The Evolution of DeFi Intelligence: From Automated Tools to Agent Networks

In the current cryptocurrency industry, stablecoin payments and Decentralized Finance applications are among the few fields that have been proven to have real demand and long-term value. At the same time, the flourishing Agents are gradually becoming the practical implementation form of the AI industry that faces user interfaces, serving as a key intermediary layer connecting AI capabilities with user needs.

In the field of the integration of Crypto and AI, especially in the direction of AI technology feeding back into Crypto applications, current explorations mainly focus on three typical scenarios:

1. Conversational Interactive Agents: Mainly focused on chat, companionship, and assistant types. Although most are still wrappers of general large models, the low development threshold allows for natural interaction, and combined with token incentives, they have become one of the earliest forms pushed to the market to gain user attention.

2. Information Integration Agent: Focused on the intelligent integration of online and on-chain information. Kaito, AIXBT and others have achieved success in the field of online but off-chain information search integration, while the on-chain data integration direction is still in the exploratory stage with no obvious standout projects yet.

3. Strategy Execution Agent: Focused on stablecoin payments and the execution of DeFi strategies, it extends into two main directions: Agent Payment and DeFAI. This type of Agent is more deeply embedded in on-chain trading and asset management logic, promising to break through speculation bottlenecks and create a smart execution infrastructure with financial efficiency and sustainable returns.

This article will focus on the evolving path of the integration of Decentralized Finance and AI, outlining its development stages from automation to intelligence, and analyzing the infrastructure, scenario space, and key challenges of strategy execution agents.

The Three Phases of DeFi Intelligence: Automation, Copilot, and the Leap to AgentFi

In the evolution of intelligent DeFi, we can divide the system capabilities into three stages: Automation, Intent-Centric Copilot, and AgentFi.

• Automation is more like a rule trigger: it executes fixed tasks based on preset conditions, such as arbitrage, rebalancing, take profit and stop loss, and cannot generate strategies or operate independently.
• Copilot introduces intent recognition and semantic analysis capabilities, allowing users to input natural language, with the system understanding, decomposing, and suggesting execution paths, but ultimately requiring user confirmation; the execution chain is not closed.
• AgentFi represents a complete "perception → reasoning/strategy generation → on-chain execution → evolution" intelligent closed loop, which is an intelligent agent with on-chain autonomous execution and continuous evolution capabilities.

To determine whether a project truly belongs to AgentFi, it is necessary to see if it meets at least three of the following five core criteria:

1. Autonomous perception of on-chain status/market signals (not static inputs, but real-time monitoring)
2. Possess the ability to generate and combine strategies (not preset strategies, but the ability to formulate action plans based on context)
3. Can autonomously execute operations on-chain (no user interaction required, capable of performing complex operations such as swap/lend/stake)
4. Has persistent state and evolutionary capability (Agent has a lifecycle, can run for a long time and self-adjust based on feedback)
5. Equipped with Agent-Native architecture (such as dedicated Agent SDK, hosted execution environment, Agent middleware, etc.)

In other words, automated trading ≠ Copilot, and even more ≠ AgentFi: automated trading is merely a "rule trigger", Copilot can understand user intent and provide operational suggestions, but still relies on human participation; while the real AgentFi is an "intelligent agent with perception, reasoning, and on-chain autonomous execution capabilities" that can complete strategy loops and continuous evolution without human intervention.

Decentralized Finance Scenario Intelligent Adaptability Analysis

In the DeFi ecosystem, the core application scenarios can be roughly divided into asset circulation and exchange types, and yield-generating finance types. We believe that there are significant differences in the adaptability of these two types of scenarios along the path of intelligence.

1. Asset Circulation and Exchange Scenarios

Asset circulation and exchange scenarios are primarily based on atomic interactions, including Swap transactions, cross-chain bridges, and fiat deposits and withdrawals. Their essential characteristics are "intention-driven + single atomic interaction." The trading process does not involve profit strategies, state maintenance, or evolution logic, and is mostly suitable for the lightweight execution path of Intent-Centric Copilot, and does not belong to AgentFi.

