The Next Big Thing In NFT: The DeFi Infrastructure For Utility NFTs 5649

Big2222

2021 was a ‘Year of Renaissance’ for NFTs. From the mainstream perspective of the market, after the crypto cat project boomed in 2018, NFTs finally in 2021 ushered in a concentrated outbreak where many flourished. On the one hand, Opensea has taken the lead in NFTs trading, forming a blue-chip phalanx of NFTs led by CryptoPunk, BAYC, Coolcat and other projects. On the other hand, GameFi projects represented by Axie Infinity combines NFTs with DeFi, successfully bringing the brand-new economic model of Play to Earn to the mainstream market. In the great bull market, NFTs succeeded in overtaking the curve to attract main market funds, and it has become an important asset class in the blockchain world. Since 2022, the NFTs market has inevitably been affected by the macro market condition. After the frenzy, market participants began to rethink the fundamentals of the NFTs track: What will be the future of NFTs? What will be the next NFTs hotspot?

The current NFTs market can be classified into at least two relatively independent categories: Digital collectibles and utility NFTs. Most PFPs would fall into the former category, whose value comes from the scarcity, hence the valuation is very much subjective. Utility NFTs are quite different as the valuation is supported by their intrinsic value.

GameFi assets are an iconic example of utility NTFs. The value of GameFi assets can be clearly quantified based on the potential cash flow value derived from the P2E tokenomics. Thus, DeFi infrastructure is potentially very relevant to the utility NFTs with a similar significance as to the fungible token assets.

Shape The Markets: An Overview Of DeFi Infrastructure

So how would the DeFi infrastructure be built in the NFTs market? We can look at the DeFi world. Based on the magnitude of significance, we can easily identify the four most essential pillars that support the whole DeFi world: Uniswap, AAVE/Compound, Synthetix, and YFI. But why?

The formation of any financial market would not be possible without the maturity of the following 4 markets First, a market that sufficiently discovers the price of assets is fundamentally essential for the purpose of price provision on all levels of liquidity. Secondly, a market that sufficiently discovers the interest rate of assets that gives an answer to the question “how can we effectively price various levels of risk in this market”. Then, based on the two aforementioned markets, a series of derivative instruments can be created for investors to manage their leverage, thus adding more liquidity to the market. Finally, there comes the aggregator, which gathers the assets and liquidity scattered around the market to lower the barrier to entry of the market. And as a result, more liquidity would be injected into the market. Through the whole process, a basket of ‘mainstream assets and the ‘anchor of value’ (DAI or USDC) would also be discovered and widely adopted.

Available DeFi Infrastructure for Utility NFTs

Compared to the more established DeFi markets, infrastructure for utility NFTs. OpenSea being the primary NFTs marketplace, the trading mechanism, however, is based on order book model. The efficiency of such a matchmaking mechanism is low. It might be a viable solution for low liquidity digital collectibles with subjective valuation, but is clearly not servicing the purpose of continuous price discovery for utility NFTs very well.

Since the value of utility NFTs is derived from the inherent value of cash rewards in Play-to-Earn scheme, the mechanism designed for lending and borrowing utility assets is significantly different from the logic of token asset loans. It is more similar to a finance leasing or rental business in the real world where the ‘right to use’ can be transferred without any change of ownership. The implementation of the ‘right to use’ function in a decentralized manner for NFTs has become a big challenge.

Luckily, some projects have already started offering innovative solutions to this problem. We will discuss the pros and cons of each of these projects in several aspects.

NFTFi
Launched in June 2020 by Stephen Young, NFTFi is a marketplace for NFT mortgages. It allows users to deposit NFTs as collateral to borrow crypto assets such as ETH or WDAI.

How It Works?
As an NFTs mortgage platform, NFTFi allows borrowers to deposit accepted NFT assets as collateral for issuing a loan amount from platform. The renter will set the duration schedule of the loan as well as the interest rate, and the borrower has to follow the terms of agreement. The lender is able to claim collateral assets if the borrower breaks the contract.

Strengths and Weaknesses
NFTFi provides a platform for NFT assets holders to collateralize their NFTs and obtain loans in a decentralized way. This platform is implemented by smart contracts with very simple liquidation mechanisms. For example, if collateral asset value fails to cover the borrowing amount of assets, it occurs liquidation.

