Currently, various yield strategies in the DeFi ecosystem are emerging, but the complex cross-chain operations and high-frequency decisions make it difficult for ordinary users. To obtain the best yield, one often needs to monitor the market constantly and frequently manually switch assets between multiple protocols. So how can we lower the threshold for user participation and improve yield? If only there were a smart financial assistant in DeFi!

⭐️ Project Introduction

@gizatechxyz has proposed solutions to the above pain points: introducing AI Agents capable of autonomous decision-making execution on-chain. In simple terms, Giza is a blockchain infrastructure project focused on building 'verifiable AI Agents', attempting to enable AI Agents to perform complex operations on behalf of users under a non-custodial premise using technologies such as zero-knowledge proofs, allowing users to efficiently participate in DeFi without constantly monitoring the market.

⭐️ Core Mechanism

To achieve the above vision, Giza has introduced three core architectures in its technical framework:

- Semantic abstraction layer: Enables AI Agents to execute tasks with clear financial concepts, achieving efficient cross-protocol collaboration.

- Agent authorization layer: Based on ERC-4337 smart accounts, achieving non-custodial asset delegation.

- Decentralized execution layer: Responsible for cross-chain, gas optimization, and transaction processing.

The above technologies together ensure that AI understands on-chain instructions and safely executes operations for users. Users only need to authorize the AI Agent and set goals, and the AI can autonomously reason and complete the transaction loop on-chain (from 'intention' directly to 'result').

⭐️ First Practical Case - ARMA

The current core product of Giza is ARMA, focusing on stablecoin yield optimization, which has gone live on the Base network and plans to expand to more Ethereum layer-two ecosystems. Its working principle involves continuously monitoring the interest rate changes of integrated mainstream lending protocols (such as Aave, Morpho, Compound, etc.), comprehensively considering annualized yield (APR), gas costs, and pool liquidity, intelligently scheduling user funds to flow between different platforms to maximize yield.

As one of the few AgentFi products currently in practical use, ARMA has seen its asset management scale steadily grow since its launch a few months ago, with over 30,000 addresses currently managing $160 million in funds through the ARMA agent. In terms of yield, in the USDC lending market on the Base network, ARMA's strategy offers an annualized yield approximately 83% higher than passive deposits in a single protocol. For example, if a user invests $10,000 in stablecoins, they might receive about 10.3% annualized yield through ARMA after a period, while simply holding on platforms like Aave may yield only 3% to 7%.

⭐️ Participation Method 1: Deposit USDC and use ARMA to manage DeFi assets

1. Prepare at least 10 USDC as an initial deposit, and you will also need Base-bridged ETH to pay for the gas fees for the initial deposit.

2. Connect Wallet: Visit the ARMA platform interface (arma.xyz), click 'Connect Wallet', select a Web3 wallet, and authorize the connection.

3. Create a smart account: After signing the permissions, ARMA will automatically create a secure smart account. This account is the basis for ARMA agents to perform automated operations.

4. Initial Deposit: In the operation interface, select 'USDC' as the deposit token and enter an amount of at least 10 USDC. Confirm and approve the transaction to complete the initial deposit.

5. Configure and activate: Set the operation parameters of the agent, such as selecting ARMA to interact with the protocols and preferred operation time range. After confirming the parameters, click 'Activate ARMA' and authorize the relevant transactions. This operation will securely transfer your tokens to the smart account and create a one-time key, authorizing ARMA to automatically manage funds to optimize yield.

⭐️ Participation Method 2: Airdrop opportunities

Giza has issued tokens and completed its first season airdrop plan last month, making it one of the few projects that issued tokens after having a product.

Currently, the second season of Giza's airdrop has started, continuing the community-first distribution principle and expanding the range of token distribution:

- ARMA users remain the focus of rewards: The official has upgraded the ARMA points mechanism and increased the actual yield on deposits.

- The Giza team is developing more types of AI Agents (not limited to yield arbitrage) which will also be included in the points reward system, with early testers providing feedback receiving corresponding rewards.

- Users who actively participate in future testnets and new feature experiences of the Giza protocol (such as completing test tasks, submitting product feedback, etc.) will continue to accumulate points for eligibility in the second season airdrop.

- The second season also introduces developer benefits, where developers creating new AI Agents on the Giza infrastructure can receive token rewards provided by the project.

- In terms of community, the official will clearly expand the volunteer system, granting more roles such as community members and ambassadors pathways to contribute, and corresponding contributors will receive token incentives in the second season.

In summary, the airdrop opportunities in the second season are more diverse, allowing ordinary users, technical developers, and community leaders to participate in their own ways and share in the dividends of Giza's ecological growth.

⭐️ Risk Warning

Although Giza has currently gathered $150 million in TVL, participants should still be aware of the following risks before getting involved.

First, AI Agents need to interact with protocols and bridging services across different chains, and cross-chain bridging is historically a high-risk area with many past attack incidents causing significant financial losses. Ensuring the safety and efficiency of cross-chain operations is a major challenge faced by the project.

Secondly, the AgentFi track is still in its early stages, and most projects' product experiences are still lacking compared to mature DeFi protocols, with high uncertainty. Although Giza's ARMA has already validated the feasibility of the model, the reliability of smart agents' decisions in complex market environments and their performance during black swan events still need time for verification. Moreover, the inherent volatility of lending protocols and smart contract vulnerabilities may still affect the final yield.

⭐️ Future Prospects

With the advancement of Crypto AI, it is believed that AI Agents are expected to become the next evolutionary direction in DeFi, bringing users an unprecedented paradigm shift in interaction. If Giza can continue to validate the safety and effectiveness of its model and successfully expand cross-chain capabilities and new types of AI Agents, it may lead the AgentFi track. Perhaps in the future, every user might have their own on-chain 'AI financial assistant' to help manage assets and seize market opportunities. Of course, we should also remain rational: the ability of AI Agents to avoid inherent market risks and uncertainties still relies on the continuous optimization of models and strategies.

Overall, Giza is pioneering a new path for AI-powered DeFi, and its subsequent development is worth ongoing attention. We welcome everyone to share their thoughts on Giza in the comments! 👏