DeFAI: The Fusion of Artificial Intelligence and Decentralized Finance
Since the DeFi summer, Decentralized Finance (DeFi) has become one of the core concepts of the cryptocurrency world. It has long been dedicated to bypassing the traditional financial system and providing an open global financial network ecosystem, enabling individuals to have full control over their digital assets. However, for many, DeFi still feels like a maze of complex user interfaces, countless protocols, and high-risk decision-making processes. Users need to learn how to find the right platforms, set up various wallets, distinguish between L1 and L2 layers, and protect themselves from phishing scams, among other complexities.

DeFAI (Decentralized Finance + Artificial Intelligence) is here to change that.
DeFAI represents the combination of blockchain and artificial intelligence technologies, using advanced AI tools to simplify user experiences and streamline decision-making. It aims to lower the barriers to entry and enable truly autonomous, user-friendly financial interactions. By integrating AI into DeFi, DeFAI addresses the long-standing issues of complexity, usability, and accessibility, significantly improving the user experience and introducing new perspectives and tools for transactions, yield optimization, and asset management.

The core of DeFAI can be summarized into three key areas: the abstraction layer, the agent layer, and the application layer. These areas aim to push DeFi toward a more intelligent and automated future.

Abstraction Layer

The complexity of DeFi has long been the biggest barrier for regular users. Users need to understand different protocols, manage gas fees, set up wallets, and comprehend complex dashboards—challenges that are very difficult for most people. DeFAI, by introducing AI into the abstraction layer, hides all these technical details behind the scenes, allowing ordinary users to interact with DeFi via natural language.

How Does DeFAI Simplify DeFi Interaction?

The abstraction layer of DeFAI uses natural language processing technology to significantly simplify the previously complex operations through an AI-powered interface.
For example, users can replace manually clicking through various interfaces and verifying contract addresses with natural language commands, such as “Swap 3 ETH for USDC” or “Provide liquidity in the ETH-USDC pool.”
Behind the scenes, the AI solution will:

• Parse the user’s request,
• Find the best liquidity source,
• Generate the relevant transaction data,
• Prompt the user to sign with their chosen wallet.

By automating transaction-building and leaving only the final signature to the user, DeFAI greatly enhances the user experience and eliminates much of the friction that prevents people from exploring DeFi. This is a giant leap toward making decentralized finance truly accessible to everyone, enabling users to focus on why they want to transact rather than how they do it.

Representative Project:

GRIFFAIN: Griffain is an early project in this field. Users gain access through Griffain’s Saga Genesis token. Once granted access, users can create their own AI assistants and join Griffain’s private assistant network, allowing them to execute operations considered fundamentally complex, such as task automation (DCA), launching meme coins, and conducting standard airdrops.

Agent Layer

The agent layer is another important innovation of DeFAI, currently focused on trading agents. While the AI-driven interface simplifies user input and generates transactions for manual signature, more advanced AI integration takes it a step further: autonomous DeFi agents. These specialized AI agents enhance the intelligence of crypto trading by leveraging machine learning capabilities. Unlike traditional rule-based trading bots, autonomous trading agents not only execute trades but can also learn and optimize trading strategies in real-time to help users maximize returns.

How Do AI Trading Agents Work?

Autonomous trading agents optimize investment returns by analyzing market data, identifying trends, and executing trades automatically. These specialized AI agents can control a hot wallet, dynamically adjust strategies, adapt to market changes, and even handle complex factors like gas fees and MEV (Maximum Extractable Value) to provide users with the best trading strategies.
Users can issue commands such as: “Bridge my ETH from Mainnet to Base, swap half for USDC, create a Uniswap v2 LP, and send the LP tokens back to my main wallet.”
The DeFi agent will automatically handle the entire workflow:

1. Identify a secure bridging protocol (based on developer-approved tools).
2. Find the most cost-effective swap route.
3. Create a liquidity pool on Uniswap (or another decentralized exchange).
4. Send the resulting LP tokens back to your wallet.

These agents are optimized for both security and cost-effectiveness, representing a huge leap forward for both experienced traders and newcomers.

Representative Projects:

• Almanak: Almanak provides an institutional-grade AI trading agent service. The platform’s initial focus is to allow anyone to create and use AI trading assistants for profit. The platform tests and optimizes strategies through simulators, executing them through an execution engine. The agents in the platform can optimize trading strategies based on real-time market data, taking into account various factors such as gas fees, transaction order, and market volatility.
• Cod3x: Cod3x offers a no-code development platform allowing users to create customized AI trading agents based on their investment preferences or social media trends. Users can access any dataset and utilize APIs and strategy libraries to formulate financial strategies in minutes. This makes AI tools accessible to users without technical backgrounds, enabling them to make informed investment decisions.

Application Layer

AI-driven decentralized applications (DApps) represent an emerging, yet promising area of DeFAI. By integrating AI into decentralized applications, these DApps optimize functionality, enhance user experience, and automate complex tasks. AI can assist users in yield optimization across multiple DeFi protocols, as well as provide intelligent solutions for portfolio management, liquidity farming, and more.

Representative Projects:

• Arma: Arma is an emerging DeFAI project within the Mode Network ecosystem developed by Giza Tech. This project focuses on the automated yield management of USDC assets. The Mode Network AI Agent is one of its core applications. ARMA operates in self-storage mode, allowing users to control assets via smart contracts. Its main function is to continuously monitor yield rates across various lending protocols on Mode Network and automatically execute fund rebalancing at the appropriate times.
• Amplifi: Amplifi Lending Agents, developed by Amplifi.Fi, use AI algorithms to analyze market data and automatically adjust investment strategies to provide optimized return solutions. Core functions include intelligent asset allocation, risk management, and yield optimization, helping users achieve better investment returns in the DeFi market through automated processes.

Conclusion

From the manual UI interactions of Metamask to AI-assisted transaction building, from single-step signing to multi-step autonomous DeFi agents, and from isolated on-chain data to holistic research capabilities, the next paradigm shift in DeFi is unfolding. The DeFi experience is about to become as simple as using TikTok.
Whether you are a seasoned crypto whale or a newcomer, with the power of DeFAI, you can finally harness the full capabilities of DeFi without worrying about making mistakes or missing critical data. Perhaps by 2025, we will witness the DeFAI Summer.