The platform enables holders of NFTs to access liquidity with collateral. However, the core issue is how to determine the price of NFTs reasonably. The NFTs price market is highly volatile, and due to the poor liquidity of the NFT assets, the floor price of NFTs can drop significantly and trigger liquidation. In this case, the borrowers will suffer a loss very easily. To prevent that, the borrowers will always leave a huge buffer premium, and this significantly reduces the fund-use-efficiency.

We can draw the conclusion that NFTFi’s protocol is not a perfect solution to solve liquidity problems for utility NFTs.

reNFT
reNFT is a leasing platform which NFT assets holders can lease out their assets and receive rental revenue over the lease period of the assets. From the NFTs borrowers’ point of view, if there is a temporary need for some particular NFT assets, instead of buying they are able to rent out suitable NFT assets through this platform.

How it works?
Borrowers are required to clarify the lease schedule in advance and transfer the corresponding lease fee and collateral (the value should be equal to the NFTs assets price) into the third-party escrow smart contract. When the borrower returns the NFTs by requirements, the collateral is also returned. If the borrowers fail to return the NFTs, the collateral will be paid to the renter as compensation. The price of the collateral is obtained by Chainlink from the OpenSea platform. The collateral will also be used to generate interest on the AAVE which increases the fund-using-efficiency.

Strengths and Weaknesses
reNFT proposes a solution for NFT lending and borrowing, which brings value to idle NFTs and enables cash flow. It aggregates assets from renter and borrower through an escrow smart contract, thus allowing asset security for both.

However, the liquidation mechanisms require collateral and occupies high rate in capital to prevent liquidation. Secondly, the renter and borrower must pre-determine the lease schedule and pay upfront. The leasing method is based on peer-to-peer matching which is low efficiency.

IQ Protocol
IQ Protocol is a DeFi tool introduced by PARSIQ whose main role is to provide the framework that enables controlled rentals of assets in the form of Time-limited wrapping.

How it works?
IQ Protocol has not yet officially launched, but from the information in its white paper, IQ Protocol will try to wrap an NFT into a rentable wNFT. The asset will lock up ownership as it is lent, leaving the borrowers of the asset with only the right to use but not the right to sell or transfer. With this approach, there is no liquidation mechanism during the process as it effectively avoids the risk of losing the NFT itself.

Strengths and Weaknesses
The solution proposed by IQ Protocol is well suited to the practical needs of utility NFTs, i.e., the transfer of usage rights while ownership remains unchanged. The entire lending approach will be realized by wNFT liquidity pool, and its lending efficiency is greatly enhanced compared to the P2P approach.

However, since wNFT itself is a Time-limited NFTs derivative, IQ’s leasing solution still requires both renter and borrower to pre-determine the leasing schedule and pay the rental fee in advance when the lending occurs. Another issue with IQ Protocol is for applications that rely on recording on-chain interaction data within the NFTs, such as fully decentralized games. The Wrapping and Unwrapping processes may lead to lost or incoherent on-chain data within the NFTs.

AFKDAO
AFKDAO is a DeFi infrastructure solution for the utility NFTs, introduced by Ben Gothard’s team in late 2021 and announced its SDKs on Github in early 2022.

It was first applied to Play-to-Earn projects which helps to provide a life-cycle lending and liquidity solution for GameFi assets.

How it works?
The solution is based on the new ERC-4610 protocol which is an extensible protocol for NFT assets developed by AFKDAO. Erc-4610 is designed to be fully compatible with the NFT format ERC-721. A holder of an ERC-4610 NFT can issue the right of usage to others, without relying on any third-party platforms/smart contracts.

The approaches of implementation are available for ERC-4610:
1. ERC-4610 native NFT
2. A wrapper solution for the existing ERC-721 NFTs

ERC-4610 also activates another use case of utility NFT assets: on-chain NFT asset management and profit distribution.

In the case of P2E games, the protocol allows the lending of GameFi NFT assets to others, while all the rewards are managed by smart contract, which can be divided among multiple parties in predetermined proportions.

The AFKDAO comprises 3 modules: NFT Launchpad, AFK Aggregator and NFTs Lending Pool. Through these three products, AFK tries to explore a sufficient pricing mechanism for utility NFTs.

Any assets launched on the AFK Launchpad must be ERC-4610-compatible, either being ERC-4610 native NFTs or wrapped into ERC-4610. The Play-to-Earn mechanism must be open on the sale day, and a vault would be required to open in order to make ROI stats available to the community. This enables the buyers to discover a reasonable price range for NFTs before and after the sale, which helps to prevent hype-speculation which sets high barrier to entry of the projects.

