AgentFi: A New Paradigm for Stablecoin Yield

Against the backdrop of increasingly rich stablecoin yield strategies and limited user attention and execution efficiency, AgentFi, as the next paradigm of “AI + DeFi” integration, provides DeFi users with an intelligent agent solution that requires no monitoring and automatically optimizes.

1. Classification and Comparison of DeFAI and AgentFi

Although DeFAI and AgentFi are both in the “AI + DeFi” crossover field, their technical essence, product forms, and paradigm missions are completely different. AgentFi distinguishes itself from traditional DeFi or generalized DeFAI projects, with its core feature being: the AI Agent is the primary executor and decision-making carrier, fully automated decision-making and closed-loop execution, rather than simply using AI as a decision-making auxiliary tool for data analysis and strategy enhancement.

DeFAI Category: Tools-based applications that use AI to assist or enhance DeFi-related functions, such as strategy optimization, data analysis, investment advice, etc., with AI models assisting human decision-making. These financial automation products rely on explicit user instructions and strategies, executing the “from instruction to operation” process.

AgentFi Category: Building a financial system where on-chain AI agents are the primary executors. Agents can autonomously reason, make decisions, and complete transactions or governance operations, with users authorizing agents to act on their behalf. The agents actively make decisions and execute actions. It adopts the paradigm of “from intention to result,” where users only need to express their goals, and the system can complete strategy formulation and execution.

Currently, the market is flooded with a large number of Agent launch platforms or trading markets. Compared to AI Meme tokens that are purely speculative with no practical use, there are very few AgentFi projects that truly focus on the Crypto Native DeFi world. Through extensive online research and screening, we have simply categorized and rated the current AgentFi projects in the market, eliminating those that are too early or obviously lack substance.

Stablecoin Yield Optimization:

• ARMA: ★★★★★
• Polynomial: ★★★★
• Gelato: ★★★

Strategy Combination / Liquidity Mining Type:

• Brahma: ★★★★
• Mean Finance: ★★★★
• Opus: ★★★

On-chain transaction execution type:

• Rhino.fi: ★★★★
• Arcadia Finance: ★★★
• Sommelier: ★★★

The above 9 AgentFi projects are all in the preliminary stage of having on-chain execution closed loops, clear scenarios, and basic products. However, to be honest, the AgentFi track is still too early, and the experience of most products is hard to describe; compared to mature DeFi protocols, there is still a significant gap. We hope that in the future, the AgentFi track can break away from the stage of Meme token speculation and enter a true PMF stage.

2. Optimization of Stablecoin Yield in AgentFi

The track of stablecoin yield optimization is not new in the world of DeFi. From the earliest Yearn Finance automated yield aggregator and Idle Finance’s automated asset rebalancing and strategy portfolio platform, to Gauntlet, a professional DeFi risk modeling and protocol-level yield optimization platform aimed at institutions, these all belong to more representative automated yield optimization projects before AgentFi.

AgentFi has preliminarily realized the vision of mutual assistance between Crypto and AI: that is, AI empowers users to better participate in the native DeFi world of Crypto through on-chain information collection and decision-making capabilities, while utilizing the immutability of blockchain to retain transaction details in the form of on-chain logs, ensuring logical verifiability and traceability of actions. As a continuation of the stablecoin yield article, we focus on discussing ARMA, the only product in the AgentFi track that has received a five-star rating and is the sole entity in the “stablecoin yield optimization” category.

3. Giza Project Vision and Paradigm Concept

Giza is a blockchain infrastructure project focused on building “Verifiable AI Agents”, dedicated to promoting the emerging paradigm of Agent-native Finance(. As one of the few project teams in the ZKML track, Giza differs from teams like Modulus Labs or EZKL, which lean towards theoretical research or infrastructure development, by placing greater emphasis on engineering and practicality. It is one of the earliest projects in the ZKML track to achieve a complete closed loop of “on-chain intelligent agents + verifiable execution + AI scheduling”.

Giza has proposed a groundbreaking concept - Xenocognitive Finance, which introduces AI agents as a new interface in decentralized finance to address the cognitive bottleneck of human participants and reconstruct market intelligence and structure. The agents are not passive tools but rather “cognitive representatives” with independent reasoning capabilities and on-chain execution rights, enhancing the overall market’s information processing capacity through a distributed agent network, allowing market intelligence to scale with participant size rather than collapse, and providing trustworthy results through zero-knowledge proofs. In short, Xenocognitive Finance is a paradigm that expands human cognitive abilities through autonomous intelligent agents, achieving “cognitive offload” without sacrificing sovereignty in a non-custodial model, enabling efficient participation in the new paradigm of decentralized finance without the need for constant monitoring and automatic protocol switching.

The architecture of the Giza Protocol includes the following three layers:

• Semantic Abstraction Layer): Bridging the semantic gap between AI and blockchain, helping AI understand the blockchain world.

• Decentralized Execution Layer (: Provides a scalable, secure, and censorship-resistant agent execution environment.

• Agent Authorization Layer): Ensure that agents operate in a non-custodial, secure, and controllable manner.

The proxy execution process of Giza is accomplished through the collaboration of three core modules, divided into four key steps:

1. Request processing ( semantic abstraction layer ): AI agents initiate operation requests through the MCP protocol ( such as “deposit USDC into AAVE” ), the system will parse the natural language strategy into standardized on-chain operation instructions, while validating the format, semantics, and permission boundaries to ensure that the request is legitimate and executable.

