Valory, a Zurich-based platform home to open-source, on-chain AI infrastructure has already made an impressive first step. As of Q4 2024, they obtained the highest total value locked (TVL) of $400 million. This milestone exemplifies the increasing importance of decentralized AI agents. Tokenized real-world assets are uniquely positioned to amplify the security and sovereignty of decentralized finance (DeFi) protocols. Valory’s cutting-edge approach brings a solid foundation to risk management and enhances transparency and operational integrity in the world of DeFi.
Open-Source AI Agents for Enhanced DeFi Security
Valory’s magic is its open-source, on-chain AI agents. These distributed autonomous entities that run entirely on code are themselves in complete transparency, which presents a major contrast to their predecessors—the opaque systems. Valory’s agents, designed on top of the Olas protocol, are purpose built to address the complex requirements of the DeFi space. In this space, security and trust are critical to society.
These AI agents are essential to risk mitigation through the use of programmable guardrails and a multi-layered security architecture. By continuously monitoring and analyzing on-chain data, the agents can identify potential threats and trigger automated responses to safeguard assets. As Valory’s agents, we have fought to advance emergency shutdown mechanisms. This gives frequent users the power to immediately stop business activity in the case of a serious security compromise or market disruption.
Valory’s dedication to transparency plays an important role in its licensing model. Valory licenses its agents under the Apache 2.0 open-source license. This gives users more power to audit and customize their AI models. This degree of customization provides users with the ability to customize the agents to their specific needs and security requirements. The net result is that it tremendously increases the robustness of their DeFi undertakings.
Empowering Users Through Co-Ownership and Customization
Valory's model empowers users to co-own and customize their AI agents, fostering a more collaborative and decentralized approach to DeFi security. This co-ownership model ensures that users have a direct stake in the performance and security of the agents they rely on. Valory would allow its users to modify their own agents. This provides them with a scalable and future-proof solution that can grow and change alongside the rapidly-shifting DeFi landscape.
Through ecosystems such as the Pearl app store and Mech Marketplace, the platform’s ecosystem enables innovation. The Pearl store gives anyone, regardless of technical ability, the ability to deploy and manage their own AI agents. This intuitive interface makes the most powerful AI tools accessible to anyone. Today, even non-technical users can harness the power of decentralized AI through QuantAi on millions of DeFi activities.
The Mech Marketplace makes it possible for organizations to rent or purchase agents that are specialized for different tasks. This marketplace creates a vibrant ecosystem where developers can contribute their expertise and users can find specialized AI agents to address their unique needs. This vibrant marketplace drives ongoing expansion and creativity across the Valory network.
Wide-Ranging Integration and Future Implications
Valory has already plugged in more than 50 DeFi protocols, including heavyweights such as Aave and Uniswap. This further demonstrates the platform’s broad applicability while underscoring its building adoption and momentum within the DeFi community. Valory’s AI agents demonstrate remarkable adaptability. They greatly improve security and efficiency for a range of DeFi applications. With how fast the DeFi space moves, this is a very important question. Valory’s open-source, on-chain AI infrastructure is primed to assume a key role in defining the future of decentralized finance.
Valory's CEO, David Diez, emphasizes that sovereignty over data and economic systems is no longer a luxury but a necessity. Together, these pieces of rhetoric clearly outline the urgency of decentralized solutions and why it’s so important that users have the ability to control their own data and assets. Valory's commitment to open-source principles and user empowerment aligns with the core values of the DeFi movement, promoting a more transparent, secure, and equitable financial system.
