DEFI is one of the most exciting innovations in crypto, transforming the way people borrow, lend, invest and interact with financial services.
However, it is also incredibly complex, with thousands of individual protocols dispersed in hundreds of blockchains, and each of them is technically difficult to interact. It is a cognitive overload which, for many, makes it impossible to access.
The inaccessibility of DEFI comes from its ridiculously complex user interfaces and its endless technical jargon which passes well over the head of your average Joe. It is also characterized by a complex work flow, with the need to sign approvals before processing transactions.
Then there are security problems, which terrify many users to interact with DEFI. In addition, the capital invested in DEFI is fragmented on many networks, introducing substantial navigation challenges and the need to “reject” the assets from one chain to another.
Enter defai
It is a steep learning curve, but it is not impossible to overcome. With the emergence of Defai, or the intersection of DEFI and AI, new tools are available that will transform the way people interact with these protocols.
They hold the promise to simplify the DEFI landscape and make it more accessible to new users, eliminating the most complex aspects of activities such as jalitude, trading, loans, borrowing and yield of agriculture so that everyone can get involved.
The term “defai” was first invented by the developer of Crypto Danielle Sestagalli, and it refers to the integration of AI algorithms with DEFI protocols in order to simplify complex processes and improve the user experience. In this way, he acts as a kind of concierge for newcomers, guiding them through the different opportunities he offers.
An example of Defai is automated trading, where agents fueled by AI can act on behalf of users, analyzing market conditions in real time to try to make profitable transactions without any user’s entry. They can also help risk management by identifying potential risks in DEFI and then suggesting possible strategies to reduce these risks.
They can also improve the optimization of return thanks to the automated allocation of assets, maximizing investor yields. Finally, they can also help protect users from fraud by detecting suspicious or malicious activity. In summary, they can help create a more robust, friendly and secure landscape.
Smart trading
The most obvious way that Defai can help is by automating trading. Imagine an AI agent who can collect large amounts of data, including the prices of chain assets and its movements, its liquidity measures and even the feeling of social media, to clarify its decision -making processes. This advanced AI model will then group this data in real time to try to predict trends and identify profitable negotiation opportunities.
Then, once authorized, it can indeed execute transactions on behalf of the users, rebalance their portfolios and switch between different performance strategies according to market conditions without requiring user surveillance. To do this, it must also be able to manage transparent transverse interactions while ensuring that its user’s assets remain secure in a non -guardian wallet.
If it seems intriguing, you will be even more impressed to learn that it is not only a distant vision. Giza has built the underlying infrastructure for the creation of trading robots that can do everything above, by analyzing several protocols both in order to execute complex yield strategies and adapt to changing conditions.
Its intelligent account infrastructure is a basis for building a new generation of highly sophisticated autonomous financial agents like ARMA which can operate through the entire DEFI ecosystem, governed by self-paid railings to protect their user’s funds.
Giza’s Defai agents use a trio of innovations, including specially designed intelligent algorithms which are trained to understand the nuances of the Defi market and its current conditions to make intelligent investment decisions in real time.
They also integrate dynamic position management capacities which allow them to respond to evolution markets, rebalances user portfolios to avoid exposure to any new risk that emerges. In addition, they include automated guarantees with a verifiable execution to ensure complete transparency.
By combining these innovations, Giza can overcome the cognitive barrier which stems from having so many different protocols and assets to watch in real time. His agents Defai can continually monitor each protocol and each asset on each 24/7 blockchain, and execute professions with incredible precision, allowing them to engage in sophisticated strategies which would be impossible for any human trader.
Automated compound
Defai also opens the door to more effective yield agriculture strategies by allowing investors to rinse and repeat and generate the highest possible yields of composition.
One of the best aspects of DEFI is the composition, which refers to an investment strategy where users will invest in liquidity pools and will win reward tokens to do this, before reinvesting these awards in the liquidity pool to maximize their yields.
For example, REF Finance is a decentralized exchange platform on a nearby protocol which allows people to deposit funds in liquidity pools and receive LP tokens. Users can take these LP tokens and reinvest them via Ref Farms, which provides a different type of reception token.
There is no need to stop there because users can take these new reception tokens and reinvest them in another liquidity pool to earn even more rewards from a different type. Each new reinvestment, they can gain compound interests, and it is possible to repeat it several times.
Users can of course do it manually, but Defai yield optimSators such as financing our aspects and Vesper are a much more effective option, allowing them to rinse and repeat the process of hundreds of times in a single day to obtain the most optimal yields.
Defying the complexity of deffi
Defai breaks down the obstacles of DEFI to the entrance in many ways. By eliminating the need for users to sit and study complex graphics, it can create intelligent investment strategies adapted to each individual according to their unique behavior and preferences.
Investors can use a cat -based tool to interact with an automated portfolio manager, which will balance their assets according to their simple orders. Defai also supports trading based on objectives, performing the most appropriate strategy in accordance with the user’s financial objectives.
As Defai matures, it will make it more accessible and user -friendly and will increase the efficiency of users, paving the way for many more people to get involved in the next generation of finance.
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