AgentFi to XenoFi: A New Paradigm of Stablecoin Yields

In the context of increasingly rich stablecoin yield strategies, but with users' attention and execution efficiency being limited, AgentFi, as a new paradigm of "AI + DeFi" integration, provides DeFi users with an intelligent agent solution that requires no constant monitoring and offers automatic optimization.

Classification and Comparison of DeFAI and AgentFi

Although DeFAI and AgentFi both belong to the "AI + DeFi" crossover field, there are significant differences in their technological essence, product forms, and paradigm missions. The core feature of AgentFi is that the AI Agent acts as the main executor and decision-making carrier, capable of making fully automated decisions and executing them in a closed loop, rather than simply using AI as a supplementary tool for data analysis and strategy enhancement.

DeFAI Category: Tools 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. Such financial automation products rely on explicit user instructions and strategies to execute the "from instruction to action" 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. Utilizing the "from intention to result" paradigm, users only need to express their goals, and the system can formulate and execute strategies.

Currently, there are limited AgentFi projects that genuinely focus on the Crypto-native DeFi world. After screening, we have made a simple categorization and rating of the AgentFi projects available in the market.

Stablecoin Yield Optimization:

• ARMA: ⭐⭐⭐⭐⭐
• Sturdy Finance: ⭐⭐⭐
• Defilytica: ⭐⭐

Strategy Portfolio/Liquidity Mining Class:

• Imbue Network: ⭐⭐⭐⭐
• Llamafolio: ⭐⭐⭐
• Forta Network: ⭐⭐⭐

On-chain transaction execution type:

• Avantis: ⭐⭐⭐⭐
• AiDEX: ⭐⭐⭐
• Ritual: ⭐⭐

The above 9 AgentFi projects have initially established an on-chain execution loop, clear application scenarios, and have basic usable products. However, overall, the AgentFi track is still in its early stages, and the user experience of most products still has significant room for improvement. We look forward to the future of the AgentFi track being able to break away from mere token speculation and enter a stage of true product market matching.

Stablecoin Yield Optimization in AgentFi

The optimization of stablecoin yields is not a new concept in the DeFi world. From the early automated yield aggregator Yearn Finance (YFI) and the automated asset rebalancing and strategy composition platform Idle Finance, to the institutional-focused Gauntlet professional DeFi risk modeling and protocol-level yield optimization platform, these are all representative automated yield optimization projects prior to AgentFi.

AgentFi has initially realized the vision of mutual integration between Crypto and AI: 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 that logic is verifiable and behavior is traceable. In the AgentFi track, the only project that has received a five-star rating in terms of product usability and belongs to the "stablecoin yield optimization" category is ARMA.

Giza Project Vision and Paradigm Concept

Giza is a blockchain infrastructure project focused on building "Verifiable AI Agents" and is dedicated to promoting Agent-native Finance(, this emerging paradigm. As one of the few project teams in the ZKML track, Giza places greater emphasis on engineering and practicality, making it one of the earliest projects in this track to achieve a complete closed loop of "on-chain intelligent agents + verifiable execution + AI scheduling."

Giza has proposed an innovative concept – Xenocognitive Finance ), which introduces AI agents ( as a new type of interface in decentralized finance to address the cognitive bottlenecks of human participants and reconstruct market intelligence and structure. The agents are not passive tools but "cognitive representatives" with independent reasoning capabilities and on-chain execution permissions, enhancing the information processing capabilities of the entire market through a distributed agent network, allowing market intelligence to scale with participant size rather than collapse, and providing credible results through zero-knowledge proofs ) ZK (. 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 decentralized finance without the need to constantly watch the market or switch protocols automatically.

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

1. 语义抽象层(Semantic Abstraction Layer): Bridging the semantic gap between AI and blockchain, helping AI understand the blockchain world.

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

3. 代理授权层)Agent Authorization Layer(: Ensure that the agent operates in a non-custodial, secure, and controllable manner.

