DeFAI: AI Empowers Decentralized Finance to Reach the Masses

Decentralized Finance(DeFi) has always been seen as the hope for the widespread application of cryptocurrency, but its penetration rate is far below expectations. According to the latest survey, approximately 562 million people worldwide own cryptocurrency, accounting for 6.9% of the total population. However, the penetration rate of DeFi is only 1.4%, which means that even among cryptocurrency holders, the number of people using DeFi services is quite limited.

The main reason for this phenomenon is the high threshold and complex operations of Decentralized Finance. Even for the most basic token swaps, users need to understand how to transfer funds to the blockchain, reserve gas fees, comprehend the concept of slippage, and authorize operations, among others. These steps are clearly more cumbersome compared to one-click trading on centralized exchanges.

However, the introduction of artificial intelligence (AI) may bring revolutionary changes to Decentralized Finance, giving rise to an emerging concept: DeFAI.

The Core Value of DeFAI

DeFAI aims to reduce the complexity of Decentralized Finance through AI technology, making decentralized financial services more accessible to ordinary users. Its core values are reflected in the following aspects:

1. Lowering the operational threshold: Users can input commands in natural language, and the AI will automatically complete complex multi-step operations.

2. Automated Strategies: AI can execute and adjust professional-level arbitrage and investment strategies, allowing ordinary investors to enjoy the advantages of quantitative trading.

3. Data Integration and Analysis: AI can simultaneously monitor and analyze multidimensional information such as social media discussions, on-chain transaction data, and price trends, providing a more comprehensive market insight.

Main Categories and Representative Projects of DeFAI

1. AI Abstraction Layer

   • Function: Simplify complex Decentralized Finance operations into natural language instructions
   • Representative Project:
     • Griffain: Supports natural language trading, NFT minting, and other operations.
     • Heyanon.ai: provides cross-chain trading, lending, and yield strategy integration.
     • Grift: Focused on cross-chain asset management and automated strategies
     • Buzz: Provides detailed portfolio information and natural language trading capabilities.

2. Automated Trading Agent

   • Function: Execute complex multi-step trading strategies
   • Representative Project:
     • Almanak: Provides institutional-level quantitative trading services with a focus on security.
     • Cod3x: Allows users to create AI trading agents by dragging and dropping components.

3. Market Analysis Agent

   • Function: Integrate and analyze on-chain data, social media dynamics, and other information
   • Representative project:
     • AIXBT: Monitor KOLs and community interactions, providing market sentiment analysis
     • Kwant: Provides investment advice based on technical analysis

Future Outlook

DeFAI is expected to be a key factor driving the next wave of "DeFi Summer". By lowering the entry barrier, DeFAI may attract more ordinary users to experience decentralized finance services, while providing professional investors with more flexible and secure trading strategies. As blockchain and AI technologies continue to merge, the development prospects of DeFAI are worth looking forward to. This innovation could fundamentally change the way users interact with DeFi, making decentralized finance truly mainstream.