Author: Diego - DeFAI Maxi
Compiled by: TechFlow
Blockchains are not designed to be user-friendly, and interacting with them remains challenging. But looking back in history, the early days of the Internet also encountered similar problems.
Before Google and other search engines, users had to manually type in URLs to find websites, which was extremely complicated and limited the Internet to a small number of technology geeks for a long time.
It was not until the emergence of search engines that the Internet was simplified through natural language interaction and truly entered the lives of the general public.
As the Internet became more popular, Google became one of the most valuable companies in the world.
DeFi’s Early Dilemma
The current decentralized finance (DeFi) is at a stage similar to the early days of the Internet.
The threshold for interacting with DeFi is high - users need an external Web3 wallet and need to manually search for information such as decentralized applications (dApps), income opportunities, and lower loan rates.
This complex and fragmented user experience obviously limits the mass adoption of DeFi.
If we can abstract away these technical complexities through natural language interactions, allowing users to explore DeFi as easily as using a search engine, can this technology truly benefit everyone?
- In the early 1990s, the potential of the Internet was widely recognized, but poor user experience limited its development. The emergence of Google 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 popularization. AI and DeFAI (AI-based DeFi solutions) may become the "Google" in this field and promote the popularization of DeFi.
Abstraction is the key to adoption
Whether it is the Internet revolution or the recent large-scale adoption of AI, their success is inseparable from one core: the "abstraction" of complex technologies through natural language interaction.
- Google simplifies the complexity of the Internet through its search engine.
- ChatGPT lowers the threshold for using AI through natural language generation technology.
The popularization of the Internet and AI did not happen overnight. Before large-scale application, these technologies usually need to go through a long period of backend infrastructure construction. For example, the basic research and development of the Internet began in the 1960s and ushered in large-scale application in the 1990s; while the real breakthrough of AI occurred in the 2010s, and the rise of technologies such as deep learning and large language models promoted this process.
The beginning of DeFi can be traced back to the launch of @ethereum in 2015, and the "DeFi Summer" in 2020 was another important milestone.
After nearly a decade of development, DeFi’s backend technology has become relatively mature, but we still lack a way to abstract these technologies and make them more user-friendly.
DeFAI = The Google of DeFi
Abstraction over natural language is key to driving mass adoption, which is the core goal of DeFAI.
DeFAI's main product is the chat co-pilots tool. Users only need to enter simple instructions, such as "exchange 1000 USDC to ETH on Optimism" to complete the operation.
The traditional DeFi model requires users to visit dApps one by one, manage mnemonics, and evaluate the security of the platform, while this new model simplifies these processes through an abstraction layer.
This abstraction layer is similar to Google, helping users complete tasks and recommending the best options, making DeFi easier to use.
The following are the most advanced DeFAI chat assistance tools
@HeyAnonAI – ChatGPT for crypto
Hey Anon is one of the earliest projects exploring DeFAI and the use of abstraction layers. Their chat assistant will be officially released on Friday, February 7th!
Users can enter their needs through text, and Hey Anon will provide the best solution for them. It is worth mentioning that this product is completely free and open source.
@modenetwork – Interface Layer
Mode is a Layer 2 blockchain focusing on the DeFAI field, dedicated to providing optimized blockchain architecture for AI agents and AI integration.
One of its core products is the chat assistance tool "Interface Layer", which allows users to complete transaction operations on Mode L2 simply through text instructions.
Compared with traditional front-end interfaces, Mode proposes a new way of interaction, which greatly improves the usability of blockchain.
@orbitcryptoai – Co-pilot Everywhere
Just as there were several competitors in the Internet search engine space, there is also competition in the DeFAI space because the potential in this field is huge.
Orbit is leading the way in the technology stack, with its chat assistant already able to interact with over 200 protocols on over 100 chains.
Currently, Orbit’s product is one of the most comprehensive solutions in this field and deserves continued attention.
@Cod3xOrg – Agentic Interface
In my opinion, Cod3x is one of the most exciting projects at the moment. They are not only focused on building chat assistant tools, but also committed to developing comprehensive solutions covering multiple fields.
Whether it’s portfolio management or the creation of AI agents, Cod3x aims 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 demos and get the latest development progress.
@askthehive_ai – A chat assistant focused on trading
The Hive is the last DeFAI chat assistant we analyze today, and it is unique in that it focuses 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 and achieve more efficient market profits.
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 funds and assets.
However, the complexity and risks of DeFi still limit its popularity and it has not yet become a technology available to everyone. The goal of DeFAI is very clear:
- Simplify the usage threshold of DeFi so that ordinary users can easily participate and popularize the technological achievements accumulated over the past 10 years.
- Improve the security of DeFi, build user trust in auxiliary tools through technical means, and protect users from fraud risks.
I believe that with the rapid development of DeFAI, we may be standing at the starting point of a new bull market.
