DeFAI is the new DeFi: What is DeFAI? Overview of related projects

Author: 0xJeff, head of Steak Studio; Translator: Xiaozou from Golden Finance

DeFi has always been a pillar of Web3. It is DeFi that demonstrates the practicality of blockchain, providing us with the tools needed for instant remittances globally, on-chain asset investments, intermediary-free lending, and cross-DeFi protocol strategies, among others. These are all attainable financial freedoms.

More importantly, DeFi addresses real-world problems. It enables those without traditional bank accounts to access financial services, eliminates intermediaries, and operates around the clock, creating a truly inclusive global financial system.

But let's face an obvious problem together: DeFi** is really complex**.

Setting up a wallet, managing gas fees, and learning to avoid fraud in an environment rife with scams is not very user-friendly. The increasing number of L1, L2, and cross-chain ecosystems only makes things more complicated. For most people, the entry barrier is too high.

It is this complexity that hinders the development of DeFi, but DeFAI is starting to change this situation.

What is DeFAI?

DeFAI (DeFi + AI) makes DeFi accessible. DeFAI leverages artificial intelligence to simplify complex interfaces, eliminating the barriers that make it difficult for ordinary people to participate. Imagine a world where managing your DeFi portfolio is as simple as chatting with ChatGPT.

The first wave of DeFAI projects has now emerged, mainly focusing on three areas:

  • Abstract Layer
  • Autonomous Trading Agent
  • AI-driven dApp

1**, Abstraction Layers **

The purpose of the abstraction layer is to make DeFi more accessible by hiding the complexity of DeFi behind an intuitive interface. The abstraction layer allows users to interact with DeFi protocols using natural language commands without having to use complex dashboards.

Before the advent of artificial intelligence, abstract layers like intent-based architectures simplified trade execution. Platforms like CoWSwap and SYMMIO enable users to achieve optimal pricing in decentralized liquidity pools, addressing the issue of liquidity fragmentation, but they do not solve the core problem: DeFi remains daunting.

Now, artificial intelligence solutions are filling this gap:

  • Griffain is the first token-launching solution, and the product is still in early access, requiring users to be invited for access. Griffain is more versatile, allowing users to perform various basic or complex operations, such as task automation (DCA), launching meme coins, and distributing meme coins according to standard airdrop practices.

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  • Orbit / Grift is the second solution for issuing tokens, aimed at the on-chain DeFi experience. Orbit emphasizes cross-chain functionality, integrating over 200 protocols across more than 117 chains, making it the most integrated among the three solutions.

6ivOERHPAej8yBBAxgAlC0YXCBJzICOsnLLnrnuE.png

  • Neur is the third solution released, but due to its open-source nature, its valuation quickly surpassed that of Orbit. Neur positions itself as a Solana co-pilot designed specifically for the Solana ecosystem. Neur is powered by the SendAI Solana Agent Kit.

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I personally use Slate, which is still in the early stages and hasn't released a token yet, but I like its automation features. I mainly use it to set conditional trades, for example, sell 25% of my position if the market cap of [xxx] reaches 5 million dollars, or buy 5,000 dollars worth of tokens if [xxx] reaches the price of [xxxx].

Wayfinder Foundation is another interesting application worth paying attention to. It is a behemoth being developed by the PRIME / Parallel team.

2**, Autonomous Trading Agent**

Why spend hours digging for alpha, manually executing trades, and trying to optimize your portfolio, instead of letting an agent do it for you? Autonomous trading agents are elevating the concept of trading robots to a new level, transforming them into dynamic partners that can adapt, learn, and make smarter decisions over time.

It is worth mentioning that trading bots are not a new phenomenon. They execute predefined actions based on static programming and have been around for many years. But agents are fundamentally different:

  • They extract information from unstructured, constantly changing environments.
  • They infer data in the context of the target.
  • They will discover patterns over time and learn to exploit those patterns.
  • They can perform actions that their owners have never explicitly programmed.

This niche industry is rapidly developing. Initially, it was just for entertainment purposes, but now it has shifted to practical, profit-driven tools that can help users trade more effectively. However, there is an important challenge here: how do you verify that an "agent" is not just a bot, but even a person operating everything behind the scenes?

This is where DeAI****infrastructure comes into play.

The Role of DeAI in Verification Agents

Key infrastructures such as Trusted Execution Environments (TEE) ensure that agents operate securely and are not tampered with.

For example:

  • TEE: TEE is promoted by Phala Network and provides secure enclaves, with all data being processed confidentially. Phala's experiments—such as Unruggable ICO and Sporedotfun—demonstrate how agents can perform tasks while maintaining data integrity.
  • Transparent Execution**/**Verification Framework: Innovative technologies like zkML (Zero-Knowledge Machine Learning) or opML provide verifiability for inference and computation. Hyperbolic's Proof of Sampling (PoSP) is a notable example. This mechanism combines game theory and sampling to ensure computational accuracy and efficiency in a decentralized environment.

Why is this important?

When autonomous agents start handling large amounts of TVL—imagine $100 million or more in TVL—users will have extremely high security requirements. They need to understand how the agents manage risks, verify the frameworks under which they operate, and ensure that their funds do not eventually flow into any random meme coin.