Due to its lower engineering threshold and simple interactions, most DeFAI projects on the market are currently at this stage, which does not constitute a closed-loop intelligent AgentFi; however, for a few advanced complex Swap strategies (such as cross-asset arbitrage, perpetual hedge LP, leveraged rebalancing, etc.), the capabilities of AI Agents are actually required, and this is still in the early exploration stage.

2. Asset Income Financial Scenarios

Asset yield financial scenarios have clear yield targets, complex strategy combination spaces, and dynamic state management requirements, which inherently align with AgentFi's "strategy closed loop + autonomous execution" model. Its core features are as follows:

• Quantifiable yield targets (APR / APY) facilitate the Agent in establishing optimization functions;
• The strategy portfolio space is vast, covering multiple assets, multiple terms, multiple platforms, and multiple interaction processes;
• Operations require frequent management and real-time adjustments, suitable for execution and maintenance by on-chain intelligent agents.

Due to multiple factors such as the constraints of yield duration, volatility frequency, complexity of on-chain data, difficulty of cross-protocol integration, and compliance restrictions, the adaptability and engineering feasibility of different yield scenarios in the AgentFi dimension vary significantly. The priority recommendations are as follows:

High Priority Business Landing Direction:

• Lending / Borrowing: Interest rate fluctuations are easy to track with standardized execution logic, suitable for lightweight agents.
• Yield Farming: The pools are dynamic and frequent, with a large strategy combination space and high yield fluctuations. AgentFi can significantly optimize annualized returns and interaction efficiency, but the engineering implementation poses certain challenges;

Long-term exploration layout directions:

• Pendle yield rights trading: The time dimension and yield curve are clear, suitable for Agent management of expiration rotation and inter-pool arbitrage;
• Funding Rate Arbitrage: Theoretical returns are considerable, but challenges in cross-market execution and off-chain interactions need to be addressed, making engineering difficult.
• LRT Dynamic Combination Structure: Static staking is not applicable, and you can try strategies like LRT + LP + Lending for automatic adjustments.
• RWA Multi-Asset Portfolio Management: Difficult to implement in the short term, Agent can provide assistance in portfolio optimization and maturity strategies;

Introduction to Intelligent Projects in DeFi Scenarios

1. Automation Tools ( Automation Infra ): Rule Triggering and Conditional Execution

Gelato is one of the earliest infrastructures for DeFi automation, having previously provided condition-triggered task execution support for protocols like Aave and Reflexer. However, it has now transitioned to being a Rollup as a Service provider. Currently, the main battleground for on-chain automation has also shifted to DeFi asset management platforms (DeFi Saver, Instadapp). These platforms integrate standardized automated execution modules, including Limit Order settings, liquidation protection, automatic rebalancing, DCA, and grid strategies. Furthermore, we see several more complex DeFi automation tool platform projects:

Mimic.fi

Mimic.fi is an on-chain automation platform that serves DeFi developers and project teams, supporting the construction of programmable automation tasks on chains such as Arbitrum, Base, and Optimism. Its core functionality is achieved through "if-then" rule triggers that enable automatic execution of cross-protocol operations, and its architecture is divided into three layers: Planning (task and trigger definition), Execution (intent broadcasting and execution bidding), and Security (triple verification and security control). Currently, it uses an SDK integration method, and the product is still in the early deployment stage.

AFI Protocol

AFI Protocol is an algorithm-driven Agent execution network that supports 24/7 unmanaged automation operations, focusing on solving the issues of execution decentralization, strategy thresholds, and risk response in Decentralized Finance. Its design is aimed at institutions and advanced users, providing orchestratable strategies, permission management, and SDK tools, and has launched the yield-bearing stablecoin afiUSD as its native asset. It is currently in the Sonic Labs beta testing phase and has not yet been publicly launched or made available for retail users.

