DeFAI: Unlocking New Possibilities in Decentralized Finance

Decentralized Finance (DeFi) has always been seen as a key driver for the mass adoption of cryptocurrency, but its actual adoption rate is disappointing. Approximately 562 million people globally own cryptocurrency, accounting for 6.9% of the total population. However, the usage rate of DeFi is only around 1.4%, indicating that it mainly serves older users with larger amounts of capital and lacks appeal to new users.

The main reason DeFi struggles to attract new users is its high knowledge barrier and poor user experience. Even the most basic token swap operation requires users to understand how to transfer tokens to the blockchain, allocate gas fees, and comprehend the concept of slippage. This series of complex operations is far less convenient than the one-click buy and sell offered by centralized exchanges.

However, the introduction of Artificial Intelligence (AI) may break this dilemma of DeFi, giving rise to a brand new concept: DeFAI.

DeFAI is a combination of DeFi and AI, aimed at bringing decentralized finance truly to the public. Its core value lies in using AI to reduce the complexity of DeFi, broaden application scenarios, and enable more people to easily and safely use blockchain financial services.

The main advantages of DeFAI include:

1. Lowering the operational threshold: Users only need to input natural language commands, and the AI can complete complex multi-step operations.

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

3. Data Integration Analysis: AI can monitor social media volume, influencer comments, on-chain transaction data, and price trends simultaneously, and automatically execute trades when conditions are met.

The DeFAI project is mainly divided into three categories:

1. AI abstraction layer: Simplifying complex DeFi operations into intuitive natural language instructions.

2. Automated Trading Agent: Automatically executes complex multi-step trading strategies after user authorization.

3. Market Analysis Agent: Integrates and analyzes large amounts of on-chain data, social media information, etc., to provide users with market insights.

With breakthroughs in AI for dialogue interfaces, strategy automation, and data integration, DeFAI has opened a new path for Decentralized Finance. From simple natural language trading to advanced automated arbitrage, and to a multi-agent collaborative ecosystem, DeFAI is driving DeFi towards maturity.

This could trigger the next wave of a real "DeFi summer", allowing more users to enjoy the potential benefits of Decentralized Finance with a low barrier to entry. At the same time, professional investors can use this opportunity for more flexible and secure trading strategies. With the deep integration of blockchain and AI, the wave of DeFAI is expanding, which is worth our continued attention and expectation.