Top 5 DeFAI Projects to Watch in 2025

Day by day, the world of cryptocurrency is gradually evolving, with innovations on the horizon. The latest technological advancement is DeFAI, which is one of the fastest-growing crypto ecosystems.

DeFAI leverages natural language processing and AI-driven automation to redefine user interaction and efficiency in DeFi.

The top 5 DEFI projects leading the charge are AI16Z, Orbit, Griffain, Mode Network, and PAAL AI.

Understanding DeFAI

DeFAI is the intersection of Decentralized Finance (DeFi) and Artificial Intelligence (AI). This emerging sector uses AI to enhance DeFi applications, making them more efficient, intelligent, and adaptive. 

AI-driven automation, risk management, and predictive analytics are transforming everything from yield farming and lending to asset management and decentralized exchanges.

DeFAI allows users to navigate the ecosystem by using simple commands, like “Swap 3 ETH for USDC” or “Invest in a liquidity pool,” to an AI agent that will determine all the particulars, such as finding the best rates and options. 

They only have to approve the final action, making using DeFi as easy as sending a text message.

Several DeFAI projects are poised to make a significant impact in 2025. Here are the top five projects to watch as they revolutionize user interaction with DeFi.

AI16z

AI16Z is known to be “the first investment DAO led by AI agents.” The project integrates AI with decentralized governance for autonomous investment decisions, executed by an AI agent named Marc AIndressen.

Investors put money in the hands of the AI agent, which invests in different projects to increase the value of the fund’s overall asset; unlike traditional DAOs, it makes decisions without token holders’ votes, reducing biases that come from human interaction.

All AI16z’s financial activities are open source and stored in the blockchain.

ElizaOS, a framework that enables the creation of AI agents tailored to specific tasks, is at the core of AI16Z. 

AI16z’s AI-enhanced investment strategies and smart contract-driven portfolio rebalancing help redefine decentralized wealth management.

Orbit

Orbit allows users to interact with protocols across over 100 chains, including all EVM-compatible networks and layer-1s like Solana, Aptos, Sui Network, and even Bitcoin.

It was created by SphereOne, a cryptocurrency payment platform that secured $2.5 million in funding in 2023. Orbit streamlines the process of entering the cryptocurrency space and executing on-chain transactions with the help of AI agents, enabling users to carry out essential tasks such as:

Swaping and bridging tokens across several chains.

Lending cryptocurrencies to earn interest or access liquidity.

Staking to maximize returns using an advanced AI strategy

Management of portfolios through an AI agent that can track, gather, analyze data, and optimize positions and strategies

Orbit is a game-changer in the DeFi space, providing an intelligent blockchain infrastructure that enhances security, scalability, and automation.

Griffian

Griffain was built on the Solana blockchain by Tony Plasencia, a veteran developer on Solana known for projects like Backan Underdog and Blink.fun.

Griffain offers several types of agents, which are divided into two categories:

Personal agents

This agent is customizable and can search for data, complete general tasks, and interact with blockchain applications.

Special agents

An advanced agent that can perform complex tasks, such as providing in-depth analysis and reports on crypto narratives and trends, delivering news on crypto, simulating complex conversations in different languages, and much more.

All of these AI agents share a common feature: they are built to perform on-chain activities via natural language instructions. For instance, they can execute copy trading, generate memecoins from the ground up, streamline trading operations such as profit-taking strategies, or simply serve as your virtual assistant.

Mode Network

Mode Network brings AI-driven automation to Ethereum Layer-2s (L2), building a fully AI-operated DeFi economy. It’s one of the largest ecosystems, with roughly 129 AI agents executing over 1,600 DeFi transactions collectively.

Some of these AI agents include:

Arma by Giza: Optimizes USDC yield farming.

Brian: Facilitates the execution of transactions and the deployment of smart contracts using natural language.

Sturdy: Uses AI-powered yield-bearing vaults to aggregate and optimize returns.

MODIUS by Olas: supports launching or co-owning AI agents for liquidity farming strategies.

Amplifi: Delivers liquidity across multiple chains and utilizes AI to enhance returns.

Mode Network’s AI-enhanced yield strategies and MEV protection mechanisms make DeFi more efficient and profitable for users.

PAAL AI

PAAL AI is a unique project that focuses on AI-powered DeFi automation and chatbots. It provides AI assistants that help users execute DeFi transactions, monitor portfolios, and optimize investment decisions in real-time.

Its tools comprise of:

MyPaalBot

This personalized assistant can act as a chatbot, moderator, researcher, and community manager. It’s the most basic type of agent, but it can provide tailored insights and recommendations for different tasks.

AutoPaal

A more advanced research and analysis tool that can be used to gain an edge with market insights and predictions for cryptocurrency projects and coins.

PaalX

A decentralized in-chat trading feature that enables users to swap tokens, manage wallets, and view portfolios without leaving the chat interface.

PAAL AI is making DeFi more accessible and user-friendly, bridging the gap between complex financial instruments and everyday users.

DeFAI: The Latest Innovation On The Crypto Ecosystem

The DeFAI revolution is just beginning. These five projects are at the forefront of AI-enhanced DeFi, addressing key challenges such as trading inefficiencies, lending risks, and asset management complexities.

Be on the lookout for these DeFAI projects. They have untapped potential and, if utilized well, can be very profitable.