DeFAI: A New Trend Merging Decentralized Finance and AI

1. The Concept and Operation of DeFAI

1.1 Definition of DeFi AI

DeFAI is the fusion of AI and Decentralized Finance. Although the AI-related market has experienced multiple rounds of speculation, from AI computing power to AI Memes, and from different technical architectures to different infrastructures, DeFAI as an emerging concept is becoming the new focus of the market. Currently, DeFAI can be 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 large language models (LLM), which operates through multiple levels of processes and technologies, from data collection to decision execution. Most models follow the six main workflows listed below:

1. Data Collection: The AI Agent collects real-time data 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 prediction.

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

4. Custody and Operation: AI models may be hosted on centralized or decentralized computing networks, while needing 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 to ensure 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 autonomously manage their portfolios through AI agents and various AI platforms, allowing everyone to easily participate in cryptocurrency market trading. This vision is closely related to the concept of "intention." In an "intention" driven scenario, users only need to focus on the trading outcome, without having to specify a specific execution path. DeFAI seems to provide a new way to realize this vision.

In the future, the large-scale application of blockchain may be a combination of AI Agent, Solver, Intent-Centric, and DeFi.

2. Overview of DeFAI Related Projects

Several DeFi-related projects have emerged in the current market, including:

1. Griffain: A platform that supports the issuance of AI Agents and Decentralized Finance solutions.
2. Hey Anon: AI-driven Decentralized Finance protocol that simplifies user interaction.
3. Orbit: A platform that lowers the entry barrier for Decentralized Finance participation.
4. Neur: An open-source full-stack application designed for the Solana ecosystem.
5. Modenetwork: Positioned as the AI x DeFi innovation center on Ethereum Layer 2.
6. The Hive: A Solana DeFi platform that integrates multiple AI models.
7. Bankr: AI-driven cryptocurrency companion.
8. HotKeySwap: Provides AI-driven DEX aggregator and analysis tools.
9. Gekko AI: An AI agent focused on automated trading solutions.
10. ASYM: AI-driven DEX aggregator and analytics tool.
11. Wayfinder Foundation: A full-chain interactive AI tool.
12. Slate: General AI agent connecting the infrastructure layer.
13. Cod3x: A no-code development tool for building automated Decentralized Finance strategies.
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

Currently, the development of AI Agents faces two main directions: gaming and Decentralized Finance.

3.1 Game Direction

M3 (Metaverse Makers _) may be the most promising representative in the gaming direction. However, the main challenge faced by the gaming field is that, even in the resource-rich Web2 market, there has not yet been a truly explosive AI game. In addition, the game development cycle is relatively long, and compared to the Decentralized Finance direction, AI Games may require more market enthusiasm for support.

3.2 Decentralized Finance方向

The projects ranked at the top of the market capitalization in the DeFi sector include GRIFFAIN, ANON, OLAS, and GRIFT, among others. Among them, the combined market capitalization of GRIFFAIN and ANON accounts for 37.29% of the total market capitalization of DeFAI.

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

IV. Conclusion

The emergence of DeFAI aligns with the characteristics of strong financial scenarios in blockchain. Whether it's GameFAI or DeFAI, both demonstrate tremendous market potential. The gaming direction may continue the concept of the metaverse, utilizing AI to manage virtual assets and economic systems. The DeFi direction needs to gradually shift from emotion-driven to actual value-oriented. The value of AI Agents should not rely solely on the issuance of Meme tokens but should be supported by substantial DeFi earnings. The ultimate outcome of market competition is worth looking forward to.