🔗 2.2 Decentralised Finance (DeFi) and DeFAI

Decentralised finance (DeFi) refers to financial applications built on public blockchains that operate without central intermediaries. Smart contracts enable lending, borrowing, trading, derivatives and yield generation directly between users, enabling transparent and non‑custodial transactions. Key characteristics include:

• Transparency: transactions and protocols are publicly auditable.

• Composability: DeFi protocols can be combined like “money Lego” to build complex strategies.

• Permissionless access: anyone with a wallet can participate, regardless of location or background.

• Non‑custodial control: users hold their private keys and maintain control of assets.

DeFi has experienced rapid growth since 2020, with total value locked (TVL) peaking at over US$180 billion in 2021. It has introduced innovations like automated market makers (Uniswap), algorithmic stablecoins (DAI), lending protocols (Aave, Compound) and on‑chain derivatives (GMX, HyperLiquid, Mycelium). However, DeFi remains technical, requiring users to navigate wallets, gas fees and complex protocols. AI integration can lower these barriers by automating decision‑making and enabling natural‑language interfaces, paving the way for DeFAI.

AI can process vast on‑chain and off‑chain data and deliver insights that help users build algorithms, manage risk and optimise yields. EOSI Finance embraces these trends by combining DeFi’s openness with AI‑driven trading tools. Importantly, we present AI tools as assistive technology, not as a guarantee of returns or a substitute for personal judgement.