This report, authored by Tiger Research, analyzes Wayfinder's innovation in AI-driven DeFi infrastructure and its impact on blockchain accessibility.

TL;DR

• DeFi claims to be open to everyone, but its complex usability makes it inaccessible to ordinary investors. From preparing for gas fees to understanding complex protocols, many users forgo promising investment opportunities due to the complex procedures involved.
• Wayfinder is an on-chain, purpose-built AI agent system designed to address these accessibility issues. Without requiring complex technical expertise, users can execute professional-level investment strategies, ranging from cross-chain transactions to basis trading, simply through simple conversations with the agent.
• Wayfinder will expand into API services in the future and is expected to be widely adopted by various Web3 projects as infrastructure that simplifies on-chain complexity. The availability of the Wayfinder API will improve user experience across the entire cryptocurrency industry, making "accessible financial services for all" a reality.

1. Is DeFi truly open to everyone?

DeFi aims to create an open financial ecosystem. Anyone can freely participate. However, it requires complex technical knowledge and advanced financial skills. This creates a significant gap between ideals and reality. Chain abstraction and account abstraction emerged to bridge this gap. These technologies improve the user experience, but they lack standardization. Support for these protocols remains limited. The fundamental problem lies in the learning curve. Technological improvements alone cannot address this issue. Users must still understand DeFi-specific concepts, including AMMs (automated market makers), liquidity pools, and impermanent loss. Consequently, DeFi presents a higher barrier to entry than traditional finance.

Protocol-Level Mature LP Participation, Source: BIS

Research by the Bank for International Settlements (BIS) clearly demonstrates this. In the leading DeFi protocol Uniswap V3, just 7% of liquidity providers control approximately 80% of the TVL (total value locked). These professional users expertly navigate the complex system. They achieve returns 20% higher than average users. This gap exists even within Uniswap, the most widely used DeFi protocol, which offers a relatively good user experience. This demonstrates that accessibility issues affect the entire DeFi ecosystem. They aren't limited to any specific protocol.

The DeFi ecosystem faces clear problems that need to be addressed. It forces existing users into endless learning and decision fatigue. It drives new users away entirely. Complex onboarding processes discourage users, even when attractive investment opportunities exist. As a result, DeFi is becoming the exclusive domain of expert users. This contradicts the original vision of enabling financial innovation through decentralized technology. The promise of universal participation remains unfulfilled. High barriers to entry and poor usability limit its potential.

2. Can AI solve DeFi's high barriers to entry?

Recent AI breakthroughs have opened up new possibilities for lowering DeFi's barriers to entry. Agentic AI technology has emerged. It goes beyond simply providing intelligence. AI can now act as hands and feet, performing complex tasks. This may be the key to DeFi's mass adoption.

Consider this example. A user requests: "Bridge my ETH from Base to Solana and buy Memecoin BONK." An AI agent analyzes dozens of bridging options in real time. It offers a clear choice:

• Wormhole: $2.50 fee, 3-minute completion time, high security

• LayerZero: $1.80 fee, 5-minute completion time, gas fee volatility risk

Users don't need to learn the complex technical differences between bridges. They simply use the key information provided by the agent to make decisions quickly. Users don't need to manually connect their wallets. They don't need to perform complex transactions. The agent handles everything automatically. It's like having a skilled personal wealth manager handling financial tasks 24/7.

But realizing this vision presents fundamental challenges. Most current AI technologies lack direct blockchain integration. It can't even check wallet balances in real time. Even with direct blockchain node integration, understanding thousands of different smart contracts presents another challenge. Safely interacting with these contracts is complex. Verifying and ensuring protocol security presents additional challenges. AI technology requires a dedicated on-chain intelligent agent system to create real value in DeFi. This is where Wayfinder comes in.

3. Wayfinder: A Dedicated On-Chain AI Agent System

Source: Wayfinder

Wayfinder provides an AI agent system designed specifically for on-chain environments. Unlike general-purpose agents, Wayfinder agents integrate directly with blockchain infrastructure. They automatically perform on-chain tasks. AI models are fine-tuned specifically for blockchain environments. They navigate and utilize DeFi protocols more efficiently than general-purpose models. This provides an environment for everyday users to access the complex DeFi ecosystem without requiring specialized technical knowledge.

Colony: Autonomous AI Avatar Gameplay, Source: Parallel Studios

Wayfinder's origins can be traced back to Colony, an AI-powered survival simulation game developed by Web3 gaming company Parallel Studios. In Colony, AI avatars operate autonomously. They gather resources without player intervention, trade with other avatars, and develop survival strategies. During development, Parallel Studios discovered the potential for these AI agents' autonomous on-chain activities to extend beyond gaming. They could operate in DeFi environments. This discovery led to the development of the Wayfinder project.

Wayfinder consists of two core elements. First, the Wayfinder Shell is an interface that enables users to interact with various specialized agents. Second, the Wayfinder Graph is a navigation system that helps agents find optimal paths in complex multi-chain environments.

