DeFAI: The Integration of Artificial Intelligence and Decentralized Finance

1. Overview of DeFAI

1.1 Definition of DeFAI

DeFAI is the combination of artificial intelligence ( AI ) and Decentralized Finance ( DeFi ). Although AI-related concepts have undergone multiple rounds of hype, from AI computing power to AI Meme, from different technological architectures to various infrastructures, DeFAI as an emerging concept is attracting market attention. Currently, DeFAI can be mainly divided into three categories: AI abstraction, autonomous DeFi agents, and market analysis and prediction.

1.2 The operating 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 complex links:

1. Data Collection: Obtain 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 data and inference results, decisions are made through the collaboration of optimization engines and multi-agent systems.

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 DeFi 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 DeFAI and the Concept of "Intention"

The vision of DeFAI is to enable users to manage their portfolios autonomously and simplify participation in the cryptocurrency market through AI agents and various AI platforms. This vision aligns closely with the "intention" driven trading concept. In an "intention" driven scenario, users only need to focus on the trading outcome without having to specify the exact execution path. DeFAI can be seen as a new way to realize "intention", potentially integrating with AI Agents, solvers, and intention-centric concepts in the future, promoting the large-scale implementation of blockchain applications.

2. Overview of DeFAI Related Projects

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

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

3. Development Directions of AI Agents

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

3.1 Game Direction

Projects represented by M3 ( Metaverse Makers ) showcase the potential in the gaming direction. However, even in the Web2 market, truly explosive AI games have yet to emerge. The long development cycles of games may also constrain the rapid development in this direction.

3.2 Decentralized Finance方向

The DeFAI projects with the highest market capitalization include GRIFFAIN, ANON, OLAS, and GRIFT, among others. Among them, GRIFFAIN and ANON together account for 37.29% of the total market capitalization of DeFAI. GRIFFAIN is built on Solana and offers features such as wallet generation and fast trading. Hey Anon adopts a multi-chain model, supporting multiple public chains, and the influence of its founder Daniele has brought significant attention to the project.

Four, Conclusion

The emergence of DeFAI reflects the natural fit between blockchain technology and financial scenarios. Whether it's GameFAI or DeFAI, both showcase immense 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 transition from early emotional speculation to actual value orientation. The long-term development of AI Agents should not solely rely on the issuance of Meme tokens, but rather explore deeper DeFi application scenarios. The ultimate outcome of market competition will depend on whether each project can provide genuine value and innovation.