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

1. Overview of DeFAI

1.1 Definition of Decentralized Finance

DeFAI is the combination of AI and Decentralized Finance. Although the concept of AI has gone through multiple rounds of hype, from AI computing power to AI Memes, from technical architecture to infrastructure, 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, from data collection to decision execution. Generally speaking, the DeFAI model follows the following workflow:

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 analysis and prediction.

3. Decision Making: Based on the collected data and reasoning results, make decisions collaboratively using the optimization engine and multi-agent system.

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

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

6. Wallet Management: Use MPC wallets or TEE technology to manage keys for secure transactions.

1.3 DeFi and Intent

The vision of DeFAI is to empower users to manage their portfolios independently, allowing everyone to easily participate in cryptocurrency market trading. This vision resonates with the concept of "intention." In an intention-driven trading model, users only need to focus on the trading outcomes without having to specify a concrete execution path. DeFAI appears to offer new possibilities for realizing intentions.

2. DeFAI Related Projects

Currently, there are several DeFi projects on the market, including:

1. Griffain: Supports the issuance of AI Agents and provides solutions for token swaps, liquidity, and ecosystem growth.

2. Hey Anon: AI-driven Decentralized Finance protocol that simplifies interactions and executes complex operations through natural language processing.

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

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

5. Modenetwork: Ethereum Layer 2's AI x Decentralized Finance innovation platform.

6. The Hive: Built on Solana, integrating 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 AI-driven DEX aggregator and cross-chain trading tools.

9. Gekko AI: An AI agent focused on predicting the market, providing automated trading strategies.

10. ASYM: AI-driven DEX aggregator and analysis tool that identifies high return opportunities.

11. Wayfinder Foundation: A full-chain interactive tool that helps Agents navigate in the on-chain environment.

12. Slate: A universal AI agent connecting the infrastructure layer, transforming natural language commands into 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 intelligent tool that supports executing trades through natural language commands.

3. Development Directions of AI Agents

The financial direction of AI Agent currently faces two choices: game (Game) and Decentralized Finance.

3.1 Game Direction

M3 (Metaverse Makers) could be the most promising representative in the gaming direction. However, even in the resource-rich Web2 market, there hasn't been a truly explosive AI game yet. The long development cycle of games is also a challenge.

3.2 Decentralized Finance方向

In the DeFAI project, GRIFFAIN and ANON have the largest market capitalization shares. GRIFFAIN is built on Solana and provides features like wallet generation and fast trading. Hey Anon adopts a multi-chain model, supporting multiple public chains, and the influence of its founder has brought attention to the project.

4. Summary

The emergence of DeFAI aligns with the financial attributes of blockchain. Whether in the gaming or DeFi direction, it showcases market potential. The gaming direction may continue the concept of the metaverse, realizing a self-evolving virtual world. The DeFi direction needs to shift from emotional speculation to actual value orientation. The development of AI Agents cannot solely rely on Meme tokens, but requires support from real DeFi yields. The final outcome of market competition is worth looking forward to.