3.1. Wayfinder Shell: Your Dedicated DeFi Private Banker

Wayfinder Shell, Source: Wayfinder

Wayfinder Shell (Shells) serves as an interface where users interact with specialized agents to formulate and execute various on-chain strategies. Shells provide role-specific, specialized agents. These agents respond to user requests and collaborate organically. They efficiently handle complex tasks. Shells supports major mainnets including Ethereum, Solana, Base, and Avalanche. This enables seamless asset management across multiple chains.

Shells' most significant feature is that the agent executes direct on-chain transactions through a built-in, dedicated Web3 wallet. For example, a user might request to diversify $100 USDC across tokens that have shown an upward trend on Solana over the past week. The agent uses real-time market data to screen tokens, constructs a portfolio, and directly executes the investment. Users can easily execute their desired investment strategy through a single interface, without requiring complex technical skills.

Wayfinder's agent system consists of four types:

• Transaction Agent: Handles basic on-chain asset transfers and management, including token swaps, bridging, and staking.

• Perpetual Agent: Integrates with HyperCore, the on-chain order book engine of the Hyperliquid Exchange. It supports spot and perpetual contract trading without requiring Hyperliquid knowledge. It also supports various strategies, including leverage setting, position management, and basis trading.

• Contract Agent: Handles all contract-related tasks, from smart contract writing to deployment and analysis.

• Autonomous Agent: Coordinates multiple agents based on user-defined goals. It handles comprehensive roles from strategy development to execution, rebalancing, and risk management.

Various specialized agents will be added in the future. These include a Yield Finder Agent specifically for yield optimization. This will expand the ecosystem. Wayfinder utilizes a multi-agent system where each agent verifies and collaborates with each other. This makes decision-making more stable and accurate. For operations requiring multiple transactions (for example, bridging USDC from Ethereum to Base, exchanging half for wBTC, and depositing both into AAVE), the agents run simulations on a virtual network (VNet) before executing the trade. This allows for predictable outcomes and prevents agent errors or hallucinations. Important transactions require user approval. Users maintain full control over their assets.

3.2. Wayfinder Graph: The Google Maps of DeFi

Wayfinder Graph is a navigation system that systematically organizes the complex blockchain ecosystem. Just as Google Maps connects the world's roads, buildings, and traffic information in real time, it guides users to the optimal route. Similarly, Wayfinder Graph structures the relationships between DeFi protocols, smart contracts, and assets across various blockchain networks. This helps agents perform tasks along the most efficient paths.

Wayfinder Graph, Source: Wayfinder

The core of a graph system lies in "wayfinding paths." Google Maps provides detailed, step-by-step directions for routes, such as "Take the subway from home to Seoul Station." Each wayfinding path works similarly. It defines a specific task step by step. Examples include "Swap ETH to USDC on Uniswap" or "Bridge USDC from Ethereum to Arbitrum." Each path records detailed information, including the required smart contract address, function call method, expected fees, and precautions. Agents don't need to find paths from scratch every time. They use verified routes to complete tasks quickly and securely.

Wayfinder Path, Source: Wayfinder

Pathfinding will be created and managed by the community in the future. For example, when new DeFi protocols emerge, community participants can write and submit paths that interact with these protocols. They must stake PROMPT tokens as collateral. Path validators review the submissions. Only approved paths are added to the official repository. Approved paths are available to all Shells. Path creators receive a portion of the fees when their paths are used by other Shells. Conversely, incorrect paths result in losses. Creators and validators whose staked tokens are slashed. These tokens are used to compensate victims. This structure operates as an ongoing quality management system that goes beyond simple rewards. Staked tokens remain locked even after a path is approved. They act as a safety mechanism, providing an incentive for path creators to continuously manage accuracy and safety. Wayfinder aims to ensure scalability through community support, rather than taking the slow and limited approach of integrating directly with all protocols. Google Maps users can directly register places or leave reviews, improving map quality. Similarly, Wayfinder's community-centric approach allows it to flexibly respond to the rapid changes and complexity of the DeFi ecosystem. 4. A New DeFi Experience Enabled by Wayfinder With Wayfinder, complex on-chain strategies are no longer the exclusive domain of experts. Automated agents handle strategy development and execution. Beginners can easily manage expert-level strategies. Experts can offload repetitive tasks and focus on more complex designs.

The following examples demonstrate how Wayfinder tailors a new DeFi experience for different user levels, from casual users to professional traders.

4.1. Complex cross-chain transactions made simple

One of the most cumbersome aspects of on-chain transactions is pre-preparing different gas fee tokens for each chain. For example, Ethereum requires ETH, and Solana requires SOL. Transferring USDC from Solana to Ethereum requires SOL as a gas fee. Without SOL, users must go through a cumbersome process. They need to bridge USDC from Ethereum to Solana. Then, they convert this USDC into SOL.