The AFK aggregator is a YFI-like fund management protocol but for NFTs. It aggregates utility NFT assets in a fully decentralized way powered by ERC-4610.

When it comes to the P2E game use cases, AFK Aggregator enables the players or guilds to raise NFT assets for the purpose of profit generating and sharing fully on-chain by setting up a ‘vault’ and defining the details of the raise. NFT owners simply need to stake to delegate the guilds to manage their NFTs. All profits will be returned to the ‘delegator smart contract’ for automatic distribution to all parties related onchain, eliminating the need for third-party escrow or private key transfer.

 

The whole delegation process requires zero need for collateral as well as any upfront payment for using the NFTs. The AFK Aggregator also allows the fundraiser to subdelegate scholars, which supports the guild management needs to enable the delegation of assets to multiple addresses at the same time.

The NFTs lending pool is comparable to AAVE or Compound, which is a pooled lending and borrowing liquidity solution for NFT assets. Eligible ERC-4610-compatible NFT assets can be staked into the pool at any time for revenue while borrowers are enabled to borrow NFT assets at any time without any collaterals as long as there are enough NFT assets in the pool. Borrowers would be required to stake relevant tokens as the ‘top-up’ where interest costs will be deducted from (eg. $SLP for Axie pool, $GEAR for PlaceWar Tank pool). The interest rate will be calculated in real-time by block via the algorithm based on the supply and demand situation of the pool. When the top-up by a borrower is depleted by costs incurred, the lease will be terminated.

Strengths and Weaknesses
AFKDAO provides a relatively comprehensive DeFi infrastructure solution for utility NFT assets.

It put forward a preliminary solution to the price discovery and interest rate discovery for long-tailed utility NFTs. AFKDAO adds an access control to NFTs to separate the use right from ownership, which helps to maximize the fund utilization rate and efficiency.

At this stage, the utility NFT market is still in its early stage, AFK’s solution mainly focuses on Play-to-earn games, and more time is needed for big traction. As the scale of the utility NFT market expands, it is believed that products like AFKDAO will gain much larger adoption.

Find out more about AFKDAO on its official sites:

Website: https://afkdao.io/
Telegram: https://t.me/AFKDAOANN
Discord: https://discord.gg/p878yn6yzr
Twitter: https://twitter.com/AFK_DAO

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Multis Team Joins Safe to Build Cross-Chain Smart Wallet Infrastructure 8508

Safe, the leading smart wallet infrastructure, with more than $100 billion in value of digital assets secured, has welcomed the senior leadership team of Multis to the Safe Ecosystem Foundation and completed the strategic acquisition of the Multis source code; Multis is an all-in-one financial software designed for crypto businesses. At the same time, Thibaut Sahaghian, the former CEO of Multis, is set to take on the new role of Network Abstraction Lead as a core contributor within the Safe ecosystem, where he and his team will continue their work towards enabling businesses and individuals to adopt and easily use digital assets every day.

With this move, Safe embarks on the next phase of its mission to simplify, improve, and enhance Web3 user experience. Leveraging their unique collective expertise, the Safe and former Multis team members will collaborate to solve the complexities of cross-chain interaction through network abstraction, with the end goal of enabling users to manage assets across diverse blockchain networks effortlessly.

As crypto usage soars, the demand for faster and more cost-efficient transactions has led to the rise of Layer 2 networks built atop the Ethereum mainnet (Layer 1), aiming to enhance scalability. However, this growth has considerably fragmented the blockchain landscape, complicating the development of user-friendly, on-chain applications and wallets. Addressing this complexity through network abstraction, which simplifies asset management across various blockchains, is crucial for setting the stage for mainstream adoption—a vital goal for the Ethereum community.

“The demand for Safe’s services is skyrocketing, particularly from emerging L2 ecosystems seeking robust infrastructure support to help users manage their digital assets. As we expand, simplifying the cross-network experience becomes crucial,” noted Richard Meissner, co-founder of Safe. “The synergy between Multis and Safe will undoubtedly help us become a staple in these evolving networks and beyond.”

Thibaut added, “Joining Safe is a game-changer for us. We’ve already been harnessing Safe’s robust infrastructure for years, and this is a new journey for us. It empowers us to broaden our mission, tapping into Safe’s expansive platform and extensive user base. Together, we’re set on building an ecosystem where digital assets and applications interact seamlessly across multiple networks, easing the path to adoption and creating a more integrated blockchain world.”

