In-depth analysis of Wayfinder: AI agents drive the mass adoption of DeFi

This report, authored by Tiger Research, analyzes Wayfinder's innovation in AI-driven DeFi infrastructure and its impact on blockchain accessibility. TLDR: DeFi claims to be accessible to everyone, but its complex usability makes it inaccessible to average investors. From preparing for gas fees to understanding complex protocols, many users forgo promising investment opportunities due to the complexities involved. Wayfinder, an on-chain, purpose-built AI agent system, aims to address these accessibility issues. Without requiring complex technical expertise, users can execute professional-level investment strategies, ranging from cross-chain trades 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 used in various Web3 projects as infrastructure to simplify 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 where anyone can freely participate. However, it requires complex technical knowledge and advanced financial skills. This creates a significant gap between ideal and reality. Chain abstraction and account abstraction have emerged to address 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. Technical improvements alone cannot solve this problem. Users still must understand DeFi-specific concepts. These concepts include AMMs (automated market makers), liquidity pools, and impermanent loss. Therefore, DeFi sets a higher barrier to entry than traditional finance.

Protocol-Level Maturity and 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. Uniswap is the most widely used DeFi protocol. It offers a relatively good user experience. This demonstrates that accessibility issues affect the entire DeFi ecosystem and are not 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 access processes deter 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 entry barriers. 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, with risk of gas fee fluctuations 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 remains an additional challenge. AI technology requires a dedicated on-chain 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 everyday users with access to the complex DeFi ecosystem, without the need for 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 potential. The autonomous on-chain activities of these AI agents could 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 a variety of 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 (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 smooth asset management across multiple chains. The most distinctive feature of Shells 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 or 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 continuously in the future. These include a Yield Finder Agent specifically for yield optimization. This will expand the ecosystem. Wayfinder utilizes a multi-agent system, with each agent validating and collaborating with each other. This makes decision-making more stable and precise. For operations requiring multiple transactions (for example, bridging USDC from Ethereum to Base, exchanging half for wBTC, and depositing both into AAVE), the agent runs a simulation on a virtual network (VNet) before executing the transaction. 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 The Wayfinder Graph is a navigation system that systematically organizes the complex blockchain ecosystem. Google Maps connects the world to road, building, and traffic information in real time, guiding 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 path.

Wayfinder Graph, Source: Wayfinder

At the heart of graph systems are "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, defining 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 a path from scratch each time. They use verified routes to complete tasks quickly and securely. Wayfinder Path, Source: Wayfinder In the future, pathfinding paths will be created and managed by the community. For example, as 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 submissions. Only approved paths are added to the official repository. Approved paths are available to all Shells. When other Shells use their paths, the path creator receives a portion of the fees. Conversely, incorrect paths result in losses. Creators and validators who stake 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 security. Wayfinder aims to ensure scalability through community collaboration, rather than taking the slow and limited approach of direct integration with all protocols. Google Maps users can directly register places or leave reviews, which improves 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 are freed from repetitive tasks, allowing them to focus on more complex designs. The following case studies 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 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. It finds the optimal route and handles token swaps and bridging, providing users with 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 separate native tokens for each chain. They can perform cross-chain transactions efficiently.

4.2. One-Stop Operation for Recurring 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, allowing them to execute complex investment strategies on an ongoing basis without repetitive manual work. Suppose a user requests, "I use $100 to buy BTC weekly through DCA. When the BTC price rises and the collateral value increases, I want to use this 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. The trading agent then sequentially executes the leveraged investment strategy. It deposits its BTC holdings as collateral. It borrows USDC equivalent to a certain 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 liquidation risk increases, it automatically reduces some positions to protect against 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 $8 in fees. The autonomous agent leverages the perpetual contract agent's capabilities to continuously monitor funding rates. When profitability declines or the rate turns negative, it automatically closes the position. Users can generate consistent profits with Wayfinder without understanding the underlying trading mechanics. They don't need experience or knowledge of the Hyperliquid exchange. The agent handles everything. 5. The Future of Accessible DeFi The market opportunity for cryptocurrencies remains concentrated on-chain. For example, Trumpcoin ($TRUMP) first traded on decentralized exchanges earlier this year. It generated tens-of-fold returns 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 the 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 reserved for experts could become accessible to the average user. This could be a significant turning point for the industry. The market has responded quickly to simple improvements in accessibility. Trumpcoin's trading volume saw a tens-of-fold increase immediately after its Moonshot listing. Similarly, Wayfinder can make various on-chain activities, including DeFi, easier. 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) for on-chain environments. Wayfinder plans to provide functionality in the form of an API. This will create a structure 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 abstract complex hardware controls into simple point-and-click operations, Wayfinder will provide a layer that handles on-chain tasks with single natural language commands. This allows each service to offer new features 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 through Wayfinder. They can offer complex DeFi products with more intuitive interfaces, gaining a significant advantage in competing with the DeFi ecosystem. Ultimately, Wayfinder is expected to develop into infrastructure that goes beyond DeFi and improves the user experience of the entire cryptocurrency industry. It can realize DeFi's original ideal of "financial services accessible to everyone."