2. Intent-Centric Copilot: Intent expression and execution suggestions

By the end of 2024, the once-hot DeFAI concept, aside from some speculation dominated by Meme tokens, mostly consists of Intent-Centric Copilot types ------ that is, expressing user intentions through natural language, with the system providing trading suggestions or completing basic on-chain operations. Its core capabilities remain at the stage of "intent recognition + Copilot-style assisted execution", and a complete strategy closed-loop and continuous optimization mechanism have yet to be formed. Many products have obvious shortcomings in semantic understanding, cross-protocol calls, and feedback responses, leading to a generally poor user experience and relatively limited functional boundaries.

HeyElsa

HeyElsa is an AI Copilot positioned in the Web3 scenario, empowering users to perform various on-chain operations including trading, cross-chain bridging, NFT purchasing, stop-loss settings, and token creation through natural language interaction. As a multifunctional conversational crypto assistant, it covers a range from novice users to advanced traders (including the highly active degen community), and currently supports real-time interaction across more than 10 mainstream blockchains. The platform's daily trading volume has reached $1 million, with daily active users maintained between 3,000 and 5,000. The system has integrated yield optimization strategies and automated intent execution modules, initially building the foundational capability framework for the AgentFi application.

Bankr

Bankr is an intent trading assistant that integrates AI, Decentralized Finance, and social scenarios. Users can issue commands in natural language through the X platform or dedicated terminal to complete operations such as Swap, limit orders, cross-chain bridging, token issuance, and NFT minting, supporting Base, Solana, Polygon, and Ethereum mainnet. Bankr has built a complete Intent → Compilation → Execution link, emphasizing a minimalist trading experience and seamless operations within a social environment, and activates the ecosystem through token incentives and profit-sharing mechanisms.

Griffain

Griffain is a multifunctional AI Agent platform deployed on Solana, supporting users to interact with Griffain Copilot through natural language for on-chain operations such as asset queries, swaps, NFT trading, and LP management. The platform incorporates multiple agent modules and encourages community participation in agent creation and sharing. Technically built on the Anchor Framework with components like Jupiter and Tensor, it emphasizes mobile adaptation and frontend composability. Currently, it supports over 10 core agent modules, possessing strong execution capabilities and ecosystem interactivity.

Symphony

Symphony is an on-chain execution infrastructure aimed at AI Agents, building a full-stack system that encompasses intent modeling, intelligent path discovery, RFQ execution, and account abstraction, with the goal of becoming the core module of the DeFi smart execution layer. The platform has launched the conversational assistant Sympson, which has market inquiry and strategy suggestion functions, but on-chain execution has not yet been opened. Symphony provides the core components required for AgentFi and will support multi-Agent collaborative execution and cross-chain operations in the future.

Hey Anon

HeyAnon is a DeFAI platform that combines intent interaction, on-chain execution, and intelligence analysis, supporting multi-chain deployment (Ethereum, Base, Solana, etc.) and cross-chain bridging. Users can complete operations such as Swap, lending, and Staking through natural language and obtain on-chain sentiment and market dynamics analysis. Although the project has high attention due to its founder Sesta, it is currently still in the Copilot phase, and the core strategy and execution intelligence have not yet fully materialized, requiring observation for long-term development.

3. AgentFi Intelligent Agent: Strategy Closed Loop and Autonomous Execution

We believe that AgentFi is a more advanced form of DeFi intelligent leap compared to Intent Copilot. Agents have independent yield strategies and on-chain automatic execution capabilities, which can significantly enhance users' strategy execution efficiency and capital utilization. By 2025, we are delighted to see more and more AgentFi projects have been launched or are in product planning, mainly focusing on lending and liquidity mining. Representative projects include Giza ARMA, Theoriq AlphaSwarm, Almanak, Brahma, and the Olas series.

Giza ARMA

ARMA is a smart agent launched by Giza.