DeFAI: A New Chapter in AI-Driven Decentralized Finance

Decentralized Finance (DeFi) has long been seen as the hope for large-scale application in the cryptocurrency space, but its adoption rate is far below expectations. According to a recent survey, approximately 562 million people globally hold cryptocurrencies, accounting for 6.9% of the total population. However, the actual usage rate of DeFi is only about 1.4% of cryptocurrency holders, a figure that reflects the challenges DeFi faces in attracting new users.

Nevertheless, DeFi has shown rapid growth in terms of trading volume share, with the trading volume of decentralized exchanges (DEX) now reaching 16.7% of centralized exchanges (CEX), a historic high. This phenomenon indicates that the DeFi market is mainly dominated by older users with larger amounts of capital, and has insufficient appeal for new users.

The main reason why DeFi struggles to attract new users lies in its high knowledge barrier and poor user experience. Taking the most basic token exchange operation as an example, users need to understand how to transfer tokens to the blockchain, reserve enough gas fees, comprehend the concept of slippage, and the authorization mechanism, among other complex operations, which are far less convenient than the one-click trading of centralized exchanges.

Faced with this dilemma, the introduction of Artificial Intelligence (AI) may bring breakthrough developments to Decentralized Finance, giving rise to a new concept - DeFAI (DeFi + AI).

The Core Value of DeFAI

DeFAI aims to reduce the complexity of DeFi through AI technology, making decentralized finance services more accessible. Its core values include:

1. Lower operational threshold: Users can complete complex DeFi operations through natural language commands without the need to manually switch between various interfaces.

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

3. Data Integration and Analysis: AI can simultaneously monitor various information such as social media discussions, influencer comments, on-chain transaction data, and price trends, and automatically execute trades at the appropriate time.

Main Categories and Representative Projects of DeFAI

1. AI Abstraction Layer: These types of projects simplify complex DeFi operations into natural language instructions, enabling users to easily perform cross-chain transactions, staking, and other operations. Representative projects include Griffain, which operates within the Solana ecosystem, and Grift, which focuses on cross-chain functionality.

2. Automated Trading Agent: These AI agents can automatically execute complex trading strategies after user authorization. Representative projects like Almanak focus on institutional-level quantitative trading and security, while Cod3x offers a no-code strategy development environment.

3. Market Analysis Agent: This type of AI integrates and analyzes a large amount of on-chain data, social media information, etc., to provide users with market insights. Projects like AIXBT and Kwant can track the dynamics of opinion leaders, providing real-time market analysis and investment advice.

Outlook

DeFAI has opened a new path for Decentralized Finance, aiming to overcome the limitations of traditional DeFi. From simple natural language trading instructions to complex automated arbitrage strategies, and to an ecosystem where multiple AI agents work in collaboration, DeFAI is continuously maturing and evolving.

This innovation may trigger the next wave of "DeFi boom," allowing more users to participate in Decentralized Finance with a low entry barrier and enjoy its potential benefits. At the same time, professional investors can also leverage DeFAI to implement more flexible and secure trading strategies.

With the deep integration of blockchain technology and artificial intelligence, the development momentum of DeFAI is accelerating. The innovations in this field are worth our continued attention, as they may become a key force in promoting the popularization of cryptocurrencies and Decentralized Finance.