Challenges

Here are five key pain points that highlight the need for this transformation:

Human-Centric Legacy Systems:

Current DeFi protocols are designed around human users, with interfaces, decision-making processes, and risk models that fail to accommodate the speed, precision, and capabilities of AI agents.

They lack technological frameworks to seamlessly integrate advanced AI capabilities and facilitate autonomous, high-frequency transactions.

This infrastructure gap limits the potential for AI agents to operate efficiently and realize their full potential.

Underutilization of AI's Agentic Potential:

While some DeFi projects incorporate AI, they often underutilize its true agentic potential. Many systems use AI for basic analytics or optimization, but fail to leverage AI agents for fully autonomous financial operations, without the need for human intervention.

This underutilization means DeFi is missing out on the transformative power of AI agents to drive unprecedented levels of efficiency, speed, and innovation in financial markets.

Inadequate AI-Native Infrastructure:

Existing DeFi protocols lack the fundamental infrastructure needed for AI agents to operate at their full potential.

Critical components such as on-chain AI model deployment, agent-to-agent communication infrastructure, and AI-native governance mechanisms are missing, limiting the possibility of truly autonomous financial systems.

Barriers to Autonomous Innovation:

Existing frameworks do not empower AI agents to create new asset classes or financial instruments tailored to market demands.

Without this capability, the evolution of decentralized finance will stagnate as it fails to meet the demands of our future economy.

Outdated UX in the era of AI:

Users in the DeFi space often encounter high barriers of entry in optimizing capital efficiency and participation due to the technical nature of DeFi and lack of user-friendly UI.

Many platforms do not provide the necessary simple UX, tools and mechanisms to effectively manage and allocate capital.

This user-unfriendly setup can discourage user engagement and limit the overall effectiveness of DeFi protocols, as participants struggle to find the best ways to utilize their assets in a rapidly evolving market.