AgentFi to XenoFi: A New Paradigm for Stablecoin Yields

In the context of increasingly rich stablecoin yield strategies and limited user attention and execution efficiency, AgentFi, as a new paradigm of "AI + DeFi" integration, provides users with an intelligent agency solution that requires no monitoring and automatically optimizes.

1. Classification and Comparison of DeFAI and AgentFi

DeFAI and AgentFi, although both are in the "AI + DeFi" intersection, have fundamentally different technical natures, product forms, and paradigm missions.

DeFAI Category: Using AI to assist or enhance DeFi related functions, such as strategy optimization, data analysis, investment advice, and other tool-based applications, with AI models assisting human decision-making. Such 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. Using the "from intention to outcome" paradigm, users only need to express their goals, and the system can formulate and execute the strategy.

Currently, there are very few AgentFi projects that truly focus on the Crypto Native DeFi world. Based on initial product availability, they can be divided into the following three categories:

stablecoin yield optimization type

• ARMA (Giza): ★★★★★
• Steadefi: ★★★☆☆
• Beefy Finance: ★★★☆☆

Strategy Portfolio/Liquidity Mining

• Alongside: ★★★★☆
• DeFiAI: ★★★☆☆
• Cogni Finance: ★★★☆☆

On-chain transaction execution type

• AiDEX: ★★★★☆
• Iris: ★★★☆☆
• Pandora: ★★★☆☆

2. Stablecoin Yield Optimization in AgentFi

Optimizing stablecoin yields is not new in the DeFi world. From the early Yearn Finance automated yield aggregator to the institutional-oriented Gauntlet professional DeFi risk modeling and protocol-level yield optimization platform, these are all representative projects prior to AgentFi.

AgentFi has initially achieved the integration of 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 an on-chain log format, ensuring that logic is verifiable and behavior is traceable.

3. Vision and Paradigm Concept of the Giza Project

Giza is a blockchain infrastructure project focused on building "Verifiable AI Agents", dedicated to promoting the emerging paradigm of Agent-native Finance(. As a representative project in the ZKML track, Giza emphasizes engineering and practicality, and is one of the first projects to achieve a complete closed loop of "on-chain intelligent agents + verifiable execution + AI scheduling".

Giza proposed the groundbreaking concept of Xenocognitive Finance ), which introduces agents as a new interface in decentralized finance to address the cognitive bottleneck of human participants and reconstruct market intelligence and structure. Agents, as "cognitive representatives," possess independent reasoning capabilities and on-chain execution rights, enhancing the overall information processing capacity of the market through a distributed agent network, and providing trustworthy results through zero-knowledge proofs.

The Giza Protocol architecture includes three layers:

1. Semantic abstraction layer: bridging the semantic gap between AI and blockchain
2. Decentralized Execution Layer: Provides a scalable, secure, and censorship-resistant agent execution environment.
3. Agency Authorization Layer: Ensure that the agency operates in a non-custodial, secure, and controllable manner.

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

1. Request Processing: The AI agent initiates an operation request, and the system parses and verifies it.
2. Protocol Interaction: Execution nodes call DeFi protocols to complete actual operations.
3. Execute verification: The system checks the compliance of operations, with independent verification by multiple nodes.
4. Result feedback: The execution result is converted into structured semantic information and returned to the AI agent.

Giza has completed two rounds of financing, obtaining $3 million in the Pre-Seed round and $2.2 million in the Seed round, demonstrating the capital market's ongoing optimism about its 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 supports mainstream lending protocols such as AAVE, Morpho, Compound, and Moonwell.

( Overview of the ARMA Working Mechanism 4.1

• Smart Strategy Scheduling: Real-time analysis of various protocol yields, automatically executing optimal rebalancing operations.
• APR Optimization System: Comprehensive optimization of interest rate comparison, cost assessment, and rebalancing logic
• Automatic compound interest mechanism: automatically receive and reinvest incentive tokens
• Smart Coin Exchange Logic: Supports dual currency operations of USDC and USDT, automatically and efficiently exchanges coins when necessary.

) Overview of 4.2 ARMA component modules and security architecture

ARMA consists of six major modules: intelligent account, session key, agent core, protocol integration module, risk management module, and accounting module.

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 have control over their assets.
2. Access control mechanism: finely set proxy permissions through Session Key
3. Risk Management System: Prudently select access protocols, the entire trading process is traceable.