2. Protocol Interaction ( Decentralized Execution Layer ): Execution nodes call DeFi protocols ( such as lending and exchanging ) to complete actual operations based on instructions. The system will dynamically optimize the trading path, considering gas costs, slippage tolerance, and protocol liquidity. After task execution, results and task proofs are generated for subsequent verification.

3. Execute verification ( authorization layer + execution layer ): The system checks whether the operation complies with the user-defined Session Key authorization scope ( protocol type, limit, time ), multiple Attester nodes independently verify the operation, and the aggregator node ( Aggregator ) collects signatures to reach a consensus, ensuring that the results are safe and credible;

4. Result Feedback ( Semantic Abstraction Layer ): The execution results are converted into structured semantic information ( such as changes in收益, asset distribution ), and returned to the AI agent system for subsequent strategy adjustments and automated cyclic decision-making.

In July 2023, Giza announced the completion of a $3 million Pre-Seed funding round, led by CoinFund, with participation from StarkWare, TA Ventures, and Arrington Capital. Angel investors include Rand Hindi and Julien Bouteloup. In May 2025, Giza completed a $2.2 million seed funding round, led by Base Ecosystem Fund, with follow-on investments from CoinFund, Arrington Capital, Re7 Capital, and Contango Digital Assets. These two funding rounds demonstrate the capital market’s continued optimism towards Giza’s vision in the “AI + DeFi” field.

IV. Representative Product ARMA: Stablecoin Yield Optimization Agent

ARMA( Autonomous Revenue Management Agent) is a stablecoin yield optimization smart agent launched by Giza, aimed at achieving automated yield maximization for users across protocols. It is currently deployed on the Base network and plans to expand to more Layer 2 ecosystems, supporting mainstream lending protocols such as AAVE, Morpho, Compound, and Moonwell.

( 4.1 Overview of ARMA Working Mechanism

• Smart Strategy Scheduling: Real-time analysis of stablecoin yields )APR(, transaction costs, and rebalancing timing, automatically executing optimal rebalancing operations.

• APR Optimization System: Through comprehensive optimization of interest rate comparison, cost assessment, and rebalancing logic, it ensures that each operation brings net profit; the actual annualized return can reach up to 2 times that of traditional static holdings.

• Automatic compound interest mechanism: Automatically receive and reinvest incentive tokens, converting rewards into original stablecoin; the compounding frequency is dynamically optimized based on position size and transaction costs to improve efficiency.

• Smart Coin Exchange Logic: Supports dual currency operations with USDC and USDT, automatically and efficiently exchanging coins through integrated DEX when necessary, ensuring that users can always withdraw assets in the original currency, enhancing flexibility and experience.

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) Overview of 4.2 ARMA Component Module and Security Architecture

The Giza Agent architecture consists of six major modules: Smart Accounts (, Session Keys ), Agent Core (, Protocol Integration ), Risk Module (, and Accounting Module ), which collaboratively build a secure, efficient, intelligent, and verifiable on-chain automation execution system.

At the same time, ARMA ensures the safety of users’ funds and operations through a three-layer protection mechanism:

• Smart Account Security: Based on self-custody smart accounts, users always retain control of their assets, and Giza cannot access the private keys; contracts are audited and support flexible permission management.

• Access control mechanism: Fine-tune proxy permissions through Session Key, limited to specific protocols, operation types, and validity periods, avoiding the risk of full authorization.

• Risk Management System: Only connect to prudently selected protocols, focusing on stable income scenarios; the entire trading process is traceable, ensuring operational transparency and auditability, enhancing the overall security of the system.

( 4.3 ARMA fee mechanism and revenue management

The fee and revenue mechanism of ARMA is centered around user-friendliness and transparency, covering three main aspects:

• Fee Structure: Charged based on earnings, transparent and traceable, a 10% success fee is only charged on the actual generated earnings. This fee is settled in one lump sum when the user withdraws, and all fee calculation processes can be viewed in real-time through the dashboard.

• Reward Management: Automatic receipt, unified distribution, the ARMA agent will automatically collect and aggregate all rewards from various integrated DeFi protocols, and all rewards will be returned to the user together with the principal and earnings upon withdrawal without manual operation by the user.

• Asset Management: ARMA does not charge any deposit or withdrawal fees. Regardless of how many protocols were involved in between or what types of coins were involved, users will always withdraw funds in the original deposited coins, ensuring the convenience of fund recovery.

) 4.4 ARMA’s integration with DeFi protocol and data performance

Through ARMA’s official data dashboard ###metrics.gizatech.xyz(, we can visually observe the continuous growth of its asset management scale and the number of smart agents within months of its launch. At the same time, the dashboard also shows the dynamic flow of assets among mainstream lending protocols such as Morpho, Aave, and Fluid. We believe that as ARMA connects to more DeFi protocols, the number of active agents increases, and the scale of funds continues to expand, it will further strengthen its positive growth flywheel effect.

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5. Core Positioning and Incentive Mechanism of Token

The Giza official has just announced the complete details of the token economic model, and the TGE token issuance has become an important milestone worth noting. $GIZA is the native asset of the Giza smart agent network, featuring immediate utility and long-term value capture ability, prioritizing the community and productivity.