AI Agents Lack Credibility and Long-Term Planning in Crypto
If AI agents are the anticipated advancement in crypto, their essential function should include managing wallets to achieve a minimum 30% APY while adhering to a conservative risk profile. This yield would surpass the S&P 500 and necessitate interaction with established DeFi smart contracts that have been operational for over a year.
For example, the AI agent might utilize Pendle to engage in PT yield trades with reputable protocols like Ethena (USDe) or Aave (GHO), avoiding newer, high-risk collateral such as USUAL, which currently offers a yield of 147%. Given the 30% yield target, the agent would steer clear of low-yield options like stETH, currently at 3.2%.
The agent could also consider investing directly in ETH, anticipating a price increase to $5,000, representing a 44% rise from current values. This investment could be complemented by staking on Lido for an additional 3% yield. The agent must remain agile to convert ETH back to a stablecoin during market volatility.
Airdrop farming would not align with a conservative approach due to the extended period between farming and actual airdrops, presenting too much risk. The concept of "Non-KYC AI agents on blockchain rails" has gained traction within the crypto community, yet reliable methods for navigating DeFi through AI remain underdeveloped.
Current AI agents resemble “Wizard of Oz”-style entities without coherent long-term strategies, lacking effective money transfer capabilities. Instead, the market is seeing numerous AI-themed memecoins, virtual chatbots, and infrastructural developments, but true autonomous agents are still in the future.
The present closest approximation to utility-based agents involves those aggregating social media data for alpha feeds, such as aixbt. Despite the prevailing bullish sentiment in crypto, there is skepticism about the credibility of AI agents among investors. Unlike NFTs in 2020, which had a narrative of immutable art pieces, AI agents still struggle to bridge the gap between concept and reality.