![AgentFi to XenoFi, a new paradigm of stablecoin yields]###c39accf22b6b7517e2538f10cf35bbfb.jpg###

( 4.3 ARMA Fee Mechanism and Revenue Management

• Fee structure: Charged based on earnings, only a 10% success fee on the actual earnings generated.
• Reward Management: Automatically collect and aggregate all rewards, and return them together during withdrawal.
• Asset Management: No deposit or withdrawal fees are charged, and funds are withdrawn in the original tokens.

) 4.4 ARMA's integration with DeFi protocols and data performance

ARMA has currently integrated with mainstream lending protocols such as Morpho, Aave, and Fluid, with a continuous growth in asset management scale and the number of smart agents. As more protocols are integrated, active agents increase, and the scale of funds expands, ARMA is expected to further strengthen the positive growth flywheel effect.

![AgentFi to XenoFi, a new paradigm for stablecoin yield]###cdb8423a0d1e9c8a6bef870cb989aab3.jpg###

5. Core Positioning and Incentive Mechanism of Token

$GIZA is the native asset of the Giza Smart Agent Network, possessing instant utility and long-term value capture capabilities, with community-first, product-driven, and mechanism-restrained as core design principles.

Key points:

• Reasonable Initial Valuation: The initial FDV at TGE is $70M, with upside potential.
• Zero unlocking start: No token unlocking for the team and investors at TGE.
• The product has been launched: ARMA has managed over $30M in on-chain assets.
• Clear use of tokens: Used for staking validation, permission control, protocol governance, and agent incentives.
• Incentives are tied to security: Proxy nodes must stake $GIZA, and malicious behavior will be penalized.
• Value Reflux Mechanism: A portion of the income from agency operations flows into AMM for $GIZA repurchase or redistribution.
• Community-oriented distribution: Tokens are preferentially allocated to real users and participants.
• Dual Staking Mechanism: Node operators and regular users can stake $GIZA
• Time-weighted design: The longer you stake, the higher the reward multiplier and governance rights.
• Progressive Governance: Phased advancement, ultimately achieving decentralized autonomy

Giza Points incentive system:

• User side: Accumulate points through the use, feedback, and stress testing of proxy products.
• Developer side: Rewards are obtained by integrating new agents, optimizing execution logic, etc.
• Community members: Participate in educational promotions, governance discussions, and other activities to earn points.

ARMA is currently in the launch phase with high token subsidies. Users depositing stablecoins can earn a fixed annualized return of 15% in the first 3 months, consisting of basic interest and additional rewards. Users with deposits of up to $10M can also receive a share of 1% of the total $GIZA token supply proportionally, which will be released linearly over 9 months.

Giza Growth Flywheel Effect: Smart agents enhance users' capital management efficiency → Drive more DeFi operations → Generate continuous income flow → Enhance the value of $GIZA token → Attract more nodes and developers to join → Expand agency network capabilities → Achieve positive cycle

Giza Token Governance Mechanism: Adopting a phased evolutionary model, combining a professional committee with community representation. Initially led by the security committee, mid-term key matters will be governed on-chain, ultimately achieving governance by a professional committee elected entirely by the community.

6. Investment Analysis Logic and Potential Risks

Investment Logic:

1. Paradigm Innovation Narrative: Located at the intersection of AgentFi, ZK, and AI, it uniquely proposes the concept of "异认知金融".
2. Product practicality is leading: ARMA has achieved automated agent execution closed loop.
3. Early head mining profit window: stablecoin yield combined with token subsidy mechanism, providing opportunities similar to "head mining".

Potential Risks:

1. User trust building is still in the early stages: the market has limited trust in on-chain AI agents.
2. Complex systems superimpose security risks: The integration of multiple high-complexity modules relies on multiple correctness for security.
3. The path for token value release is unclear: the incentive structure and value return model require further market validation.

Summary

AgentFi, as a new paradigm of "AI + DeFi" fusion, provides DeFi users with an intelligent agent solution that does not require constant monitoring and automatically optimizes. Giza, based on the concept of "cognitive financial diversity," has taken the lead in realizing a complete closed loop of AI strategy + non-custodial execution, making it one of the few AgentFi projects that combines deep ideology with practical products. ARMA focuses on stablecoin yield optimization, has launched on multiple chains, and integrated mainstream lending protocols, equipped with a structured token incentive mechanism, possessing early mining effects.

AgentFi is still in the very early stages, with user trust, execution stability, and token value capture mechanisms yet to be further validated by the market. However, for users and builders who value product prospects and are willing to lay out early dividends of paradigm transformation, AgentFi, especially Giza/ARMA, may represent the harbinger and opportunity of the era of agent finance.

![AgentFi to XenoFi, a new paradigm of stablecoin yield](