This field is still in its early stages, but we see some promising projects exploring these verifiable tools. This should be kept in mind as DeFAI develops.

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The top autonomous tradingagents projects I am closely watching

As follows:

(1) Almanak

Almanak provides users with institutional-grade quantitative AI agents, addressing the complexities, fragmentation, and execution challenges of DeFi.

The platform forks the EVM chain, taking into account the unique complexities such as MEV, gas costs, and transaction order, to execute Monte Carlo simulations in real-world environments. It uses TEE (Trusted Execution Environment) to ensure the privacy of strategy execution and the security of alpha insights, and supports non-custodial fund management through the Almanak wallet, allowing for precise permission authorization for agents.

The Almanak infrastructure supports the conception, creation, evaluation, optimization, deployment, and monitoring of financial strategies. The ultimate goal is to enable these agents to learn and adapt over time.

Almanak raised $1 million on LEGION, receiving a large amount of oversubscription. The next steps include a beta release and an agent deployment/initial strategy for beta testers. It will be interesting to observe the performance of these quantitative agents.

**(2)**Cod3x / Big Tony

Cod3x, developed by the Byte Mason team (known for their work with Fantom/SonicLabs), is a DeFAI ecosystem designed to simplify the creation of trading agents. The platform offers a no-code development tool that allows users to create agents by specifying trading strategies, personalities, or even tweet styles.

Users can access any dataset and develop financial strategies within minutes using the API and strategy library. Cod3x integrates the Allora network, utilizing its advanced ML price prediction model to enhance trading strategies.

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Big Tony is the flagship agent for trading based on the Allora model, entering and exiting according to its predictions. Cod3x is working to create a thriving ecosystem of autonomous trading agents.

One noteworthy point is Cod3x's liquidity approach. Unlike the common alt: alt LP structure promoted by Virtuals, Cod3x employs a stablecoin: alt LP structure driven by Cod3x's own CDP (Collateralized Debt Position) cdxUSD.

Compared to the volatility of the alt:alt trading pairs, this adds more stability and confidence for LPs (liquidity providers) when providing liquidity.

Cod3x also has its own DeFi primitives, such as liquidity AMOs and Mini Pools, which deepen liquidity and add more functionality/ DeFi building blocks for agents in its ecosystem.

Note:

  • Axal / Gekko AI - Axal's auto-tuning product, which handles complex multi-step crypto strategies via agents. Gekko integrates auto-tuning capabilities. I look forward to seeing how Gekko's integration with auto-tuning performs data-driven trading.

  • ASYM——ASYM is described by many as the "cheat code" for meme coin trading, capable of analyzing large datasets from blockchain and social media to predict meme coin trends. ASYM has consistently outperformed the market. ASYM has demonstrated a return rate of 3-4 times through backtesting. I am very much looking forward to seeing its performance in live trading.

  • Project Plutus——I really like the name PPCOIN.

3**,AI-driven****dApp**

AI-driven dApps are a promising emerging field in the DeFAI domain. They are fully mature decentralized applications that integrate AI or AI agents to enhance functionality, automation, and user experience. Although this field is still in its early stages, some ecosystems and projects have started to stand out.

One of the most active ecosystems in this field is the Mode network, which is an L2 ecosystem aimed at attracting high-tech AI x DeFi developers. Several teams dedicated to cutting-edge AI use cases are already present on Mode:

  • ARMA**:** Developed by Giza, a self-stablecoin farming strategy tailored to user preferences.
  • Modius**: **Autonomous agent farming Balancer LP, supported by Olas.
  • Amplifi Lending Agent: Developed by Amplifi, these agents integrate with Ironclad to automatically trade assets, loan on Ironclad, and maximize returns through automatic rebalancing.

The core of the ecosystem is the native token MODE. Token holders can stake their MODE tokens to obtain veMODE, which provides airdrops from AI agents, access to project whitelists, and additional ecosystem benefits. Mode positions itself as an innovation hub for AI x DeFi, and its influence is expected to grow significantly by 2025.

In addition, Daniele published the DeFAI theory through HeyAnon, causing a sensation.

He announced that HeyAnon is working on the following:

  • As an abstraction layer for DeFi interfaces
  • DeFi agent for autonomous trading execution
  • Research and communication agents used for acquiring, filtering, and interpreting relevant data

The market reacted enthusiastically, with the market value of the ANON token soaring from $10 million to $130 million. Daniele seems to have brought back the excitement of TIME Wonderland, but this time with a stronger foundation and a clearer vision (hopefully).

YNZKqLFnmZMnk6D2XsyaYDhEKQzAgbNtaCopiCnF.png

In addition to these two ecosystems, many teams are building their own AI dApps. Once the main ecosystems around these dApps are formed, I will share more content in the future.

Conclusion

DeFAI is changing DeFi to make it smarter, simpler, and more accessible.

With the abstraction layer simplifying user interactions, autonomous trading agents managing portfolios, and AI-driven dApp optimization use cases, we are witnessing the dawn of a new era.

Not a reprise of DeFAI Summer 2020, but the DeFAI Summer of 2025!

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GateUser-c0244f42vip
· 12h ago
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