AgentFi to XenoFi: A New Paradigm for Stablecoin Yield

In the context where stablecoin yield strategies are becoming increasingly diverse but users' attention and execution efficiency are limited, AgentFi serves as the next paradigm of "AI + DeFi" integration, providing DeFi users with an intelligent agency solution that automates optimization without the need for constant monitoring.

1. Classification and Comparison of DeFAI and AgentFi

DeFAI and AgentFi, although both are in the "AI + DeFi" intersection, have fundamentally different technological natures, product forms, and paradigm missions. AgentFi differs from traditional DeFi or generalized DeFAI projects in that its core feature is: the AI Agent is the main executor and decision-making carrier, completely automating decision-making and closed-loop execution, rather than simply using AI as a decision-support 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. AI models assist human decision-making. These financial automation products rely on explicit user instructions and strategies, executing a process of "from instruction to operation."

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. Users authorize the agent to act on their behalf, and the agent makes proactive decisions and executes them. Using the "from intention to outcome" paradigm, users only need to express their goals, and the system can formulate and execute the strategy.

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 actual use, there are very few AgentFi projects that truly focus on the Crypto Native Defi world. Through extensive online research and screening, we have conducted a simple categorization and rating of the AgentFi projects currently in the market, eliminating those that are too early or obviously without substance.

stablecoin yield optimization type

• ARMA (Giza): ★★★★★
• Ceazor: ★★★☆☆
• Thallo: ★★☆☆☆

Strategy Portfolio/Liquidity Mining Type

• Decentrain: ★★★★☆
• Phinance: ★★★☆☆
• Alphacraft: ★★☆☆☆

On-chain transaction execution type

• AgentX: ★★★★☆
• FlowX: ★★★☆☆
• Notional Agent: ★★☆☆☆

The above 9 AgentFi projects have all reached a preliminary stage with on-chain execution closed loops, clear scenarios, and basic products. However, to be honest, the AgentFi track is still too early; the experience of most products is hard to describe, and there is still a considerable gap compared to mature DeFi protocols. We look forward to the future where the AgentFi track can move past the meme token speculation phase and enter the true PMF stage.

2. Stablecoin Yield Optimization in AgentFi

The track of stablecoin yield optimization is not new in the DeFi world. From the earliest Yearn Finance (YFI) automated yield aggregator and Idle Finance's automated asset rebalancing and strategy combination platform, to specialized DeFi risk modeling and protocol-level yield optimization platforms, these all belong to relatively representative automated yield optimization projects prior to AgentFi.

AgentFi ( has initially realized the vision of integrating 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 an on-chain log format to ensure logic verification and behavior traceability. As a continuation of stablecoin yield articles, we focus on discussing 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 — ARMA.

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III. Giza Project Vision and Paradigm Concept

Giza is a blockchain infrastructure project focused on building "Verifiable AI Agents" and is dedicated to promoting the emerging paradigm of Agent-native Finance. As one of the few project teams in the ZKML track, Giza differs from other teams that lean towards theoretical research or infrastructure development, 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 smart 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 bottlenecks 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 permissions. They enhance the overall market's information processing capabilities through a distributed agent network, allowing market intelligence to scale with participant size rather than collapse, and providing trustworthy results through zero-knowledge proofs (ZK). In short, Xenocognitive Finance is a new paradigm for efficiently participating in decentralized finance through autonomous intelligent agents that extend human cognitive abilities, achieving "cognitive offload" without sacrificing sovereignty in a non-custodial model, eliminating the need for constant monitoring and automatic protocol switching.

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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: Ensures that the agent operates in a non-custodial, secure, and controllable manner.

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

1. Request Processing (Semantic Abstraction Layer): The AI agent initiates an operation request through the MCP protocol (e.g., "Deposit USDC into a lending platform"), the system parses the natural language strategy into standardized on-chain operation instructions while verifying the format, semantics, and permission boundaries to ensure the request is legal and executable;

2. Protocol Interaction (Decentralized Execution Layer): Execution nodes call DeFi protocols (such as lending, swapping) based on instructions to complete actual operations. 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. Execution Verification (Authorization Layer + Execution Layer): The system checks whether the operation falls within the Session Key authorization scope set by the user (protocol type, limit, time). Multiple Attester nodes independently verify the operation, and the Aggregator collects signatures to reach consensus, ensuring the result is secure and trustworthy.

4. Result Feedback (Semantic Abstraction Layer): The execution results are converted into structured semantic information (such as changes in returns, asset distribution) and returned to the AI agent system for subsequent strategy adjustments and automated cyclical 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 included 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 about Giza's vision in the "AI + DeFi" space.

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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 maximizing automated yield across protocols for users. It is currently deployed on the Base network and plans to expand to more Layer 2 ecosystems, supporting multiple mainstream lending protocols.

) 4.1 Overview of ARMA Working Mechanism

• Intelligent Strategy Scheduling: Real-time analysis of the stablecoin yields (APR), transaction costs, and rebalancing timing of various protocols, automatically executing optimal rebalancing operations.
• APR Optimization System: Through the comprehensive optimization of interest rate comparison, cost assessment, and rebalancing logic, it ensures that each operation brings net profit; the actual annualized yield 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 stablecoins; compounding frequency is dynamically optimized based on position size and transaction costs to enhance 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.

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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. These modules work together to build a secure, efficient, intelligent, and verifiable on-chain automation execution system.

At the same time, 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 contracts are audited and support flexible permission management.
2. Access control mechanism: Fine-tune proxy permissions 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 carefully selected protocols, focusing on stable income scenarios; the entire trading process is traceable, ensuring transparent and auditable operations, enhancing the overall security of the system.

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) 4.3 ARMA Charging Mechanism and Yield Management

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

• Fee Structure: Charged based on earnings, transparent and verifiable, only a 10% success fee is 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, and all rewards will be returned to the user along with the principal and earnings upon withdrawal, without the need for manual operation by the user.
• Asset Management: ARMA does not charge any deposit or withdrawal fees. Regardless of how many protocols are involved in between or what types of tokens are involved, users will always withdraw funds in the original tokens deposited, ensuring the convenience of fund recovery.

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) 4.4 Integration of ARMA with DeFi Protocols and Data Performance

Through ARMA's official data dashboard, we can intuitively 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 between major lending protocols such as Morpho, a lending platform, 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.