DeFAI is the latest movement in blockchain technology. It combineis elements of decentralized finance (DeFi) and artificial intelligence (AI). DeFAI projects span many use cases, from data collection to full AI powered wallet management.
In this guide, you’ll learn how DeFAI works, how it’s different from DeFi, its benefits, risks, and implications for the future of crypto, along with the projects that are currently garnering the most attention.
DeFAI are projects at the intersection of DeFi and artificial intelligence (AI).
DeFAI could represent a revolutionary approach to decentralized finance as devs are hard at work to make everything about DeFi simpler with the help of AI.
With AI being integrated into everything under the sun, DeFAI was only a matter of time.
DeFAI simplifies DeFi by offloading a lot of the technical processes of DeFi from users onto AI agents, which can even take instructions in natural language. These projects us AI tokens as a way to interact with the protocol.
As DeFAI develops, you’ll be able to give more complex instructions, like specifying a percentage of your holdings to invest, stake, or lend, and even what to do with the yield, with the bot/agents executing these actions on your behalf.
The AI within a DeFAI system is based on large language models (LLMs), the same type used in popular AI software such as ChatGPT.
There are six main workflows for most of these applications within the blockchain world: data collection, model inference, decision-making, hosting and operation, interoperability and wallet management.
Let’s break it down:
DeFAI is widely considered an exciting level-up for DeFi, as it has the potential to make the complex world of decentralized finance much easier for all of us.
While DeFAI comes with an exciting list of pros, it also has some cons to consider.
DeFAI is not just a theoretical concept somewhere in the clouds, as multiple projects are already offering DeFAI services. Here are some of the most prominent players in the field by market cap.
Griffain is a project coordinating a network of AI agents for you to choose from. There are two types: Personal Agents, which you can create and control, and Special Agents, made by Griffain itself that are specialized for certain tasks. You can combine the two types for optimal control.
Right now, Griffain is in early access, available only via invite and even then only to those who purchase an access pass. The team hasn’t yet announced when the project will become publicly available.
Cod3x uses an AI-powered translation layer to simplify your entry into the world of DeFi (or, in this case, DeFAI). Their AI agents will translate and simplify everything for you. This means there’s no need to understand everything to the smallest detail—your wallet will integrate with EVM, Solana, Bitcoin, and Cosmos-based chains.
Aside from translations from technical jargon into normal everyday language, you can take advantage of data visualization, advanced filtering, and another AI agent that you can ask for help at any point. Its social media profiles show the tool is already in use by some investors.
Orbit is a comprehensive DeFAI companion that aims to abstract different on-chain processes, making them super-easy for you. It integrates over 100 blockchains and thousands of different DeFi protocols efficiently. The goal is to have all your operations across them become effortless.
While Orbit is usually considered a DeFAI platform, it’s actually looking to become a comprehensive ecosystem covering pretty much all of your crypto needs.
Neur also calls itself “the Intelligent Copilot for Solana.” Its purpose is to simplify and automate most of your interactions within the Solana ecosystem. Everything is tailored for natural language, so onboarding for complete newcomers becomes a piece of cake.
The tool also keeps track of your portfolio with real-time insights, helps you track and analyze Solana NFT collections, and follows live market trends for you.
Heyanon.ai is an upcoming protocol designed to simplify your interactions with DeFi as a whole, aggregating essential data and getting rid of the fluff. This data comes from the chains themselves, but also from off-chain sources including social media for sentiment analysis.
As is often the case in the crypto space, the token of the project is already live, while the team is still integrating the framework into different chains and protocols.
A lot of the hype around DeFAI is driven by the prediction that it will eventually be the norm for how everyone interacts with DeFi.
With DeFAI prioritizing usability and complex task automation, it’s certainly a meaningful step towards the mass adoption of crypto and DeFi. DeFAI projects are already capable of performing token swaps, with some managing portfolios of everything from Solana meme coins to utility projects.
Currently, DeFAI projects are largely siloed to a single blockchain. However, as chain abstraction protocols emerge, it is easy to envision a world where AI interact across chains, whether through cross-chain swaps or cross-chain bridges. These cross-chain agents would be able to not only interact with similar EVM chains (like ApeChain, BeraChain, Base, etc.), but also interact with Bitcoin tokens or make Solana swaps.
Also, developers will need to address DeFAI-related risks and teach crypto users not to over-rely on DeFAI agents. Regulators might also have a question or two; for example, who is ultimately responsible for the actions of DeFAI agents (especially if they go haywire and lose money)?
All these questions will be addressed in due time. Now, it’s a great time to explore DeFAI projects you’re optimistic about and give them a shot — this is the only way you can tell if the current version of DeFAI is for you.
Connect your wallet to Magic Eden to explore the world of Web3 and DeFAI.
Artificial intelligence is used to automate and simplify complex tasks within DeFi. It gives easy explanations and simple instructions in natural language, while handling the complexities of interacting with DeFi protocols on the other end.
DeFAI represents a novel way of interacting with the world of DeFi, offering ways for complete newcomers to give DeFi a shot. Even if you’re a bonafide degen, it’s also a great way to streamline and automate tasks you previously had to do yourself a million times before, outsourcing your work to an AI bot.
Some existing DeFAI projects include Griffain, Neur and Cod3x. Most of them help simplify interactions with DeFi protocols, while automating tasks such as trading, lending and staking.
In DeFAI, all the same risks apply as in the case of DeFi–the quality of the code, expertise and team play a crucial role in determining the safety of the platform. Also, in DeFAI you should also consider that AI, while already impressive, is still in its relatively early phases of development. This is why it’s important not to rely too much on AI agents and still do your own research.
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