DefineDeFiWeb3 Glossary

AI Agent (DeFi)

An artificial intelligence program that automatically manages DeFi activities for you. It can trade, rebalance portfolios, and optimize yields without constant human input.

Example

An AI agent monitors your stablecoin positions across 5 protocols and automatically moves funds to whichever offers the best yield, adjusting every few hours.

Related Terms

Tools & Protocols

⚙️How It Works

  1. 1

    Set Goals

    Tell the AI your risk tolerance and objectives

  2. 2

    Grant Permissions

    Approve the agent to interact with protocols on your behalf

  3. 3

    AI Monitors

    Agent continuously scans opportunities and risks

  4. 4

    Auto-Execute

    AI makes trades and adjustments to optimize returns

📊Key Numbers

$2B+
AI DeFi TVL
in AI-managed vaults (2025)
< 1 sec
Response Time
for market changes
2-5%
Avg Improvement
yield vs manual (claimed)

⚠️Risks & Warnings

  • •
    Smart Contract Risk

    AI agents need broad permissions, increasing exploit exposure

  • •
    Model Errors

    AI can make bad predictions, especially in unprecedented market conditions

  • •
    Overfitting

    AI trained on past data may fail when market dynamics change

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