This strategic acquisition marks a turning point for Safe. It aligns with Safe’s recent collaboration with Coinbase-incubated Base to make smart accounts the standard on Ethereum. This announcement furthers Safe’s commitment to providing a seamless and secure foundation for managing assets within exploding L2 ecosystems on Ethereum.

About Safe

Safe (previously Gnosis Safe) is an onchain asset custody protocol, securing ~$100 Billion in assets today. It is establishing a universal ‘smart account’ standard for secure custody of digital assets, data, and identity. With Safe{Wallet}, it’s flagship web and mobile wallet and Safe{Core} account abstraction infrastructure, Safe is on a mission to unlock digital ownership for everyone in web3 including DAOs, enterprises, retail and institutional users.

About Multis

Multis offers a comprehensive financial software solution, empowering DAOs and enterprises to seamlessly manage transactions with both USD and digital assets, across multiple networks. Historically backed by Sequoia Capital and Y Combinator, Multis has been a front-runner in enhancing the crypto business user experience, now set to amplify its impact with Safe.

AirDAO aims for the moon with ‘Star Fleet’ 8772

AirDAO, a community-governed layer-one blockchain ecosystem, is excited to reveal “Star Fleet,” an innovative marketing initiative to launch new products in 2024. The announcement comes in celebration of the fifth anniversary of the AirDAO blockchain, and Star Fleet marks a significant next chapter of growth and development.

The Star Fleet initiative is part of the AirDAO team’s long-term strategic plans to grow the AirDAO ecosystem this year. The initial DeFi products to launch with Star Fleet are a crypto bond market called ”Kosmos,” “Astra,” a decentralized exchange (DEX), and “Harbor,” a liquid staking product.

The AirDAO team’s marketing efforts will increase considerably over the next five months, prioritizing community & ecosystem growth and engagement. AirDAO’s $AMB token will be at the campaign’s center and act as the community’s ticket to join Star Fleet; AirDAO will give rewards in proportion to ecosystem participation.

The Star Fleet campaign will culminate in October 2024 with the single, synchronized launch of three tokens for the three new products. With a unified offering of all three tokens, venture capital funds and the community can get exposure to the next generation of the AirDAO ecosystem with a single investment. AirDAO is raising additional capital to expand the ecosystem and user base, with the end goal of a significant increase in network usage and total value locked (TVL).

AirDAO is a pioneering, community-led, layer-one blockchain ecosystem. The technical backbone of the ecosystem is the AirDAO blockchain. It’s an EVM-compatible layer one with 100% uptime since its launch. It also boasts high scalability, low fees, and rapid transaction times, making it the ideal platform for Web3 products. AirDAO isn’t just building a blockchain — it’s fostering a community where each member’s ideas shape the ecosystem.

Star Fleet is AirDAO’s latest achievement in what’s shaping up to be a pivotal year. It isn’t a small step forward; it’s a giant leap toward AirDAO’s north-star vision of becoming an industry-leading ecosystem.

The new Fintopio DeFi Wallet launches in open beta on Telegram and web app 9160

Fintopio, a Web3 company creating a wallet that enables digital asset sending and receiving via messaging apps, recently launched the beta version of the Fintopio DeFi Wallet. This launch is Fintopio’s first salvo in its mission of improving and simplifying digital asset transactions. The Fintopio DeFi wallet has been launched via Telegram bot and web app, and the company is working on a mobile application for iOS and Android.

Fintopio’s DeFi Wallet is built on Telegram, a messaging tool with 900 million monthly active members. The wallet provides a convenient way for people to send and receive crypto assets, and it also integrates with different DeFi services. Users maintain complete control of their assets by having their crypto stored in their non-custodial wallets.

Steve Milton, co-founder and CEO of Fintopio, noted that “There are a lot of untapped opportunities related to integrating convenient payment options in messaging apps, especially given that these are some of the world’s most widely and frequently used services. At Fintopio, we want to unlock this huge potential with solutions that allow people to send money just like sending a message or an emoji,”

Fintopio is led by Steve Milton, a prominent executive who worked in the field of multinational companies as a high-ranking official at BNB Chain and Binance. Working with him is a 20-member team of experts in the fields of Web3, cryptocurrency, technology, and finance. Fintopio is devoted to changing the crypto payments landscape and becoming a reliable global brand capable of providing cutting-edge financial solutions to individuals and enterprises.

