Utilizing AI agents in DeFi platforms automates trading and market analysis

From Cointelegraph

March 8, 2025 03:28 AM:

AI agents in decentralized finance (DeFi) are changing the game by automating trading, risk management, and market analysis without human intervention. They adapt to real-time market conditions and execute trades 24/7. Despite their potential, challenges like data quality, regulatory uncertainties, and security risks remain.

AI agents are self-operating programs that make decisions independently using machine learning algorithms. In DeFi, they offer autonomy, transparency, and effectiveness by integrating with smart contracts and DApps on the blockchain.

AI agents in DeFi platforms manage finances, work with decentralized exchanges and lending platforms, and optimize trading strategies. They can be accessed through apps or bots, offering services like automatic trading or rebalancing portfolios for a fee.

AI agents interact with smart contracts, analyze real-time data, and execute transactions automatically based on predefined rules. Market cap for AI agents has surged by 222% to over $15 billion by the end of 2024.

In DeFi, AI agents enhance asset management, trading, risk assessment, market analysis, security, yield farming, staking, and serve as personalized financial assistants. They optimize portfolios, spot trends, detect security threats, and provide financial guidance for users.

To create an AI agent for DeFi portfolio management, define goals, choose data sources, build or select an AI model, develop smart contracts, integrate with DeFi platforms, backtest and optimize the strategy, and launch and monitor the AI agent. Challenges include data reliability, regulatory concerns, and security risks.

Read more at Cointelegraph: How to utilize AI agents in decentralized finance (DeFi) platforms