Autonomous AI bots on Starknet will be able to perform on-chain activities for users, such as optimizing yield and re-allocating portfolios.
Ethereum layer-2 blockchain Starknet and Giza, a firm aiming to bring AI to blockchains, have partnered to introduce AI-powered agents able to perform autonomous on-chain activities on behalf of blockchain users by the end of June 2024.
Potentially, the bots could take over various activities, including yield aggregating, advising on the best portfolio allocation, providing liquidity on decentralized exchanges, making leveraged price bets, adjusting crypto holdings based on the user’s preferred strategy, and predicting price movements.
Initially, AI agents’ activities will be moderated by the Giza team to ensure security. However, in the course of time, the company aims to make its agents completely permissionless through the Giza Protocol. Its mechanism is supposed to provide both cryptographic and crypto-economic security to the bot actions as well as ensure a trust-minimised exchange between developers and users.
“As all accounts on Starknet are smart contracts — via the network’s native account abstraction features — this allows for proofs to be verified directly within the contract,” Giza explained.
The yield-optimizing AI agents will be deployed first, while the other types will follow later. Giza also plans to deploy its autonomous bots on other chains eventually.
As cryptocurrency trading is a complex phenomenon, many investors choose to automate their trading strategies, employing algorithmic crypto trading bots for that purpose. Automated tools eliminate the need for individuals to invest substantial time learning various strategies and trading parameters. The use of AI is the next step in blockchain automation.
Giza co-founder Cem Dagdelen hopes AI agents will “become the new application layer for Web3, abstracting away smart contract risks and complexities from users.” Moreover, the use of AI agents isn’t limited to cryptocurrencies and blockchain. The company states AI bots can also help “highly regulated sectors” significantly cut oversight costs.
