AgentFi: A New Paradigm for Stablecoin Yield

Against the backdrop of increasingly rich stablecoin yield strategies, AgentFi, as a new paradigm integrating AI and DeFi, provides users with an intelligent agent solution that requires no continuous monitoring and is automatically optimized.

AgentFi has essential differences from traditional DeFAI projects. The core feature of AgentFi is that it uses AI Agent as the main execution and decision-making entity, achieving fully automated decision-making and closed-loop execution. In contrast, DeFAI projects typically use AI as an auxiliary tool for data analysis and strategy enhancement.

Currently, there are not many projects in the market that truly focus on the crypto-native DeFi space, such as AgentFi. After screening, we have classified and rated the main AgentFi projects available now:

Stablecoin Yield Optimization:

• ARMA (Giza): ★★★★★
• Coindeed: ★★★★
• Numoen: ★★★

Strategy Portfolio/Liquidity Mining:

• Hal: ★★★★
• Aori: ★★★
• Alongside: ★★

On-chain transaction execution type:

• Metaphor: ★★★★
• Elixir: ★★★
• DeepFi: ★★

AgentFi demonstrates unique advantages in stablecoin yield optimization. Taking Giza's ARMA as an example, it achieves cross-protocol automated yield maximization. The main features of ARMA include:

1. Intelligent strategy scheduling: Real-time analysis of the yield rates of various protocols, automatically executing optimal rebalancing operations.

2. APR Optimization System: Comprehensive consideration of interest rates, costs, and rebalancing timing ensures that each operation brings net profit.

3. Automatic Compound Interest Mechanism: Automatically receive and reinvest incentive tokens, dynamically optimizing the compounding frequency based on position size.

4. Smart coin exchange logic: Supports dual coin operations for USDC and USDT, automatically and efficiently exchanging coins through DEX when necessary.

ARMA adopts a three-layer protection mechanism to ensure fund security:

• Smart Account Security: Based on self-custody smart accounts, users retain control of their assets.
• Access control mechanism: Define the scope of proxy permissions in detail through Session Key.
• Risk management system: Prudently select integrated protocols, with full traceability and auditing throughout the trading process.

In terms of fees, ARMA only charges a 10% success fee on actual earnings, with no deposit or withdrawal fees. Rewards are automatically collected and distributed uniformly, and users can withdraw funds in the original coin type.

ARMA is currently integrated with mainstream lending protocols such as Morpho, Aave, and Fluid. Official data shows that its asset management scale and the number of smart agents continue to grow.

Giza recently announced its complete token economic model. $GIZA, as the native asset of the network, has utility and the ability to capture long-term value. Its design principles include community-first, product-driven, and mechanism restraint.

Main features include:

• Reasonable initial valuation: The initial FDV at TGE is 70 million USD
• Zero Unlock Launch: No token unlock for the team and investors at TGE.
• Clearly define the use of the token: for staking validation, access control, governance, and incentives.
• Dual Staking Mechanism: Node operators and ordinary users can stake to obtain corresponding rights.
• Time-weighted design: The longer the staking time, the higher the rewards and governance weight.
• Gradual Governance: Transitioning from a security committee to complete decentralized autonomy

Giza has also launched the Giza Points System (GPS), which serves as one of the criteria for future incentive distribution. This points system is open to users, developers, and community members, emphasizing long-term contributions.

ARMA is currently in a high subsidy launch period, where users depositing stablecoins can earn a fixed annualized return of 15% for the first 3 months. Users who deposit the first 10 million dollars can also receive 1% of the $GIZA token supply proportionally.

Giza has built a growth flywheel driven by the utility of agents, protocol usage, token value, and ecological participation, aimed at achieving sustainable development. Its governance mechanism adopts a phased evolutionary model to gradually achieve decentralization.

The main logic of investing in Giza/ARMA includes:

1. Paradigm-shifting narrative: at the intersection of AgentFi, ZK, and AI technologies
2. Leading product practicality: Automated agent execution closed loop has been realized. 3: Early mining reward window: Current phase offers higher token subsidies.

Potential risks include:

1. User trust building is still in the early stages.
2. Security challenges brought by system complexity
3. The path for token value release is still unclear.

Overall, AgentFi provides DeFi users with a new smart agent solution that requires no continuous monitoring and offers automatic optimization. Although still in its early stages, it may represent an opportunity for users and builders willing to embrace the new paradigm in the era of agent finance.