Binance: How does DeFAI reshape the DeFi interactive experience?

Author: Binance

Compilation: Deepflow Techflow

Point summary

• The field of decentralized finance (DeFi) is full of professional terms, complex operational processes and potential scam risks, which make novices feel at a loss and it is particularly difficult to explore this field;
• The emergence of DeFAI simplifies the operation process by combining artificial intelligence (AI) and decentralized finance (DeFi), allowing users to complete DeFi operations through natural language instructions, thereby lowering the threshold for use for novices and senior users;
• In addition, DeFAI can improve security by reducing human errors (such as entering the wrong wallet address) and help users make smarter decisions with real-time data insights;

Entering the world of DeFi is like jumping into deep water without a life jacket. If you've ever been confused by terms like staking, slippage, or gas fees and don't know where to start, then you're not alone. Even technical experts may feel overwhelmed by these unfamiliar terms, complex operating mechanisms, and cumbersome steps.

Although DeFi has great potential, its complexity sets an extremely high barrier for beginners. This is where DeFAI—an innovative tool combining AI and DeFi—comes into play. By simplifying on-chain interactions, DeFAI is expected to reduce these barriers and make DeFi more friendly to everyone.

In this article, we will explore the main challenges of DeFi and how DeFAI can solve these problems.

The challenge of DeFi

Complexity of Terms and Technology

The challenge of DeFi comes first from a large number of terms and complex technical concepts that need to be mastered. Terms like slippage, gas fees and cross-chain bridging are just the tip of the iceberg. To truly participate in DeFi, it is not enough to just understand these terms. It also requires understanding more advanced concepts, such as liquidity pools, yield farming, automated market makers, and generations. Tokenomics (tokenomics) and so on.

These terms are not just buzzwords, but the core foundation of the DeFi ecosystem. For beginners, understanding how liquidity pools support transactions, or how mining earnings reward users through liquidity is like learning an advanced finance course. Without these basic knowledge, the process of participating in DeFi can become extremely complex, which will discourage many newbies.

For example: Suppose you just deposited $1,000 on a cryptocurrency exchange (such as Binance) and plan to invest on a DeFi platform (such as AAVE). It may sound simple, but it is actually full of challenges. First, you need to buy a stablecoin (such as USDC); then you need to transfer it to the correct blockchain network (such as Arbitrum); then you need to pay the Gas fee for each transaction, and finally Deposit funds into AAVE.

This process is not just a few simple steps, but a series of interrelated steps. For example, you need to choose the right cross-chain bridge to ensure that there are enough native tokens in your wallet to pay Gas fees. Each step requires the user to have certain technical knowledge and attention to details.

Even experienced users may find this complexity frustrating, so it is no surprise that newbies feel overwhelmed. DeFi’s steep learning curve is undoubtedly the main obstacle to the entry of average users into this field and also limits its wider popularity.

Susceptibility to scams and vulnerabilities

While the decentralized nature of DeFi is one of its biggest advantages, it also brings a significant problem: no customer service support or regulatory agencies can help solve the problem. When things go wrong, users can only deal with them alone, which gives malicious actors an opportunity to take advantage of.

For example: For example, your transaction fails due to insufficient Gas fees. If you are not sure where the problem lies, you may go online for help. A fraudster may pretend to be an enthusiastic supporter, directing you to the so-called "blockchain repair" website, or inducing you to leak sensitive information like seed phrases (i.e. security phrases used to restore wallets). Eventually, your funds may be stolen unknowingly.

Without security, even a small mistake can have serious consequences. The lack of clear guidance makes DeFi exploration not only complex, but also potential risks, which discourages many people.

How DeFAI cracks complexity

Among the many innovations that AI drives DeFi, Abstract AI is an important tool that significantly lowers the barriers to use by simplifying users’ interactions with the DeFi ecosystem.

The core of abstract AI is to hide complexity. It focuses the user's attention on core functions while encapsulating tedious operational steps in the background for processing. In the use of cryptocurrency, this means that users do not need to understand complex cross-chain bridges or staking operations, but do all operations through an intuitive interface. This ability of AI allows both novices and senior users to easily use DeFi.

Simplify complex processes

One of the main goals of AI is to improve efficiency, solve complex problems, and make originally complex tasks simple. In DeFi, abstract-based AI undertakes tedious operations, and by automating multi-step transaction and staking processes, users can complete operations without having to understand the technical details in depth.

For example, Griffain is an abstract AI platform built on Solana that allows users to complete transactions, mint NFTs, manage wallets, and even quickly snap up tokens based on preset conditions.

Another example is Anon, a powerful abstract AI tool. Anon not only supports users to trade in natural languages, but also supports multiple international languages ​​(such as Chinese, Spanish and Finnish). Additionally, Anon provides seamless cross-chain bridging via LayerZero, while supporting automated triggers based on time and Gas prices. These features allow users to complete complex DeFi operations with minimal effort, making the entire process more efficient and friendly.

Reduce human error

Abstract AI not only simplifies operational processes, but also improves security by reducing the chance of human error. In DeFi, one of the most common mistakes is sending funds to the wrong wallet address. This error may be caused by a mistake in manual input, or an attack by a program called clipper malware that replaces the address in the user's clipboard with a malicious address.

DeFAI effectively avoids such risks through its automated address verification function, ensuring that every transaction can be sent to the correct address accurately. It handles technical details in the background, greatly reducing the possibility of users making mistakes, allowing users to focus on formulating investment strategies without worrying about losses caused by technical mistakes.

Real-time insights to make smarter decisions

In addition to simplifying operations and improving security, abstract AI also helps users make smarter decisions through real-time data analytics. Take Anon as an example. This solution provides users with insights into market trends, token performance and social sentiment by aggregating data from multiple platforms. Anon's agent Gemma is able to integrate on-chain data (such as total locked value and transaction volume) and off-chain data (such as social sentiment analysis on X and Telegram) and convert this information into customized analysis and reminders.

For example, when the transaction volume of a token suddenly surges, or the discussion on a project on social media has increased significantly, Gemma will promptly alert users to help them seize potential investment opportunities or avoid risks. Users can easily gain comprehensive market insights without manually tracking multiple sources of information, making smarter investment decisions.

Summarize

With the rapid development of DeFi, the technical barriers that once made many people feel complex and difficult are gradually being eliminated by innovative tools such as DeFAI. By simplifying operational processes, reducing human errors, and supporting intelligent decision-making based on real-time data, abstract AI is making decentralized finance easier and safer, providing a better user experience for both newbies and senior users .

Being able to easily master complex DeFi systems without deep technical knowledge is an important breakthrough brought by DeFAI to the industry. This not only provides the possibility for more users to participate in DeFi, but also lays the foundation for the popularization and development of the entire ecosystem. Looking ahead, we have reason to expect more innovative AI-based solutions to make DeFi more intuitive and secure, and promote the arrival of a more efficient and user-friendly decentralized financial ecosystem.