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

1. Overview of DeFAI

1.1 Definition of DeFi

DeFAI is the combination of AI and Decentralized Finance. Although AI-related topics have gone through multiple rounds of hype, from computing power to memes, from technical architecture to infrastructure, DeFAI as an emerging concept is rising. Currently, DeFAI is mainly divided into three categories: AI abstraction, autonomous DeFi agents, and market analysis and prediction.

1.2 The operation mechanism of DeFAI

The core of the DeFAI system is the AI Agent based on the large language model (LLM), and its operation involves multiple levels, from data collection to decision execution. It mainly includes the following steps:

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

2. Model Inference: Analyzing and predicting using techniques such as supervised learning, unsupervised learning, reinforcement learning, and natural language processing.

3. Decision Making: Based on the collected data and inference results, use optimization engines and multi-agent systems to collaborate in formulating the best strategies.

4. Custody and Operation: You can choose to host AI models in a centralized or decentralized manner, and execute operations through on-chain interactions.

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

6. Wallet Management: Use MPC wallet or TEE technology for secure key management and transaction execution.

1.3 The connection between DeFAI and "intention"

The vision of DeFAI is to enable users to manage their investment portfolios autonomously, simplifying participation in the cryptocurrency market. This is similar to the "intent" driven trading concept, where users only need to focus on the trading outcomes without concerning themselves with the specific execution process. DeFAI can be seen as a new pathway to realize "intent", providing possibilities for the large-scale application of blockchain in the future.

2. Overview of DeFAI Related Projects

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

1. Griffain: Helps users issue AI Agents, supports token swaps and liquidity provision.

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

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

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

5. Modenetwork: Positioned as an AI x DeFi innovation platform on Ethereum Layer 2.

6. The Hive: Integrates multiple AI models to achieve complex Decentralized Finance operations.

7. Bankr: AI-driven cryptocurrency management tool.

8. HotKeySwap: Provides AI-driven DEX aggregator and cross-chain trading tools.

9. Gekko AI: Focused on automated trading solutions.

10. ASYM: Provides AI-driven DEX aggregator and analysis tools.

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

12. Slate: General AI agent connection infrastructure layer.

13. Cod3x: Provides no-code development tools to build 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 executing trades with natural language commands.

3. The Development Direction of AI Agents

The development of AI Agent faces two main directions: Game and Decentralized Finance.

3.1 Game Direction

Represented by M3 (Metaverse Makers _), but facing challenges from Web2 market competition and long development cycles. There has not yet been a truly explosive AI game.

3.2 Decentralized Finance

DeFAI projects are emerging like mushrooms after rain, with leading market capitalizations including GRIFFAIN, ANON, OLAS, GRIFT, and others. Among them, GRIFFAIN and ANON account for 37.29% of the total market capitalization of DeFAI.

GRIFFAIN is built on Solana, offering features such as wallet generation and fast transactions. Hey Anon adopts a multi-chain model, driven by the well-known founder Daniele, and has gained significant attention.

4. Outlook

The emergence of DeFAI aligns with the characteristics of strong financial scenarios in blockchain. In the future, GameFAI may inherit the concept of the metaverse, achieving autonomy and prosperity in a virtual world aided by AI. The DeFi direction needs to shift from emotional speculation to a focus on actual value, and the development of AI Agents should not rely solely on Meme speculation, but rather provide substantial support for DeFi returns. The final outcome of market competition is worth looking forward to.