DeFAI: A New Era of AI-Driven Decentralized Finance

Decentralized Finance ( DeFi ) has always been seen as the beacon of hope for driving the mass adoption of cryptocurrencies, but its actual penetration rate is far below expectations. According to the latest survey, approximately 562 million people globally hold cryptocurrencies, accounting for 6.9% of the total population. However, the daily active users of DeFi are only around 8 million, with a penetration rate of just 1.4%. This data reflects that the DeFi market is still mainly dominated by older users with larger amounts of capital, lacking attraction for new users.

The main reason that makes it difficult for DeFi to attract new users is its high knowledge threshold and poor user experience. Even the most basic token swapping operation requires users to understand how to transfer tokens onto the chain, reserve Gas fees, comprehend the concept of slippage, and the authorization mechanism, among others. These complex steps are far less convenient than the one-click buy and sell operations of centralized exchanges.

However, the introduction of artificial intelligence (AI) may pave new ways for Decentralized Finance to break through this dilemma, thus giving rise to a brand new concept - DeFAI.

DeFAI represents the fusion of DeFi and AI, with the core goal of reducing the barriers to the use of DeFi through AI technology, making decentralized financial services truly accessible to the public. The main values of DeFAI are reflected in the following three aspects:

1. Simplify the operation process: Users only need to input commands in natural language, and the AI can automatically complete complex multi-step operations without the need to manually switch between various interfaces.

2. Automated Trading Strategies: AI can replace professional traders in executing arbitrage and investment strategies, and can even automatically adjust risk parameters, allowing ordinary investors to utilize professional-grade quantitative tools.

3. Comprehensive Data Analysis: AI can simultaneously monitor multidimensional information such as social media volume, influencer comments, on-chain transaction data, and price trends, and automatically execute trades when specific conditions are met, providing operational advice that is more aligned with actual market conditions.

Currently, the DeFAI project is mainly divided into three categories:

1. AI Abstraction Layer: These types of projects simplify complex Decentralized Finance operations into natural language instructions, with AI automatically selecting the optimal path and parameters in the background. Representative projects include Griffain, Heyanon.ai, and Grift.

2. Automated Trading Agents: After user authorization, these AI agents can automatically execute complex multi-step trading strategies. Representative projects include Almanak and Cod3x.

3. Market Analysis Agents: This type of AI focuses on integrating and analyzing vast amounts of on-chain data, social media information, and market trends to provide users with real-time market insights. Representative projects include AIXBT and Kwant.

With the continuous breakthroughs of AI in dialogue interfaces, strategy automation, and data integration, DeFAI is opening up a whole new development path for Decentralized Finance. From simple natural language trading commands to complex automated arbitrage strategies, and to an ecosystem where multiple AI agents work collaboratively, DeFAI is gradually maturing and expanding.

This may herald the arrival of the next real "Decentralized Finance boom." Through DeFAI, more users will be able to enjoy the potential benefits of decentralized finance with a lower threshold. At the same time, professional investors can use these tools to implement more flexible and secure trading strategies. With the deep integration of blockchain technology and AI, the development trend of DeFAI is worth our continuous attention and expectation.