lissa

The DeFAI Summer Over the past week, we've witnessed an expected development—a merging of DeFi with AI, which we now call DeFAI. But what exactly is it, and how could it potentially transform the entire financial landscape? Let's delve deeper 🧵 ... — 📌 DeFAI = DeFi + AI Despite serving as the foundation of blockchain liquidity, DeFi has grown less favored because of its intricate nature and subpar user interface. On the other hand, over the last three months, AI-Agent development has rapidly advanced from just responding to tweets to performing analyses, and it's now moving towards executing on-chain actions for users. Thus, it was logical for these two domains to unite, giving rise to DeFAI and makes DeFi more accessible by removing the friction entirely. Moreover, incorporating AI enhances security, boosts profit margins, and offers a host of additional benefits. Imagine engaging with DeFi as effortlessly as chatting with ChatGPT, and earning money even while you sleep as the AI will do it for you 24/7. ... — 📌 DeFAI Categories To simplify, I borrow @0xjeff classification for DeFAI, the first wave of DeFAI can be grouped into three main categories: --- 🔹 DeFi Abstraction Layers The goal of abstraction layers is to reduce complexity by streamlining user interfaces for smoother interactions. Although we already have strong infrastructure from the pre-DeFAI era, the user experience still involves significant friction. --- 🔹 AI-Powered DeFi Apps/Infrastructure This category includes applications or infrastructure that boost functionality and provide intelligent, user-centered solutions. --- 🔹 Automated Trading Agent (ATA) An ATA is an advanced type of trading bot designed to work with more flexibility and intelligence in DeFi. Unlike traditional bots that rely on static, predefined instructions, ATAs make decisions and execute actions beyond their explicit programming, offering more dynamic and independent trading strategies. --- 📌 DeFAI Projects It’s worth noting that most DeFAI protocols can fit into multiple categories. This is a temporary framework since the space is still emerging and likely to evolve significantly (this is also not an exhaustive list). --- 🔹 DeFi Abstraction Layers - @griffaindotcom - @neur_sh - @orbitcryptoai - @slate_ceo - @AIWayfinder - @askthehive_ai - @HeyElsaAI - @v1_agent_ai --- 🔹 AI-Powered DeFi Apps/Infrastructure - @modenetwork - @NEARProtocol - @Cortex_Protocol - @Infinit_Labs - @HieroHQ / @HieroTerminal - @Hive_Intel - @nexonai_io - @boltrade_ai - @HawkFi_ - @UniDexFinance - @DeFAI_DAO / @DeFAI_Agent - @lexiconinfra --- 🔹 Automated Trading Agent (ATA) - @almanak - @Cod3xOrg / @BigTonyXBT - @HeyAnonai / @wagmicom - @getaxal / @Gekko_Agent - @ASYM41b07 - @ProjectPlutus_ --- 🔹 Supporting Infrastructure Advanced and dynamic infrastructure is essential to ensure these DeFAI protocols operate effectively, including: - Trusted Execution Environments (TEEs), e.g., @PhalaNetwork, @MarlinProtocol, @tenprotocol - Privacy-enhancing protocols like zkML, zkTLS, zkFHE, e.g., @nillion, @reclaimprotocol, @OpacityNetwork - AI computing layers, e.g., @ionet, @hyperbolic_labs, @heurist_ai Additional infrastructure protocols can also be integrated to further develop DeFAI’s capabilities. --- 📌 Wrap-Up DeFi is a core part of the blockchain world and has always been an essential part of its ecosystem. AI has also become integrated into blockchain technology, bringing enhanced security, efficiency, and predictive capabilities. The merge between these two technologies is inevitable, promising to unlock new limitless potential. DeFAI, an intriguing fusion of DeFi and AI, currently has a market cap of under $1 billion but conservatively could grow to $10 billion in the coming months, a tenfold increase. Ultimately, DeFAI is still new and will continue to evolve as it develops, paving the way for innovative financial products and services that could redefine how we perceive and utilize digital assets in an increasingly interconnected world.