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Giza: Building Agentic, AI-Powered DeFi

May 21, 2025

In conclusion

Chat, this isn’t 2021 anymore. The avalanche of on-chain actions accompanied by fancy nomenclature now feels clunky, heavy with age, and out of touch in terms of usability.

Swap. Bridge. Stake. Lock. Monitor your position. Track its health. Jump through countless hoops just to chase yields across DeFi protocols. And not just on a network? But on many? Mr. President, it’s exhausting.

There’s only so much friction our thumbs can endure, only so many tasks the average brain can juggle.

And it’s not just the number of actions that wears people down. It’s the varying degrees of complexity. Every protocol seems to operate by its own logic.

So, even though the user’s end goal is often the same; exploring and maximizing opportunities on a dApp with reduced risk, there’s little to no consistency in how these protocols function. No standard. No shared rhythm, just a fragmented mess that users have to deal with.

While the markets operate 24/7, humans don’t (wel, except when you’re running on ridiculous amounts of stimulants).

This and other cognitive limitations pave the path for inefficiencies in interacting with DeFi. Mistakes are bound to be made, opportunities are certainly to be missed, and errors are sure to occur.

The solution, however, isn’t solely the provision of better UX or UI, such as one-click solutions, zaps (automated actions), abstracted touchpoints, etc. While they do half the job, non-natives are still left in the wilderness of what-the-heck.

DeFi needs a holistic solution to this crisis, as it is also the reason behind slow adoption.

It is based on this premise that we think that artificial intelligence (AI) agents make a strong case as a global-wide, universal solution to human cognitive barriers, beyond web2.

And it is based on this thinking that our attention is, at the moment, captured by Giza’s interesting approach to reconfiguring the user-on-chain dApp dynamic, such that transcends cognitive limitations and takes cognizance of security, user sovereignty, and agent-driven autonomy.

What is Giza?

Giza protocol provides the foundational infrastructure and framework for trustless, permissionless, autonomous, and superintelligent AI agents that transform DeFi interaction for users.  

Giza agents enhance human cognitive abilities in on-chain interactions using an architecture that reduces the complexity of DeFi strategies through standardization, provides security and user sovereignty through smart account integration, and executes them using an efficient decentralized infrastructure.

Source

All of these combined allow Giza’s agents to basically do the work for humans by bringing significant systemic changes to the way we interact with DeFi protocols.

The reality is that these agents provide better results, improved capital allocation and use across dApps on multiple networks, risk mitigation through the isolation of strategies that prevent cascading failures, and advanced innovation as the bottlenecks stifling adoption are removed.

Giza agents are built to intelligently traverse DeFi, making decisions with verifiable decision-making patterns, executing strategies, and managing positions on behalf of users, all while being responsive to real-time market conditions and changes.

What’s even cooler? All of this is executed autonomously around the clock, in a non-custodial manner with efficient security guardrails.

Giza protocol forms the backbone of a new breed of intelligent markets: Xenocognitive Finance.

In this architecture, autonomous, non-custodial agents serve as each participant's high-bandwidth nervous system, ceaselessly sensing, reasoning, and executing functions across protocols.

To better understand how all of this works, let’s explore Giza’s moving parts.

Giza’s architecture

Giza’s infrastructure for autonomous agents can be classified into three layers of architecture, all of which formulate the moving parts for state-of-the-art performance.

  • The semantic abstraction layer
  • The authorization layer
  • The decentralized execution layer
Source

The semantic abstraction layer

We know that Giza provides the infrastructure for agents that can perform specific operations and functions. But for Giza to ensure that its agents can do this effectively for you (users), there has to be some form of coordination, right?

I mean, there are so many protocols existing already, and many more to come (because these VCs behave like AI agents).

So, to achieve coordination, Giza’s infrastructure comes with a semantic abstraction layer, which is a big word to describe a layer wherein there are standardized operations allowing agents to reason naturally and then execute.

This way, rather than creating specialized agents that struggle with the issue of a vast array of protocols with personalized complexities, Giza agents will be able to function on a coordinated basis: many protocols, different networks, but the same operational standard.

The pros of this approach are crisp.

First and foremost, there is clarity. Agents will be able to operate with a higher level of accuracy because isolated complexities of the interaction endpoints (DeFi protocols) are now abstracted through clear financial concepts.

Second, these Giza agents will possess the ability to execute cross-protocol strategies. Say, for example, a looping strategy that traverses multiple LPs on three or more protocols.

Third, as VCs work overtime to proliferate this industry with newer protocols, Giza agents will easily be able to integrate these new protocols while maintaining consistent execution patterns across each integrated protocol.

The agent authorization layer

With the exception of grandmas barging into your room, just about everything else, including Giza agents, need your permission.

Don’t get me wrong, the whole point of Giza agents is to give your brain a break and handle transactions on your behalf. But even they need permission to serve you effectively.

However, here’s the sweet spot. Instead of bombarding users with endless transaction pop-ups for approval, Giza’s agent authorization layer is built on smart account infrastructure, enabling its agents to operate non-custodially through granular permissioning, a system where approvals are finely tuned and highly specific, rather than broad or open-ended.

This is achieved through session keys and programmable authorization policies. The goal is both security and automated efficiency, creating verifiable boundaries for Giza agents while ensuring that users remain in control.

Decentralized execution layer

Giza agents are decentralized through EigenLayer’s decentralized execution infrastructure, allowing for state-of-the-art security architecture for the execution of transactions.

