DeFAI: Can the fusion of AI and Decentralized Finance give rise to a new wave of AI Agents?

1. Overview of DeFAI

1.1 Definition of Decentralized Finance

DeFAI is a combination of AI and Decentralized Finance. Although the market value of AI Agents has generally declined recently, the DeFAI concept 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 Operational Mechanism

In the DeFAI system, the core of the AI Agent is the large language model (LLM), whose operation involves multi-level processes and technologies. According to research, most models follow the workflow outlined below:

1. Data collection: Gather information from on-chain, off-chain, and decentralized data sources.

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

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

4. Custody and Operation: Custody of the model through centralized or decentralized methods, and interaction with on-chain protocols.

5. Interoperability: Interact with various Decentralized Finance protocols 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 DeFAI and the concept of "intention"

The vision of DeFAI shares similarities with the concept of "intention". "Intention" emphasizes that users focus only on the transaction outcome rather than the execution process, which resonates with DeFAI's idea of simplifying user participation through AI agents. Future blockchain applications may integrate concepts such as AI Agent, Solver, Intent-Centric, and DeFAI.

2. DeFAI Related Projects

Currently, multiple DeFi projects have emerged in the market, including:

1. Griffain: A platform that supports AI Agent issuance and Decentralized Finance operations.
2. Hey Anon: AI-driven Decentralized Finance protocol that simplifies user interaction.
3. Orbit: A platform that lowers the participation threshold for Decentralized Finance.
4. Neur: An open-source full-stack application designed for the Solana ecosystem.
5. Modenetwork: Positioned as an AI x Decentralized Finance innovation platform on Ethereum Layer 2.
6. The Hive: A Solana DeFi tool that integrates multiple AI models.
7. Bankr: An AI-driven cryptocurrency management assistant.
8. HotKeySwap: Provides AI-driven DEX aggregator and analytics tools.
9. Gekko AI: An AI agent focused on predicting the market.
10. ASYM: Provides AI-driven DEX aggregator and analytics tools.
11. Wayfinder Foundation: AI full-chain interactive tool.
12. Slate: General AI agent connecting infrastructure layer.
13. Cod3x: A no-code development tool for building automated Decentralized Finance strategies proxies.
14. Almanak: An AI Agent with self-learning capabilities.
15. HIERO: A multi-chain smart tool that supports natural language command trading.

3. The Development Direction of AI Agents

The development of AI Agent faces two main directions: gaming (GameFAI) and Decentralized Finance (DeFAI).

3.1 GameFAI direction

Representative projects like M3 (Metaverse Makers) face the challenge of a lack of blockbuster AI games in the Web2 market. The game development cycle is long and may require more market enthusiasm for support.

3.2 Decentralized Finance方向

The main projects ranked by market capitalization are GRIFFAIN, ANON, OLAS, GRIFT, etc. GRIFFAIN and ANON together account for 37.29% of the total market capitalization of DeFi. GRIFFAIN is built on Solana and offers wallet generation and fast transaction features. Hey Anon adopts a multi-chain model, driven by the well-known founder Daniele to attract market attention.

4. Outlook

The emergence of DeFAI aligns with the financial attributes of blockchain. In the future, 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, and the development of AI Agents may require support from DeFi revenue models. The final outcome of market competition is worth looking forward to.