Starknet, an Ethereum layer-2 blockchain, is set to introduce artificial intelligence (AI) agents that can autonomously carry out on-chain activities for users. These AI agents, developed by Giza, a company focused on bringing AI to blockchains, will optimize yield and reallocate portfolios. Giza recently raised $3 million in a pre-seed funding round led by CoinFund. According to Renç Korzay, co-founder of Giza, the AI agents will be deployed on Starknet by the end of June, with plans to expand to other chains in the future.
The AI agents will initially focus on yield aggregating, identifying the highest returns and depositing funds into different yield avenues. In later releases, the agents will also act as robo-advisors, determining the best portfolio allocation based on a user’s risk appetite. During the beta phase, Giza will audit and approve agent strategies to ensure security. In the future, the agents will become permissionless through the Giza Protocol, which provides cryptographic and cryptoeconomic security to facilitate a trust-minimized exchange between developers and users.
In addition to optimizing yield, the AI agents can also provide liquidity on decentralized exchanges, make leveraged price bets, and predict price movements. The agents adjust crypto holdings based on the user’s specified strategy. The yield-optimizing AI agents will be the first to be deployed, with other types of agents to follow.
The AI models are built using the Starknet programming language Cairo and utilize Zero-Knowledge Scalable Transparent Argument of Knowledge and zero-knowledge proofs (ZK-proofs) developed by StarkWare. ZK-proofs allow for the verification of complex computations while maintaining user privacy.
Giza co-founder Cem Dagdelen believes that AI agents will become the new application layer for Web3, abstracting away smart contract risks and complexities for users. While initially focused on crypto and blockchain, Giza states that the agents can also be utilized in highly regulated sectors to reduce oversight costs and validate outputs.
There are differing opinions regarding the integration of AI and blockchain. Ava Labs founder Emin Gün Sirer believes that AI-backed smart contract coding is still five to 10 years away but has the potential to onboard billions of new blockchain users. However, Ethereum co-founder Vitalik Buterin has advised caution, stating that while AI can help humans understand on-chain activities, it should not be responsible for enforcing smart contract rules.
Overall, the introduction of AI agents on Starknet aims to enhance the efficiency and effectiveness of on-chain activities, providing users with optimized yield and portfolio allocation while ensuring security and privacy.