Here’s how it works: A group of network participants known as operators stake the native Giza token, using it as collateral to participate in the network activities of validation and execution, a proof-of-stake model.

If they act maliciously, they are penalized through slashes. Correct executions however, are incentivized through protocol rewards, creating a healthy balance.

The Giza token

As mentioned, the Giza token plays a pivotal role in securing the protocol and ensuring transaction execution through cryptoeconomic guarantees, using EigenLayer’s AVS framework.

But it doesn’t stop there. Beyond aligning operator behavior and incentivizing proper execution, while penalizing malicious behavior using material costs, the Giza token acts as the network’s nervous system, powering a broader spectrum of participation beyond just security and validation.

This spectrum includes users who participate in progressive governance by staking Giza, voting on proposals, and contributing to the protocol’s development.

Giza approaches its governance process in two phases. The first phase of governance will involve a governance council that performs the execution of protocol decisions. In this phase, Giza holders are not idle, they are active in contributing to community forum discussions, and are even involved in off-chain voting.

In the second phase, as the protocol becomes more mature, Giza holders will have an increasingly important and evolving role in decision-making through a delegation system.

The end goal of this two-phased process is to eventually move from an elective system to a more decentralized community control.

Additionally, the spectrum also extends to those who provide liquidity for tokenized Giza agent pools and assist in fee processing to operators and the treasury. Liquidity providers in these pools earn their share of the broader incentive model.

Finally, community curators who evaluate and uphold the quality of deployed Giza agents are also rewarded, reinforcing a high standard across the ecosystem.

The result of this broad spectrum of ecosystem participants and aligned incentives is the creation of a powerful growth flywheel, one that maintains the value generated by Giza agents, drives increased execution volume, boosts protocol fee generation, and ultimately reinforces the protocol’s overall security.

Source

As things progress, more explicit details on the tokenomics of the Giza token will be revealed. However, for now, the potential of the Giza token can be deduced from its carefully designed flywheel and economic model.

Why Giza stands out?

Nothing validates a rollout like real, working proof. Disagree? Just look at Hyperliquid.

Giza stands out for one simple reason, and that is the fact that it works. Its flagship agent, Arma, is a fully autonomous yield optimization agent built to maximize returns on stablecoin deposits across the Base and Mode networks.

Arma doesn’t just sit around. It actively monitors top stablecoin yield protocols like Aave, Compound, Morpho, and Moonwell, constantly scanning for the best opportunities to generate optimized yield. Once it identifies a better option, Arma reallocates capital accordingly, shifting assets to wherever the yield is the juiciest.

And it doesn’t just chase returns blindly. Arma is tuned for capital efficiency, minimizing transaction costs while factoring in risks and security concerns every step of the way.

Source

Does Arma work?

Of course! The metrics are proof that Arma does work. Pre-deployment backtesting proved that Arma delivered an 83% increase in yield within a four-month window, more than any other lending protocol out there.

Arma is targeted to provide 15% APR on stables in May, and that’s not surprising given that in April, it averaged 8.3% APR, and in March, it averaged 9.75%.

These figures on stablecoin yield are higher than anything out there, all thanks to autonomous capital optimization through Arma, a Giza agent.

Furthermore, across all networks, Arma has exceeded $30 million in agentic volume, with over $2.9 million in total assets under agent (AUA), 100k+ in total autonomous transactions, and 25,000+ live personalized agents deployed in just three months, all while having a positive PNL on every trade executed.

It’s important to note that each of Arma’s value-creating transactions was executed with no human oversight, achieving a weekly increase in transaction volume and user acquisition.

Arma is proof that Giza agents deliver profound results useful to multiple parties: retail, institutional players, and even protocols.

For retail users, there is a significant reduction in the cognitive load and technical know-how required to participate in complex DeFi protocols and strategies.

Using Giza agents like Arma, users can sit back and relax, eat a chocolate bar while at it, and deploy Giza agents to carry out sophisticated tasks without giving up their sovereignty.

On the other hand, institutional players can tap into Giza agents as a mechanism for passive investing, deploying them to generate yield without worrying about security risks or cost inefficiencies.

And finally, protocols themselves stand to gain. With Giza agents built on infrastructure that supports seamless cross-protocol interactions, protocols benefit from increased transaction volume, as Giza lowers the barrier for users who may lack the technical skills to participate directly.

Conclusion

Without a doubt, Giza addresses multiple layers of challenges in modern DeFi.

For users, the complexity of DeFi strategies can be overwhelming, and frankly, a major turn-off. Beyond that, the limits of human cognition often hinder performance.

This poses a problem for protocols as well. As user engagement declines, so does the opportunity to deliver optimal capital efficiency and a seamless user experience.

Even sophisticated, non-native players like institutions aren’t spared. They, too, grapple with siloed complexities that make seamless participation difficult.

The foregoing makes a strong case for the need for Giza’s security, sovereignty, and autonomous approach to transform DeFi markets.

Giza introduces Xenocognitive Finance, offering a framework for intelligible agents that are not replacing humans, but enhancing human agency, changing market dynamics, improving cognitive abilities, and creating new, innovative primitives in the big bang.

Given this trajectory, it is indeed not far-fetched to infer that in a couple months there will be a complete takeover in the use of these agents to traverse the minefields of DeFi, just like how Grok and ChatGPT have now become a staple for a large number of Internet users.


Thanks to the OpenServ team for unlocking this article. All of our research and references are based on public information available in documents, etc., and are presented by blocmates for constructive discussion and analysis. To read more about our editorial policy and disclosures at blocmates, head here.

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