFi agents, and market analysis and forecasting.

1.2 The operation process of DeFAI

The core of the DeFAI system is the AI Agent based on the large language model (LLM), and its operation involves multiple complex processes:

1. Data collection: Obtain real-time market information from on-chain, off-chain, and decentralized data sources.

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

3. Decision Making: Based on the analysis results, weigh various factors and formulate the optimal strategy.

4. Custody and Operation: The model may be hosted on centralized or decentralized computing networks, while interacting with on-chain protocols.

5. Interoperability: Achieve seamless interaction with multiple Decentralized Finance protocols through API integration and decentralized messaging.

6. Wallet Management: Use MPC wallets or TEE technology to ensure transaction security and autonomy.

1.3 The association between DeFi and the concept of "intention".

The vision of DeFAI is similar to the "intention" driven trading philosophy. Users only need to express their trading goals without specifying a concrete execution path. This approach makes DeFAI a new way to realize "intention", providing the possibility for the large-scale application of blockchain in the future.

2. Overview of the DeFAI Project

Currently, multiple DeFi-related projects are emerging in the market, such as Griffain, Hey Anon, Orbit, etc. These projects focus on different aspects, including AI Agent issuance, simplified DeFi operations, cross-chain trading support, and more.

3. Development Directions of AI Agents

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

3.1 GameFAI direction

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

3.2 Decentralized Finance方向

Currently, the projects with high market capitalization include GRIFFAIN, ANON, and others. GRIFFAIN is built on Solana and offers wallet generation and fast trading features. Hey Anon adopts a multi-chain model, supporting multiple public chains, and the influence of its founder has brought attention to the project.

IV. Conclusion

The emergence of DeFAI aligns with the strong financial attributes of blockchain. Both GameFAI and DeFAI demonstrate tremendous market potential. In the future, GameFAI may achieve autonomy and prosperity in the virtual world with the assistance of AI. The development in the DeFi direction needs to shift from emotional speculation to practical value orientation. The true value of AI Agents should not be limited to issuing Meme tokens, but should be supported by practical applications for their long-term development. The final outcome of market competition is worth looking forward to, as only projects that can genuinely create value for users will succeed in the long run.