Transforming digital asset payments with Telegram

Fintopio’s DeFi Wallet is a crypto financial solution integrated with Telegram. The app is designed so that users can send crypto payments directly on Telegram, as well as web and mobile platforms. What defines Fintopio as a robust DeFi wallet in contrast to other similar wallets released today is the careful attention paid to user-friendly interfaces and intuitive designs. This is crucial for Fintopio’s efforts to solve the ongoing challenge of making crypto easier and more convenient to use while maintaining the safety of users’ funds.

According to Steve Milton, “Telegram has a great combination of market size and growth trajectory. Even at its current reach, it’s still one of the most downloaded apps worldwide. And it has a young, tech-adept demographic, with 30.6% of its users being in the 25-34 age bracket, making it an ideal foundation upon which we can grow Fintopio especially in a crowded crypto payments space.”

The Future of Crypto Payments

Fintopio acknowledges the digital payments industry’s intricacies, the growth in the demand for new, innovative solutions on the market, and the vast opportunities that innovation can bring to the whole sector. According to the latest forecasts, the global volume of cashless payment services is expected to reach 1.9 trillion transactions by 2025 and double or triple that number by 2032. The fact that payment features have been integrated into major social media and messaging platforms shows that messaging is the new frontier in fintech and crypto solutions.

Through Fintopio, sending digital assets becomes the same as sending a message. Recipients can access their assets via a wallet they already possess, route them to familiar financial institutions, or, if they’re new to digital assets, create a lightweight non-custodial wallet within seconds, all through their Telegram app. This innovation extends the reach of digital assets beyond the confines of the cryptocurrency ecosystem.

Steve Milton explained, “Ultimately, what we’re doing with the beta launch of the Fintopio DeFi Wallet is an opening act that demonstrates what’s possible with messaging-based, convenient crypto payments, as well as what we can build further. Once the Fintopio infrastructure for simple payments through chat apps is built, and it shows significant traction, this innovation will be easier to replicate as a viable payment solution for other major messaging and social media apps. At that point, it’s not that big a leap to take.”

In the first phase of their DeFi Wallet beta starting program, Fintopio is implementing a beta test exercise. The exact process includes reaching out to the Fintopio community and inviting them to inform them of the bugs they encountered or provide them with their recommendations for improvement. In exchange, participants have a chance to gain rewards.

About Fintopio

Fintopio is a software development company at the forefront of digital asset distribution innovation. With its wallet solution, Fintopio simplifies the process of sending and receiving digital assets. The company’s groundbreaking approach is poised to democratize access to digital assets globally, reshaping the landscape of digital transactions.

Fintopio completed a $10 million seed funding round led by a group of private investors from the tech industry, fueling the company’s mission to provide people and businesses with easy, secure, and fast ways to pay. The company was also awarded a CSAP license in Poland.

Plena – The first Crypto Super App to use Account Abstraction announces $5M fundraising milestone 9433

In an impressive display of industry support and confidence, Plena Crypto Super App has successfully closed a $5 million funding round, uniting a broad spectrum of investors and partners in its mission to drive widespread crypto adoption. This formidable coalition includes Big Brain Holdings, DeWhale,GBV, WebWise, Galxe, Normie Ventures, FounderHeads, and more.

Accelerated by crypto giants Cointelegraph and ConsenSys, Plena Crypto Super App has drawn the attention and endorsement of the industry’s most respected advisors and angel investors. This prestigious group includes Ivan on Tech, Trader XO, Trader SZ, Boxmining, The Martini Guy, Michaël van de Poppe, Eric Cryptoman, Crypto Zoran, Nischal Shetty, Anshul Dhir, Crypto ISO, MANDO CT, Anbessa, ASH Crypto, Sjuul | AltCryptoGems, Ted Pillows, Joshnomics, vocado Toast andAlex Belov among others.

Plena’s extensive network of Key Opinion Leaders (KOLs) from every region underscores its position as one of the most universally supported applications within the crypto community. Since its inception in 2021 by Sparsh Jhamb, Yajash Jhamb, Tushant Suneja, and Sayuj Kumar, Plena has been dedicated to simplify the user experience for decentralized applications, with a mission to onboard a billion users to Web3. They pioneered Account Abstraction, setting the stage for a more accessible blockchain ecosystem a year before Vitalik Buterin’s white paper on ERC4337. This innovation marks a significant leap towards making blockchain technology user-friendly and widely adopted.

