The Integration of AI Agents and Blockchain: A New Paradigm of Smart Finance on the AO Network

In the future world, AI agents may form a digital symbiotic relationship with humans. These autonomous agents are capable of understanding users' natural language needs, clarifying intentions, and automatically completing complex tasks.

The AO network has established an Actor-based asynchronous parallel system that achieves massive scaling of computational power by reaching consensus only on transaction order, rather than on the entire computation process. The AR network serves as the foundational layer for transaction order consensus and state storage.

Compared to other mainstream blockchain projects, AO's infrastructure supports more complex computing capabilities, including the operation of AI models. The recent update of the WASM virtual machine allows AO's computing units to access 16GB of memory, sufficient to run large language models like Llama 3.

AO also adopted WeaveDrive technology, allowing users to access data on Arweave as if they were accessing a local hard drive. This design enhances the availability and combinability of data while also encouraging users to upload more data to the Arweave network.

The system design of AO creates conditions for the integration of AI agents into smart contracts. Through AO programming, AI agents that can make intelligent decisions in the market can be created; these agents may compete with each other or represent humans in trading. This trend may lead to more automation and intelligence in future quantitative trading.

The development of DeFi has made it possible to execute various financial operations on-chain, but the vitality of the market still depends on capital flow and decision-making. The development of AO may expand the scope of intelligent decision-making in the market, creating a richer decentralized autonomous agent financial system.

Currently, some projects have begun to realize this vision, among which Autonomous Finance (AF), Dexi, and Outcome are prominent examples.

Autonomous Finance

AF focuses on developing AI-integrated financial applications on AO, attempting to chain the smart decision layer. Its business includes core infrastructure, AgentFi, and ContentFi.

Core facilities include protocols such as decentralized exchanges, lending, derivatives, and synthetic assets.

AgentFi executes trading strategies through composable autonomous agents. These agents utilize on-chain data streams for self-learning and can operate independently within the AO ecosystem without the need for off-chain signals or human intervention.

Typical autonomous agents include:

• Dollar Cost Averaging Asset Management Agent
• Self-balancing autonomous index fund
• Autonomous Hedge Fund
• Yield Aggregator Proxy
• On-chain prediction agency
• High-frequency trading agent

Among them, the DCA agent serves as a basic module, providing various customizable parameters such as triggering trades within a specific price range, adjusting trading intervals, and trading based on price weighting.

Content finance is a framework that monetizes data on Arweave into AO composable assets. AF is building applications that allow data contributors to contribute market intelligence and other data to the permaweb, which will serve as on-chain signals for autonomous agents and machine learning.

AF has currently launched two main products: AO Link and Data OS. AO Link is the message browser of the AO network, providing features such as message computation, visualization, and real-time message streams. Data OS is a ContentFI protocol that uses autonomous AI agents to acquire and regenerate content.

Dexi

Dexi is an important application on the AO network that can autonomously identify, collect, and aggregate various financial data from the network. This data includes asset prices, token exchanges, liquidity fluctuations, and more. Dexi serves end users and AO applications, providing data subscription services that allow other processes to receive timely updates on price adjustments and other information.

Outcome

Outcome is a prediction market platform where users can place bets on various events. Currently, the prediction topics cover fields such as technology, memes, business, gaming, DeFi, and AO. In the future, the platform plans to introduce autonomous agents based on large language models to enable automated betting in the prediction market.

AgentFi on AO provides new possibilities for deploying AI models directly on the Blockchain and executing automated trading. With the breakthrough of AO+AR design beyond traditional Blockchain limitations, we look forward to seeing more innovative applications that combine AI agents to implement financial strategies.