With the rapid development of Artificial Intelligence (AI), its combination with DeFi is quietly giving rise to a brand-new track: DeFAI. This innovative track not only will reshape the way users interact with DeFi, but also has the potential to become a key driver in driving mass adoption of Web3. This article will take you deep into the current state of DeFAI development and several representative innovative projects in the Arbitrum ecosystem.
DeFAI is the product of the integration of AI technology and DeFi protocols. It focuses on integrating AI capabilities into DeFi applications, and this integration can be applied to areas such as financial management, decision-making, and user interaction.
Currently, the DeFi field provides decentralized financial platforms for users to manage their assets without the involvement of third parties. However, the complexity of DeFi platforms has become a major obstacle to mass adoption.
Many users find it difficult to understand the blockchain-specific concepts, such as smart contract interactions, and do not know how to perform basic token swaps across multiple chains and platforms. Users are vulnerable to scams and often cannot accurately grasp how to ensure the security of their funds, leading to a relatively stagnant adoption rate in the DeFi field. This is also why centralized exchanges have become the first choice for many users to participate in cryptocurrency trading, which to some extent goes against the original intention of blockchain.
Introducing AI into DeFi can simplify the interaction between users and DeFi. Through AI systems, users can have a smoother experience interacting with DeFi protocols. Additionally, AI can help identify potential scams and suspicious transactions, making DeFi a safer space for users.
According to raz.dmt, in the near future, the integration of AI and DeFi will make buying cryptocurrencies as convenient as ordering takeout at home. Users not only won't need to switch between multiple platforms, but AI can also enable users to directly purchase tokens on a website, help them automatically identify the correct chain and token contract, and ensure transactions are executed securely.
Now, let's talk about some DeFAI projects in the Arbitrum ecosystem:
AiSweat.Shop
AiSweat.Shop is a platform that focuses on combining AI agents with DeFi functionalities. Unlike simply providing AI agents with basic Web3 wallets, AiSweat.Shop takes a different approach, using AI to enhance existing DeFi products. This allows users to leverage AI for advanced operations such as liquidity mining, liquidity management, and automated trading.
For AiSweat.Shop, the decision to build on Arbitrum was a well-considered one. Although the team was initially attracted by the active AI liquidity on Solana or Base, they ultimately chose Arbitrum, recognizing its thriving DeFi ecosystem and strong early adopter community.
Kate W, a core contributor to AiSweat.Shop, said: "Deploying on Arbitrum was an obvious choice because it is a hub of DeFi innovation. The community is active, and leading projects like GMX continue to thrive. Bringing our AI-driven DeFi solutions to such a vibrant ecosystem was a very clear decision."
AiSweat.Shop is collaborating with leading DeFi projects on Arbitrum, including Camelot and GMX, to explore how AI can drive innovation in areas like liquidity management and yield optimization. Their goal is to provide user-friendly tools and interfaces that allow individuals to achieve maximum returns with minimal effort, showcasing the transformative potential of AI in DeFi.
Kudai
GBC was founded in 2021, initially launching as an NFT collection that gathered the GMX community. The company was co-founded by three like-minded old friends, each with complementary expertise: XM as the CEO, feed them responsible for product and strategy, and Vee as the Chief Growth Officer. The team has previously participated in several well-known Web3 projects, including Pudgy Penguins, Vertex Protocol, GMX, and Juice Finance.
Kudai and Kaigen are GBC's two flagship products. Kudai is an autonomous AI agent aimed at optimizing capital in real-time. It has gone through different development stages, from being a learner to an investor, trader, and now a re-allocator. Currently, Kudai is progressing to the next stage, evolving from passive investment to a more active market participant with enhanced strategies and higher autonomy.
Following the success of Kudai, the GBC team established Kaigen, a democratized AI-driven DeFi investment management platform. Kaigen allows users to create personalized AI agents that can continuously execute, optimize, and adjust investment strategies directly from the user's wallet, without the need for intermediaries.
Vee said, "AI is not only transforming DeFi, but it is also revolutionizing the way we interact with the entire web. We are witnessing a shift where intelligent agents are becoming intermediaries capable of analyzing, optimizing, and automating complex processes, making systems more efficient and user-friendly."
GBC chose to build on Arbitrum due to its mature DeFi ecosystem, particularly the synergies with GMX. Vee said that Arbitrum's technical capabilities, including fast and cost-effective transactions, robust security, and compatibility with core DeFi infrastructure, all influenced this decision. Arbitrum's support through initiatives like the Trailblazer program further validated this choice, aligning with GBC's vision for AI-enhanced DeFi.
Aikaverse
Aikaverse, developed by the Fanko team, allows users to buy and sell cryptocurrencies directly on X, without the need for a wallet or website. Users can seamlessly complete transactions through AI agents.
"Integrating AI technology is the best way to simplify the first-time cryptocurrency experience for people. By reducing complex DeFi processes to a few intuitive steps, AI has the potential to make decentralized finance accessible to everyone, not just crypto-native users," said Raz.dmt.
Raz.dmt stated that the team chose to build on Arbitrum due to its low fees, high transaction speeds, and developer-friendly environment. Most importantly, the team believes that Arbitrum is the home of DeFi innovation, and being part of this ecosystem will allow Aimecswap to integrate AI into DeFi at the most critical points.
The Aikaverse team is preparing several exciting new developments, including the launch of a cryptocurrency trading AI agent based on Telegram, and the preparation for the public offering of their token, PTE.