Throughout 2023, Plena has celebrated numerous achievements, including surpassing 5 million transactions, forming over 200+ Plena Connect partnerships, amassing a community of over 240K+ registered users, and expanding its blockchain integrations. The launch of Plena 2.0 with Chat & Pay feature and the introduction of Plena Smart Portfolios have further solidified its commitment to simplifying the crypto experience.

Looking forward to 2024, Plena is set to expand its chain integrations, launch Super App 3.0, and further develop its Plena Connect SDK across an even broader array of dapps. Additional highlights include the $PLENA Token Generation Event (TGE), and a series of community-engaging Plena Quests.

Plena’s ecosystem stands as a testament to its commitment to innovation and community, providing grants to dApps integrating the Plena Connect SDK. Moreover, Plena has announced its largest airdrop campaign in partnership with DAO Maker, Chain GPT, Decubate, AI Tech, and Viction Chain by Coin98, distributing 2% of its total supply ahead of its eagerly anticipated listing.

About Plena Crypto Super App

Plena Crypto Super App is a crypto super app with a base layer of a wallet designed to simplify and enhance the user experience in the crypto space. By leveraging account abstraction and a comprehensive suite of crypto tools, Plena is on a mission to onboard the next billion users into the cryptocurrency world.

Somnia Launches Betanet, Ushering in a New Era of Interoperability in the Metaverse 9012

Somnia, an L1 blockchain and a set of omnichain protocols, has taken another step towards its goal of a connected metaverse with the recent launch of its protocol Betanet. This significant milestone marks the beginning of a new era in the metaverse, where experiences and assets can seamlessly move across different virtual environments.

Thanks to the technology from MSquared and Improbable, Somnia is able to launch a high-quality Betanet on their protocol, while simultaneously developing the highly scalable and affordable Somnia Blockchain.

Somnia’s omni-chain protocols, known as SOM0, are designed to connect the metaverse into a cohesive ecosystem, enabling unprecedented compatibility and interoperability. The Betanet will test these protocols, which consist of three key components: the ‘Object protocol’ for creating virtual objects that can move through any metaversal experience, the ‘Attestation protocol’ for streamlined validation, and the ‘Marketplace protocol’, which serves as a global liquidity layer for creators to sell digital assets.
“The metaverse is on the cusp of a major transformation, and Somnia is leading the charge with the launch of our Betanet,” Somnia CEO Paul Thomas said. “We’re excited to empower creators and users with the tools they need to bring their visions to life.”

Phase 1 of Somnia’s Betanet, running on the ETH Sepolia Testnet, allows users to bring their digital identities into the Somnia Protocol by creating personalized avatars through a collaboration with Avaturn. These avatars will be compatible with any world or experience built on Somnia, empowering users to attend massive MSquared events like the Twice listening party and MLB Virtual Ballpark.

In future phases, Somnia will collaborate with established NFT projects to give beloved collections a soul in the metaverse by rendering them as 3D avatars for use across interoperable experiences. This initiative will unlock new realms of utility and value for NFT collectors.

Later stages of the Betanet will grant users access to the Metaverse Browser, allowing them to explore the Somnia Ecosystem and the Playground, where they can create virtual spaces, socialize with friends, and import or create 3D objects. The following Testnet phase will introduce a prototype of Somnia’s blockchain, which will act as the foundation for the metaverse’s economy.

To participate in the Betanet visit betanet.somnia.network

About Somnia:

Somnia is creating a virtual society with an L1 blockchain and a set of omnichain protocols designed to bring millions of users into an open and unified metaverse, allowing users to move seamlessly across experiences. Somnia opens up endless possibilities for builders to create content that is portable and remixable content by upgrading existing NFTs. Somnia was developed by the Virtual Society Foundation (VSF), a nonprofit organization initiated by MSquared, and Improbable.

Powerful Duo Joint Hand: aelf is Pivoting to AI Blockchain by Forging Alliance with AgentLayer 8795

aelf, the high-performance Layer 1 blockchain, and AgentLayer, the world’s first decentralised network tailored for AI agents, have formed a strategic alliance to advance the integration of blockchain with artificial intelligence. Together, they aim to launch a pioneering decentralised AI infrastructure and ecosystem. This alliance plans to bring together stakeholders from across Asia — including leading researchers, startups, government bodies, and industry experts — to collaboratively develop and expand AI-enhanced blockchain infrastructure and applications through open innovation.

