DeFAI is the Next Frontier in DeFi

Def-AI. Dee-Fayi. However you pronounce it, the intersection of decentralised finance and artificial intelligence (DeFAI) is here to stay.

DeFAI — and the agents that complete DeFAI actions — will revolutionise decentralised finance (DeFi) on-chain through the simplification and abstraction of the complex transactions, strategies, and analysis required to successfully navigate the DeFi space.

But with a simplified user experience comes inherent risks related to centralisation, the security of the AI agent in question, and the risk of poor fund management through inadequate model training.

The DeFAI Revolution and Challenge

AI models can make it difficult for users to understand how decisions are made, which is antithetical to the transparency ethos of blockchain. Furthermore, integrating AI into DeFi might complicate regulatory compliance, especially with algorithms making autonomous decisions in financial contexts.

DeFAI represents the next evolution in decentralised finance, where AI agents automate complex financial strategies, optimise yields, and simplify user interactions with DeFi protocols. This advancement promises to democratise sophisticated financial strategies previously accessible only to institutional investors.

The integration of AI into DeFi presents unique challenges:

• Security risks from automated decision-making
• Lack of transparency in AI operations
• Complex cross-chain yield optimisation
• Regulatory compliance concerns
• Risk of poor fund management through inadequate AI training

Enter Yelay’s Yield Layer.

Our Yield Layer reduces risk of user funds being compromised or mismanaged, with Yelay only requiring agents to plug into our dedicated AI-optimised vaults. The rest is managed by our Yield Layer infrastructure, ensuring users are given safer, more secure yields across multiple chains.

Yelay is the DeFAI Yield Infrastructure Powering Agents

Yelay’s Yield Layer is optimised for DeFAI agents, giving them access to over 40 strategies from top blue-chip Ethereum DeFi protocols like Lido, AAVE, Morpho, Gearbox, and Curve.

Furthermore, the ability to tap into the Ethereum DeFi landscape from other chains including Sui, Base, and Arbitrum, ensures transaction fees are kept at a minimum whilst Ethereum’s higher yields and security remain.

The Yield Layer also provides the following:

Enhanced Yield Optimisation

• Automated Strategy Implementation: Yelay can apply preset yield strategies across different DeFi platforms, automatically adjusting to market conditions for optimal returns without human intervention.
• Cross-Chain Yield Farming: By accessing multiple chains, the AI can exploit yield opportunities that are unique to each blockchain or those that span across chains through bridges or liquidity pools.

Diversification

• Risk Management: Diversifying investments across multiple DeFi protocols reduces the risk associated with any single platform or smart contract failure.
• Platform-Specific Advantages: AI agents can leverage Yelay’s automation across multiple DeFi protocols for better overall performance.

Efficiency and Scalability

• Reduced Transaction Overhead: By optimising interactions across chains, the AI agents can minimise gas fees and transaction times, making operations more cost-effective.
• Scalability: Yelay allows AI agents to scale operations across numerous platforms without the need for manual reconfiguration for each new chain or protocol.

Security and Compliance

• Security Checks: Yelay uses only the most trusted DeFi protocols, helping agents avoid platforms with known vulnerabilities or poor governance structures.
• Regulatory Compliance: Yelay helps ensure regulatory compliance for DeFAI users.

Reduced Operational Complexity

• Simplified Control: Yelay simplifies the complexity of managing investments across chains and protocols by providing a unified control layer where the AI can operate.

Yelay: The Trusted Yield Environment™ for DeFAI

As DeFAI emerges as a transformative force in blockchain, Yelay is positioning itself as the industry’s first Trusted Yield Environment™ (TYE), providing a secure, transparent, and efficient infrastructure for AI-powered financial operations.

Yelay’s TYE serves as the critical infrastructure layer between DeFAI platforms and the broader DeFi ecosystem, similar to how Trusted Execution Environments (TEEs) serve as a secure foundation for sensitive computational processes.

Drawing inspiration from TEEs in hardware security, Yelay’s TYE creates a secure, isolated environment for DeFAI operations. This infrastructure connects over 40 blue-chip DeFi strategies across multiple chains, including Ethereum, Sui, Base, and Arbitrum.

Key Features

Secured Yield Optimisation: Our TYE provides AI agents with protected access to verified yield strategies, ensuring secure and optimal returns whilst maintaining the integrity of user funds. Similar to how TEEs protect sensitive computations, Yelay’s infrastructure safeguards yield-generating operations.

Transparent Operations: Unlike traditional ‘black box’ AI systems, Yelay’s TYE provides complete transparency into yield strategies and protocol interactions, maintaining blockchain’s ethos of openness whilst protecting proprietary AI algorithms.

Cross-Chain Security: Yelay’s infrastructure enables secure cross-chain operations, allowing AI agents to access Ethereum’s robust DeFi ecosystem from multiple chains whilst minimising transaction costs.

Benefits for DeFAI Platforms

Risk Mitigation: Yelay’s comprehensive risk mitigation strategy begins with rigorous pre-vetted protocol integration, ensuring only the most reliable protocols are accessible through our infrastructure. This is enhanced by automated risk management systems that continuously monitor and adjust to market conditions. Our multi-layer security checks work in conjunction with continuous protocol monitoring to provide real-time threat detection and prevention.

Operational Excellence: Our infrastructure delivers exceptional operational efficiency through seamlessly simplified protocol integration, allowing DeFAI platforms to focus on their core capabilities. The system’s automated yield optimisation continuously maximises returns whilst maintaining security. Through gas-efficient operations and robust cross-chain compatibility, platforms can scale their operations across multiple networks without compromising performance or security.

Regulatory Alignment: Yelay’s infrastructure is built with regulatory compliance at its core. Our system maintains transparent operation logging and compliant protocol integration, ensuring all activities are traceable and auditable. Through clear audit trails and a comprehensive risk management framework, platforms can confidently navigate regulatory requirements whilst maintaining operational efficiency.

The Future of DeFAI is The Trusted Yield Environment

Yelay’s Trusted Yield Environment™ represents a paradigm shift in DeFAI infrastructure, providing the security, transparency, and efficiency necessary for the next generation of decentralised finance. By creating a protected environment for AI-driven yield operations, Yelay enables the safe and efficient deployment of DeFAI applications whilst maintaining the core principles of decentralisation and transparency.

As DeFAI continues to evolve, Yelay’s TYE will expand to include advanced AI-specific yield strategies, enhanced cross-chain capabilities, deeper protocol integrations, and extended regulatory compliance tools.

Check out Yelay today and learn the latest in what’s cooking for the DeFAI future.