Ethereum's Starknet to Deploy Autonomous AI Agents for Yield Optimization and Portfolio Management
Summary:
Ethereum's Starknet blockchain is preparing to host artificial intelligence (AI) agents to autonomously handle on-chain operations like yield optimization and portfolio restructuring. The initiative is led by Giza, a company focused on bringing AI to blockchains. These AI agents, to be deployed by the end of June, will have the capability to supply liquidity on decentralized exchanges, predict price movements, and adjust crypto holdings. Built with Starknet's own language, Cairo, they will leverage zero-knowledge proofs for information security and user privacy.
Ethereum's Starknet, a layer-2 blockchain, is set to introduce artificial intelligence (AI) agents capable of autonomously managing on-chain operations including yield optimization and portfolio reallocating. This initiative is spearheaded by Giza, a company committed to integrating AI on blockchains, which secured $3 million in a pre-seed funding round led by CoinFund in July 2023. Renç Korzay, Co-founder of Giza, disclosed to Cointelegraph that deployment of AI agents on Starknet is slated for June ending and will be introduced to other chains subsequently.
Korzay also emphasized that the AI agents would be designed to manage four different operations, beginning with yield aggregation. This involves identifying the most profitable avenue and depositing into various yield outlets. In addition, forthcoming releases will enhance these AI agents with robo-advisor functionality to help users structure personalized portfolio allocations guided by their risk preference.
Throughout the beta phase, the techniques used by AI agents will be reviewed and approved by the Giza team for safety purposes. Following this, the Giza Protocol will grant full permission to agents and also guarantee both cryptographic and cryptoeconomic security. This approach aims to foster a trust-minimized engagement between developers and users.
These AI agents have the potential to automatically supply liquidity on decentralized exchanges, make leveraged price bets, or even forecast price fluctuations. They can then adjust crypto assets according to the user-set strategy. As reported in a press release received by Cointelegraph on May 9, the yield-boosting AI agents are slated for immediate deployment with others to be introduced subsequently.
Giza described their product as “low-cost and low-computation,” capable of maximizing returns by trading assets to maintain a consistent weighting ratio within a portfolio. As Starknet accounts are smart contracts through inherent account abstraction features, contract proofs can be confirmed directly.
The AI frameworks are crafted with the Starknet language, Cairo, and utilize Zero-Knowledge Scalable Transparent Argument of Knowledge and zero-knowledge proofs (ZK-proofs) developed by StarkWare, the firm behind Starknet. ZK-proofs ensure information security while respecting user privacy.
Cem Dagdelen, Giza’s co-founder, believes that these agents will act as a novel application layer for Web3, minimizing users' exposure to smart contract risks and complexities. Additionally, the application of such agents is not exclusive to crypto and the blockchain ecosystem. Giza conveyed that these agents may help “highly regulated sectors” lower supervision expenses by applying models to verify outputs’ validity.
On another note, Ava Labs founder Emin Gün Sirer suggested at a blockchain event that AI-integrated smart contract coding might become a reality within 5 to 10 years. He believes it could significantly heighten the number of blockchain users.
However, Vitalik Buterin, Ethereum co-founder, advised caution to developers introducing AI on blockchains. He proposed that while AI contributes to understanding on-chain activities, it ought not to enforce smart contract regulations.
Published At
5/9/2024 1:30:00 PM
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