The Rise of AI Agents in DeFi: Opportunities and Concerns
The "Dark Forest" of DeFi
In the world of decentralized finance (DeFi), transactions are said to enter the "dark forest" when they are submitted to the mempool and are visible to anyone. This has led to the creation of MEV (miner extractable value) bots, which operate with pre-set rules and little flexibility. These bots have already made millions of dollars from Ethereum transactions, and their adoption is expected to grow exponentially in the era of artificial intelligence (AI) and AI agents.
The Roles of AI Agents in DeFi
As the industry evaluates the potential of AI agents, we can identify at least three precise functions or roles in DeFi:
- Reducing the Learning Curve: Just as ChatGPT revolutionized the AI industry, AI agents could reduce the learning curve, bringing DeFi closer to the masses. Industry professionals will be the first to benefit from these new tools.
- MEV Agents and Market Makers: AI agents will soon be used for MEV and agent market making, which will further increase their potential to drive on-chain volume.
- Independent Decision-Making: In the distant future, AI agents are expected to evolve to a level where they possess independent goals and decision-making abilities without human intervention.
The Hallucination Problem
One known safety risk introduced by AI agents is hallucinations, where large language models (LLMs) offer nonsense or wrong answers. Imagine an AI performing a simple swap in a DeFi but hallucinates a huge commission or contract address, resulting in a considerable loss to the user.
Strategies for DeFAI Builders
To combat hallucinations, DeFAI builders should consider the following strategies:
- Build Robust Rulesets: Establish a long and precise set of rules for the operation of the agents to minimize the risk of errors.
- Run Exhaustive Stress Tests: Test the agents against infinite possible interactions to understand their capabilities and limitations.
- Implement Guardrail Systems: Use real-time verification systems with dynamic evaluation of each action before execution to prevent errors.
Conclusion
The potential of AI agents in DeFi is vast, but it is crucial to address the challenges they pose. By understanding the current capabilities of LLMs and addressing the hallucination problem, we can ensure the secure development of DeFAI.
FAQs
Q: What is the "dark forest" in DeFi?
A: The "dark forest" refers to the mempool, where transactions are visible to anyone and can be exploited by MEV bots.
Q: What is MEV?
A: MEV stands for miner extractable value, which refers to the ability to extract value from transactions on the blockchain.
Q: What is the role of AI agents in DeFi?
A: AI agents can reduce the learning curve, drive on-chain volume, and potentially make independent decisions without human intervention.
Q: What is the hallucination problem in AI agents?
A: Hallucinations occur when LLMs offer nonsense or wrong answers, which can result in errors or losses in DeFi transactions.
Q: How can DeFAI builders address the hallucination problem?
A: DeFAI builders can build robust rulesets, run exhaustive stress tests, and implement guardrail systems to prevent errors and ensure secure development.
