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 the next stage paradigm of "AI + DeFi" integration, provides DeFi users with an intelligent agent solution that automatically optimizes without the need for constant monitoring.

1. Classification and Comparison of DeFAI and AgentFi

Although DeFAI and AgentFi are both in the "AI + DeFi" intersection, their technical essence, product forms, and paradigm missions are completely different. AgentFi differs from traditional DeFi or generalized DeFAI projects in that its core feature is: the AI Agent is the main executor and decision carrier, fully automatic 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., with AI models assisting human decision-making. Such financial automation products rely on explicit instructions and strategies from users, executing a process of "from instruction to operation."

AgentFi Category: Building a financial system with on-chain AI agents as the primary executors. Agents can autonomously reason, make decisions, and complete transactions or governance operations, with users authorizing agents to act on their behalf. The agents actively make decisions and execute actions. Using the "from intention to result" paradigm, users only need to express their goals, and the system can formulate and execute strategies.

Currently, the market is flooded with a large number of Agent launch platforms or trading markets. Compared to purely speculative AI Meme tokens that have no actual use, there are very few AgentFi projects that truly focus on the Crypto Native DeFi world. Through extensive online research and screening, eliminating projects that are too early or clearly air, we have made a simple classification and rating of the current AgentFi projects on the market:

Stablecoin yield optimization type:

• ARMA (Giza): ⭐⭐⭐⭐⭐
• Morpho Blue: ⭐⭐⭐⭐
• Idle Finance：⭐⭐⭐

Strategy Combination / Liquidity Mining:

• Sommelier：⭐⭐⭐⭐
• Mean Finance：⭐⭐⭐
• Babylon Finance：⭐⭐

On-chain transaction execution type:

• Synthetix v3：⭐⭐⭐⭐
• Arcadia Finance：⭐⭐⭐
• Polynomial：⭐⭐⭐

The above 9 AgentFi projects are all at a preliminary stage with on-chain execution closed loops, clear scenarios, and basic products. However, to be honest, the AgentFi sector is still too early, and the user experience of most products leaves much to be desired. Compared to mature DeFi protocols, there is still a significant gap in product quality. We hope that in the future, the AgentFi sector can move beyond the meme token speculation phase and enter a 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 automated yield aggregators and automatic asset rebalancing and strategy combination platforms, to professional DeFi risk modeling and protocol-level yield optimization platforms aimed at institutions, all belong to representative automated yield optimization projects before AgentFi.

AgentFi has initially realized the vision of mutual assistance between Crypto and AI: that is, through on-chain information collection and decision-making capabilities, AI empowers users to better participate in the native Defi world of Crypto, while utilizing the immutability of blockchain to ensure that transaction details are preserved in on-chain logs, making logic verifiable and behavior traceable. As a continuation of the stablecoin yield article, we focus on discussing the only product in the AgentFi track that has received a five-star rating and is the only target in the "stablecoin yield optimization" category------ARMA.

3. 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. Unlike teams that lean towards theoretical research or infrastructure development, Giza places a greater emphasis on engineering and practicality. It is one of the first projects in the ZKML track to realize a complete closed loop of "on-chain intelligent 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 "cognitive representatives," possessing independent reasoning abilities and on-chain execution permissions. They enhance the overall market's information processing capacity through a distributed network of agents, allowing market intelligence to expand with participant scale rather than collapse, and provide trustworthy results through zero-knowledge proofs (ZK). In short, Xenocognitive Finance is a new paradigm for efficient participation in decentralized finance that extends human cognitive capabilities through autonomous intelligent agents, achieving "cognitive offload" without sacrificing sovereignty in a non-custodial model, eliminating the need for constant monitoring and enabling automatic protocol switching.

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 by three core modules working together, divided into four key steps:

1. Request Processing (Semantic Abstraction Layer): The AI agent initiates operation requests through the MCP protocol, and the system parses natural language policies into standardized on-chain operation instructions, while verifying 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 perform actual operations based on instructions. 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 is within the Session Key authorization scope set by the user. Multiple Attester nodes independently verify the operation, and the Aggregator node collects signatures to reach a consensus, ensuring that the result is 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 automatic cyclic decision-making.

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 a $2.2 million seed round of financing, led by the 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" space.

4. 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 yields for users across protocols. It is currently deployed on the Base network and plans to expand to more Layer 2 ecosystems, supporting major lending protocols such as AAVE, Morpho, Compound, and Moonwell.

( 4.1 Overview of ARMA Mechanism

• Intelligent Strategy Scheduling: Real-time analysis of stablecoin yields (APR), transaction costs, and rebalancing timing for each protocol, automatically executing optimal rebalancing operations.
• APR Optimization System: Through comprehensive optimization of interest rate comparison, cost assessment, and rebalancing logic, it ensures that each operation brings net profit; the actual annualized return can reach up to 2 times that of traditional static holding.
• Automatic compound interest mechanism: Automatically receive and reinvest incentive tokens, converting rewards into original stablecoins; the compounding frequency is dynamically optimized based on position size and transaction costs to enhance efficiency.
• Intelligent coin exchange logic: Supports dual coin operations with USDC and USDT, efficiently swapping coins automatically through integrated DEX when necessary, ensuring users can always withdraw assets in the original coin type, enhancing flexibility and experience.

![AgentFi to XenoFi, a new paradigm for stablecoin yields])https://img-cdn.gateio.im/webp-social/moments-2f98cb1cce90b0297c0788aa5cc1a62b.webp###

( 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:

• Smart Account Security: Based on self-custody smart accounts, users always retain control over their assets, and Giza cannot access the private keys; contracts are audited, supporting flexible permission management.
• Access control mechanism: Fine-tune proxy permissions through Session Key, limited to specific protocols, operation types, and validity periods, avoiding the risk of full authorization.
• Risk Management System: Only connecting to prudently selected protocols, focusing on stable yield scenarios; the entire trading process is traceable, ensuring operational transparency and auditability, enhancing the overall security of the system.

![AgentFi to XenoFi, a new paradigm of stablecoin yields])https://img-cdn.gateio.im/webp-social/moments-86b52246444d196d16553ad20f01c05c.webp###

( 4.3 ARMA Fee Mechanism and Revenue Management

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

• Fee Structure: Charged based on earnings, transparent and verifiable, only a 10% success fee on the actual earnings generated. This fee is settled in one lump sum when the user withdraws, and all fee calculation processes can be viewed in real-time through the dashboard.
• Reward Management: Automatic receipt, unified distribution. The ARMA agent will automatically collect and aggregate all rewards from various integrated DeFi protocols, and all rewards will be returned to the user along with the principal and earnings when the user withdraws, without requiring manual operation.
• Asset Management: ARMA does not charge any deposit or withdrawal fees. Regardless of how many protocols were involved in the middle and what kinds of tokens were involved, users will always withdraw funds in the original deposited tokens, ensuring the convenience of fund recovery.

) 4.4 ARMA's integration 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 showcases the dynamic flow of assets among mainstream lending protocols such as Morpho, Aave, and Fluid. We believe that as ARMA connects to more DeFi protocols, increases the number of active agents, and expands its capital scale, it will further strengthen its positive growth flywheel effect.

![AgentFi to XenoFi, a new paradigm for stablecoin yields]###https://img-cdn.gateio.im/webp-social/moments-de27123568f85c35bb7e8af287749188.webp###

5. Core Positioning and Incentive Mechanism of Token

The Giza official has just announced the complete details of the token economic model, and the TGE issuance has become an important milestone worth paying attention to. $GIZA is the native asset of the Giza Smart Agent Network, which has immediate usability and 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, providing substantial upside potential.