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

1. Request handling ) semantic abstraction layer (: The AI agent initiates an operation request through the MCP protocol, and the system parses the natural language policy into standardized on-chain operation instructions while verifying the format, semantics, and permission boundaries to ensure that the request is legal and executable.

2. Protocol Interaction ) Decentralized Execution Layer (: Execution nodes call DeFi protocols to complete actual operations according to instructions. The system dynamically optimizes the trading path, taking into account gas costs, slippage tolerance, and protocol liquidity. After the task is executed, results and proof of the task are generated for subsequent verification.

3. Execute verification ) authorization layer + execution layer (: The system checks whether the operation complies with the Session Key authorization range set by the user, multiple Attester nodes independently verify the operation, and the aggregator node ) Aggregator ( collects signatures to reach consensus, ensuring that the results are secure and trustworthy.

4. Result feedback ) semantic abstraction layer (: The execution result is transformed into structured semantic information and returned to the AI agent system for subsequent strategy adjustments and automated iterative decision-making.

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

Representative Product ARMA: Stablecoin Yield Optimization Agent

ARMA) Autonomous Revenue Management Agent ( is a stablecoin yield optimization smart agent launched by Giza, aimed at automating yield maximization across protocols for users. 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.

Overview of ARMA Working Mechanism:

• Intelligent strategy scheduling: Real-time analysis of the stablecoin yields )APR(, trading costs, and rebalancing timing, automatically executing optimal rebalancing operations.

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

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

• Smart coin exchange logic: Supports dual coin 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 coin type, enhancing flexibility and experience.

Overview of ARMA Component Modules 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 (. These modules work together to build a secure, efficient, intelligent, and verifiable on-chain automation execution system.

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ARMA ensures the safety of user funds and operations through a three-layer protection mechanism:

1. Smart Account Security: Based on self-custody smart accounts, users always have control over their assets, and Giza cannot access the private keys; the contract is audited and supports flexible permission management.

2. Access control mechanism: Set proxy permissions finely through Session Key, limited to specific protocols, operation types, and validity periods, to avoid the risk of full authorization.

3. Risk Management System: Only connect to prudently selected protocols, focusing on stable income scenarios; the entire trading process is traceable, ensuring that operations are transparent and auditable, enhancing the overall security of the system.

ARMA Fee Mechanism and Revenue Management:

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

Reward Management: Automatic collection and unified distribution. The ARMA agent will automatically gather and consolidate all rewards from various integrated DeFi protocols. All rewards will be returned to the user along with the principal and earnings during withdrawal without requiring any manual operation from the user.

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

Through the official data dashboard of ARMA, we can intuitively observe the continuous growth of its asset management scale and the number of smart agents within a few 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. 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 the positive growth flywheel effect.

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Core Positioning and Incentive Mechanism of Tokens

The Giza official has just announced the complete details of the token economic model, making the TGE token issuance an important milestone worth noting. $GIZA is the native asset of the Giza Smart Agency Network, featuring immediate utility, long-term value capture capability, and is designed with core principles of community-first, product-driven, and mechanism restraint.

Key points summary:

• Reasonable initial valuation: The initial FDV at TGE is $70M, significantly lower than similar AI projects, indicating substantial upside potential.
• Zero unlock launch: The team and investors have no token unlock at TGE, avoiding initial selling pressure and being highly aligned with the community.
• Product has been implemented: ARMA smart agent has managed over $30M in on-chain assets, and market demand is supported by real use cases.
• The use of the token is clear: $GIZA is used for staking validation, permission control, protocol governance, and agent incentives, and is a core asset.
• Incentives and security binding: Proxy nodes need to stake $GIZA, and malicious behavior will be punished to ensure safe and reliable execution.
• Value Reflow Mechanism: A portion of the agent operation income flows into AMM for $GIZA repurchase or redistribution, creating a sustainable incentive closed loop.
• Community-oriented distribution: Tokens are preferentially allocated to real users and participants, emphasizing fairness.