Shells' trading agent solves this complexity through the BRAP (Best Rate Aggregation Protocol) engine. The BRAP engine explores multiple liquidity paths, finds the optimal route, and handles token swaps and bridging. Users enjoy a one-stop experience without complex processes. Furthermore, Wayfinder supports unified gas fee processing across multiple chains using only the Base chain's PROMPT token. Users no longer need to prepare a separate native token for each chain. They can perform cross-chain transactions efficiently.

4.2. One-Stop Operation for Repetitive Investment Processes

Wayfinder can execute complex investment strategies that go beyond simple token swaps or bridging. A representative example is a leveraged DCA (Dollar Cost Averaging) strategy. Investors set the conditions once. They can execute complex investment strategies continuously without repetitive manual work.

Suppose a user requests: "I use $100 to buy BTC weekly through DCA. When the BTC price rises and the value of my collateral increases, I want to use the surplus to borrow additional funds to buy more BTC." The autonomous agent first analyzes the real-time interest rates and TVL of multiple lending protocols (such as Aave and Compound). It selects the optimal protocol.

Then, the trading agent sequentially executes the leveraged investment strategy, depositing its BTC holdings as collateral. It borrows USDC equivalent to a percentage of the collateral value. It uses the borrowed USDC to purchase additional BTC. It again deposits the purchased BTC as collateral. This process repeats. Even with an initial investment of just one BTC, a user can operate a position equivalent to 3-4 BTC.

The agent executes the strategy within the risk parameters set by the user. It continuously monitors conditions, such as a maximum leverage of 3x and a -10% loss limit. When the market declines, it tracks the collateralization ratio. When the risk of liquidation increases, it automatically reduces some positions to prevent risk.

4.3. Professional-Level Trading for Beginners

Basis trading is an arbitrage strategy that exploits price differences between spot and futures markets. It can generate stable returns, particularly through funding rates. However, this area has been the exclusive domain of institutional or professional traders, requiring understanding of complex mechanisms and 24/7 monitoring. Wayfinder's perpetual contract agent is integrated with Hyperliquid's on-chain order book engine, "HyperCore." This provides an environment for ordinary users to easily utilize these strategies. For example, a user requests, "Execute a basis trade based on the funding rate of HYPE tokens." The trading agent transfers the user's assets to a Hyperliquid wallet generated within Shell. The perpetual contract agent purchases HYPE tokens in the spot market and simultaneously opens an equal-sized short futures position. This creates a structure that simultaneously holds a long (spot) and a short (futures) position. Regardless of market direction, the user can generate profits from funding fees. If the funding rate for a $10,000 position is +0.08%, the user would earn approximately $8 in fees. The autonomous agent leverages the perpetual contract agent's capabilities to continuously monitor funding rates. It automatically closes positions when profitability declines or the rate turns negative. Users can generate consistent profits through Wayfinder without having to understand the underlying trading mechanics. They don't need experience or knowledge of Hyperliquid Exchange. The AI handles everything. 5. The Future of Accessible DeFi Cryptocurrency market opportunities remain concentrated on-chain. For example, Trumpcoin ($TRUMP) first traded on a decentralized exchange earlier this year. It generated tens of times the return for early investors. However, most users struggled to quickly discover its existence. Even if they did, the process wasn't simple. They had to visit exchanges like Jupiter or Raydium. They had to connect their wallets and transfer assets to invest. Wayfinder promises to bridge this gap. Users can interact with AI through conversations. They can easily develop and execute a variety of strategies, from simple token purchases to yield farming and automated rebalancing. Strategies previously handled only by experts may become accessible to ordinary users. This could be a significant turning point for the industry. The market responds quickly to simple accessibility improvements. Trumpcoin's trading volume saw a tenfold increase immediately after Moonshot's listing. Similarly, Wayfinder can make various on-chain activities, including DeFi, more accessible. This can expand the user base and drive market activity. This change could have a positive impact on the expansion of the cryptocurrency industry.

In the long term, Wayfinder has the potential to become an operating system (OS) within the on-chain environment. Wayfinder plans to provide its functionality through an API. This creates a framework that enables various services, such as Web3 wallets, DApps, and exchanges, to easily call and use complex on-chain tasks without having to implement them directly. Just as Windows or macOS abstracts complex hardware controls into simple clicks, Wayfinder will provide a layer that handles on-chain tasks with a single, natural language command.

This enables each service to offer new functionality beyond its existing limitations. For example, MetaMask currently only offers simple exchange functionality. By integrating Wayfinder, users can directly execute complex strategies like "Automatically rebalance my portfolio to 60% ETH, 40% BTC." Exchanges like Binance or Coinbase can also improve their user experience with Wayfinder. They can offer complex DeFi products with a more intuitive interface, potentially gaining a significant advantage over the competition in the DeFi ecosystem.

Ultimately, Wayfinder is expected to evolve into infrastructure that goes beyond DeFi and improves the user experience across the entire cryptocurrency industry. It can realize DeFi's original ideal of "financial services accessible to everyone."

Original link