AI Integration into DeFi

For years, one of the biggest barriers to user adoption into Decentralized Finance (DeFi) wasn’t the accessibility of the technology. It was the mental prowess required to navigate the complexities of this sector. For instance, unless you are a seasoned investor or finance professional, you would need to spend a fair amount of time studying finance and computing subjects just to understand basic concepts like liquidity pools, managing slippage, staying safe using smart contract, etc. Beginning in 2025 and beyond however, a new narrative is taking place: DeFAI (Decentralized Finance + Artificial Intelligence).

By merging the technologies of blockchain with the AI brain, DeFAI seems to be on the verge of transforming DeFi from a high-stakes playground that only the experts know how to play; into an intuitive, automated, and secure financial ecosystem that is more accessible to the average investor. For entrepreneurs looking to capitalize, this could be the "Gold Rush" moment of the Web3 era.

How AI Can Bridge the User Adoption Gap

The user adoption rate has long been the Achilles' heel of Web3, but AI can finally bridge this gap in three fundamental ways:

1. True Interactive Finance Management:
   The intimidating dashboard of multiple buttons and charts can be replaced by Natural Language Interfaces. Instead of manually routing a trade across three different exchanges, a user can simply issue commands an AI agent e.g. "Find the best way to earn 5% on my stablecoins with low risk," and the agent will handle all the complexities of doing extensive research.
2. Adaptive Risk Management:
   AI-powered machine learning models monitor protocols 24/7, which can help identify scams or potential cyberattacks before they happen. This "Predictive Security" feature gives nominal users a sense of confidence to move their savings on-chain.
3. Hyper-Personalization:
   AI driven DeFi learns a user's specific risk tolerance and financial goals, aiding in adjusting their portfolio as market conditions change. In the old days, the user will need to conduct extensive online searches to get what they want, but an effective AI agent can list viable options and make recommendations within minutes.

Web3 Onboarding You Can Try Now

One of the first steps that you must do to onboard Web3 is to get a 'wallet', meaning a crypto wallet that you download into your computer device as a software, app or browser extension. There is a wide variety of wallets out there but if you are a first timer, you may try the popular Metamask.

Once you have completed the setup of your wallet, you can then load some crypto funds into it e.g. stablecoin. Start with a small amount of funds that you should be prepared to lose completely. Then you may try the following DeFAI projects:

• GRIFFAIN
  This is a DeFAI project that turns complex DeFI actions into simple chatbot conversations and users can even leverage it to create their own AI agents. The project was the talk of the town in Solana hackathon and in a matter of months, it managed to secure a Binance futures listing.
• HIVE AI
  The project was the winner in the Main Track of the Solana AI Hackathon, earning the $60,000 grand prize. Its intuitive design allows users to input simple queries and the network automatically selects the best agents to complete the queries.
• ChainGPT
  Unlike general-purpose models (like standard ChatGPT), ChainGPT is trained on a massive dataset of blockchain-specific information, including smart contract code, on-chain data, and real-time market news. ChainGPT stands out because it doesn't just talk about crypto; and is also capable of performing a variety of technical actions.

There is kind of a race now for startups to be the leader in the market, so as you explore Web3, you would surely come across many competing decentralized apps (dapp). The one that will dominate the race will probably be the dapp that makes it extremely easy and intuitive for the average layman to use.