DeFAI=Google in the DeFi market?

Author: Diego - DeFAI Maxi

Compiled by: TechFlow

The design of blockchain is not centered on user-friendliness, and interacting with it is still challenging. But looking back at history, similar problems were encountered in the early days of the Internet.

Before Google and other search engines appear, users must manually enter the URL to find the website. This operation method is extremely complex, resulting in the Internet being limited to a few technical geeks for a long time.

It was not until the emergence of search engines that simplified the complexity of the Internet through natural language interaction that allowed the Internet to truly enter the public's life.

With the popularity of the Internet, Google has become one of the most valuable companies in the world.

The Early Dilemma of DeFi

The current decentralized finance (DeFi) is in an early stage similar to the Internet.

The interaction threshold with DeFi is high - users need an external Web3 wallet and need to manually search for information such as decentralized applications (dApps), earnings opportunities, and lower loan interest rates.

This complex and decentralized user experience obviously limits the large-scale adoption of DeFi.

If we can abstract these technical complexities through natural language interactions and allow users to simply explore DeFi like using search engines, can this technology truly benefit everyone?

• In the early 1990s, the potential of the internet was widely recognized, but the poor user experience limited its development. The emergence of Google has changed this situation.
• Today, the potential of DeFi and blockchain cannot be ignored, but the lack of user experience is becoming the biggest obstacle to their popularity. AI and DeFAI (DeFi solutions based on AI) may become "Google" in this field, promoting the popularization of DeFi.

Abstraction is the key to popularization

Whether it is the Internet revolution or the recent massive adoption of AI, their success is inseparable from one core: the "abstract" of complex technologies through natural language interaction.

• Google simplifies the complexity of the Internet through search engines.
• ChatGPT lowers the threshold for using AI through natural language generation technology.

The popularity of the Internet and AI is not achieved overnight. Before large-scale application, these technologies usually require a long period of back-end infrastructure construction. For example, the basic research and development of the Internet began in the 1960s and ushered in large-scale applications in the 1990s; while the real breakthrough in AI occurred in the 2010s, and the rise of technologies such as deep learning and large language models promoted this process.

The starting point of DeFi can be traced back to the launch of @ethereum in 2015, and the 2020 "DeFi Summer" is another important milestone.

After nearly a decade of development, DeFi's back-end technology has been relatively mature, but we still lack a way to abstract these technologies to make them more friendly to ordinary users.

DeFAI = Google for DeFi

The realization of abstraction in natural language is the key to driving mass adoption, and this is the core goal of DeFAI.

DeFAI's main product is Chat Co-pilots. Users only need to enter simple instructions, such as "Redeem 1000 USDC to ETH on Optimism" to complete the operation.

The traditional DeFi model requires users to access dApps one by one, manage mnemonics, and evaluate the security of the platform, and this new model simplifies these processes through an abstraction layer.

This abstraction layer is similar to Google, helps users complete tasks and recommends the most preferred items, making DeFi easier to use.

Here are the most advanced DeFAI chat assistance tools

@HeyAnonAI – ChatGPT in the Encryption Realm

Hey Anon is one of the first projects to explore DeFAI and abstraction layer applications. Their chat aids will be officially released on Friday, February 7th!

Users can enter their requirements through text, and Hey Anon will provide the best solution. It is worth mentioning that the product is completely free and open source.

@modenetwork – Interface Layer

Mode is a Layer 2 blockchain focused on the DeFAI field, committed to providing an optimized blockchain architecture for AI agents and AI integration.

One of its core products is the chat assistive tool "Interface Layer", where users can complete transaction operations on Mode L2 only through text instructions.

Compared with traditional front-end interfaces, Mode proposes a new interaction method, which greatly improves the ease of use of blockchain.

@orbitcryptoai – Co-pilot Everywhere

Just as there have been multiple competitors in the Internet search engine field, the DeFAI field is full of competition because of its huge potential.

Orbit is leading the technology stack, and its chat aids are already able to interact with more than 200 protocols on more than 100 chains.

Currently, Orbit's products are one of the most comprehensive solutions in this field and deserve continuous attention.

@Cod3xOrg – Intelligent Interface (Agentic Interface)

Cod3x is one of the most anticipated projects at the moment, in my opinion. They are not only focused on building chat aids, but also working on developing comprehensive solutions covering multiple fields.

Whether it is portfolio management or the creation of AI agents, Cod3x’s goal is to revolutionize the way we interact with smart contracts and blockchains.

Currently, Cod3x is still in closed beta. If you are interested, you can join their Discord community to watch live demonstrations and get the latest development progress.

@askthehive_ai – a chat aid that focuses on transactions

The Hive is the last DeFAI chat aid we analyzed today, and its uniqueness is its focus on the trading field.

It introduces the concept of "Smart Trading", a new trading method based on AI technology.

With The Hive, traders no longer need to analyze complex data such as charts, news or order books, but can rely on auxiliary tools to optimize trading decisions to achieve more efficient market profits.

The future potential of DeFAI

I want to end this post by sharing my optimistic outlook for DeFAI.

DeFi, smart contracts and blockchain are disruptive technologies that will profoundly change the way we manage our funds and assets.

However, the complexity and risk of DeFi still limit its popularity and has not yet become a technology available to everyone. DeFAI's goals are very clear:

• Simplify the threshold for using DeFi, so that ordinary users can easily participate, and popularize the technical achievements accumulated over the past 10 years.
• Improve the security of DeFi, build users' trust in auxiliary tools through technical means, and protect users from the risk of fraud.

I believe that with the rapid development of DeFAI, we may be at the starting point of a new bull market.