DeFAI: A New Frontier in the Convergence of DeFi and AI

It feels like various AI chatbots are everywhere now, and when something gradually enters a state of aesthetic fatigue, people often hope to find the next alternative topic.

With the recent surge in popularity of AI chatbots, many are speculating on the next big trend in the crypto space. One possibility that has been gaining attention is the integration of AI with DeFi, a concept often referred to as DeFAI.

DeFAI essentially aims to combine the strengths of both DeFi and AI, with the latter being utilized to simplify and enhance various DeFi operations. Some potential applications of AI in this context include:

- Automating tasks such as yield optimization and trading to maximize profits.

- Reducing human errors and biases in trading strategies through AI-powered decision-making.

- Enhancing the capabilities of existing trading bots (e.g., BananaGun) to optimize trading experiences and introduce more engaging token economics.

Overall, DeFAI encompasses a wide range of DeFi activities, including swaps (token exchanges), farming (yield farming), lending, and borrowing, across multiple platforms.

Now, let's take a look at some specific projects that embody the DeFAI concept:

The first project on our list is Griffain (GRIFFAIN).

Griffain empowers users to perform any on-chain operation using natural language instructions, extending beyond just trading. It can be簡潔地 understood as an ecosystem that hosts a variety of AI agents, each designed to carry out specific tasks. For instance, these agents can be used to copy wallet transactions or even create new tokens (MemeCoins).

According to the latest data from Messari, the total market capitalization of DeFAI projects currently stands at less than $1 billion, with Griffain currently leading the pack in terms of market cap.

As shown in the figure below, the latest market capitalization of GRIFFAIN (the token was officially launched on November 3, 2024) is $368 million, according to Messari.

The second project is Hey Anon (ANON).

Having already deployed on multiple chains, including the recent integration with Sonic, Hey Anon is a protocol that combines AI with DeFi. It features a natural language trading interface, autonomous DeFi agents, and research and communication agents. Essentially, the protocol aims to simplify user interactions, aggregate real-time project data, and enable the execution of complex operations via natural language instructions.

The project is rumored to have received sponsorship from DWFlabs, a well-known market maker in the crypto space, as depicted in the figure below. However, it's worth noting that the protocol's product is still undergoing internal testing and has yet to be officially launched; the public beta is expected to go live at the end of this month (January 2025).

According to the CMC data platform, the current latest market capitalization of ANON (the token was officially launched on December 22, 2024) is $141 million, as shown in the figure below. This surge may be attributed to the news of sponsorship from DWFlabs, coupled with Hey Anon's recent integration of Aave's lending features, which has directly impacted the price, leading to a nearly 8-fold increase last week.

The third project is Mode (MODE).

Mode is an L2 built on the OP Stack, aiming to create a DeFi economic ecosystem that is fully operated by AI agents. Currently, the protocol is capitalizing on the opportunity presented by AI Agents, having already integrated over 100 AI Agents within its ecosystem, offering a range of optimized farming and trading functions.

According to the CMC data platform, the current latest market capitalization of MODE (the token was officially launched on May 7, 2024) is $94 million, as shown in the figure below.

The fourth project is neur (NEUR).

Neur aggregates LLM models (Language Model Large, i.e., large language models, such as the currently most popular LLM model, ChatGPT's GPT-4) and is an open-source program designed specifically for the Solana ecosystem. The product is still in the internal testing phase, allowing users to seamlessly interact with various DeFi protocols, NFTs, and more through a smart interface.

According to the CMC data platform, the current latest market capitalization of NEUR (the token was officially launched on December 23, 2024) is $47 million, as shown in the figure below.

The fifth project is Orbit (GRIFT).

Orbit can be simply described as a DeFi companion program, where its smart agents enable users to interact with multiple protocols across different chains. It currently supports interactions with over 100 blockchains and more than 200 protocols (from EVM to Solana).

This protocol is said to be launched by the SphereOne team, which is a cross-chain crypto payment platform (there is a prominent Orbit redirect on its official homepage).

According to the CMC data platform, the current latest market capitalization of GRIFT (the token was officially launched on December 6, 20