🌅The Rise of AI Agents

The Rise of AI Agents

AI agents combine language models with specialized tools to automate complex tasks. Blockchain integration enables these agents to interact with decentralized systems, creating new possibilities for autonomous financial management and trustless automation.

Frameworks like Eliza, LangChain, and Vercel AI SDK provide the building blocks for agent development. These tools handle the complexities of prompt engineering, tool integration, and agent coordination, letting developers focus on solving specific use cases. For example, DeFi agents can monitor liquidity pools, adjust positions based on market conditions, and execute trades across decentralized exchanges - all while maintaining complete transparency through on-chain verification.

Blockchain integration enables agents to:

1. Execute verifiable transactions without centralized intermediaries

2. Access historical market data directly from the chain

3. Interact with smart contracts for automated position management

4. Maintain audit trails of all actions and decisions

A DeFi agent might monitor a user's lending positions across protocols like Ionic (or Aave), automatically adjusting collateral ratios to prevent liquidation. The same agent could optimize yield farming strategies by moving assets between pools based on APY changes, gas costs, and impermanent loss calculations.

Beyond DeFi, blockchain-enabled agents serve traditional retail use cases. Supply chain agents can track products through decentralized networks, while recommendation agents can build user profiles without compromising privacy. The cryptographic guarantees of blockchain provide accountability for agent actions while preserving user autonomy.

Within Mode's ecosystem, developers are pushing the boundaries of what's possible with AI agents. By automating yield strategies across money markets, Giza's ARMA agent has already attracted over $200,000 in assets under management (AUA). Meanwhile, OLAS introduced MODIUS, a sophisticated DEX liquidity strategist that analyzes market conditions and autonomously manages liquidity positions. These early implementations demonstrate the practical value of AI agents in reducing the cognitive load of DeFi for users.

The ecosystem continues to expand with projects like Amplifi, which is developing an AI-powered protocol for cross-chain liquidity management, and Brian, which simplifies agent development through an intuitive API for blockchain interactions. Each project approaches AI agents from a unique angle – from automated portfolio management to infrastructure development – creating a comprehensive toolkit for the next generation of DeFi applications.

Check more of our tooling in the tooling section.

Please keep reading to learn what AI Agents are and how they work.