“This partnership goes beyond technology. It’s a commitment to creating an ecosystem where AI and blockchain coexist and thrive to deliver unprecedented solutions. By harnessing the potential of AgentLayer’s autonomous AI agents with our high-performance Layer 1 blockchain, we are setting the stage for a transformative leap in decentralised AI infrastructure,” shared Auric, Founder of aelf.

“The alliance with aelf is a strategic step towards realising our vision of a permissionless network for AI agents,” commented Prof Yang Liu, Co-founder of AgentLayer. “Leveraging the combined strengths of aelf’s blockchain expertise and our innovative AI protocol, we are gearing up to revolutionise how AI agents operate and collaborate, bringing the vision of decentralised AI to life.”

Strategic Synergy

  • Enhancing Underlying AI and Blockchain Capabilities: As AI and large language models (LLMs) grow in adoption, aelf’s AI-enhanced blockchain architecture allows AI systems to effectively use the blockchain’s computational resources, distributing and rebalancing workloads for complex computations. Integrating AI agents to automate and verify smart contracts also minimises human error and biases, leading to more reliable and equitable contracts. This innovative AI-blockchain architecture will establish a robust foundation for developing a robust suite of Layer 1 (L1) and Layer 2 (L2) projects, decentralised computing networks, and AI agents.
  • AI Innovation at Scale: AgentLayer’s AI integrated with aelf’s decentralised cloud blockchain creates a dynamic, scalable architecture for both the foundational blockchain level and the broader ecosystem. Resource allocation is optimised by analysing network data to allocate resources dynamically and pre-emptively balance loads. This enhanced AI and automation layer in blockchain management enables developers to create and deploy smarter, more efficient decentralised applications (dApps), spurring innovation across the ecosystem. aelf will introduce developer-friendly toolkits to help the community utilise these advanced technologies for data processing, model training, and monetisation within the new aelf AI-blockchain environment.
  • Decentralised Security: The new AI-blockchain architecture ensures data integrity through blockchain’s immutability, protecting data against tampering and revision. Thanks to TrustLLM, AgentLayer’s proprietary foundation model for Web3 security, and a number of state-of-the-art on-chain monitoring and vulnerability detection agents, the blockchain network benefits from optimal threat detection and response. AI agents excel in monitoring the network continuously, detecting anomalies, and pre-empting security breaches with advanced threat response capabilities, thereby safeguarding the network more effectively.
  • AI-Blockchain Ecosystem Support: aelf and AgentLayer will jointly transform AEVOLVE Labs into a pioneering decentralised AI hub for research, incubation, and acceleration to bolster the decentralised AI ecosystem. Additionally, the duo will explore a novel Initial AI Offering (IAO) model designed to facilitate the creation, distribution, and management of AI and Web3 assets securely and transparently.

The Promise of a Decentralised AI Future

The alliance between aelf and AgentLayer, aimed at developing a decentralised AI infrastructure, is set to establish new benchmarks in the AI and blockchain sectors. Together, blockchain and AI technologies can drive forward innovations that are only achievable with each operating in collaboration. This synergy not only improves performance but also opens up new avenues for advanced, decentralised applications and research networks. This pioneering initiative is expected to drive significant advancements in foundational Layer 1 and Layer 2 solutions, networks of AI computational resources and a comprehensive suite of decentralised AI agents.

Stay updated on aelf’s news and engage with the aelf community on:

Website: https://aelf.com
Telegram: https://t.me/aelfblockchain
Discord: https://discord.gg/bgysa9xjvD
For additional information on AgentLayer visit https://www.agentlayer.xyz/
Twitter: https://twitter.com/Agent_Layer

About aelf

aelf, a high-performance Layer 1 featuring multi-sidechain technology for unlimited scalability. aelf blockchain is designed to power the development of Web3 and support its continuous advancement into the future. Founded in 2017 with its global hub based in Singapore, aelf is one of the pioneers of the mainchain-sidechain architecture concept. Incorporating key foundational components, including AEDPoS, aelf’s variation of a Delegated Proof-of-Stake (DPoS) consensus protocol; parallel processing; peer-to-peer (P2P) network communication; cross-chain bridges, and a dynamic side chain indexing mechanism, aelf delivers a highly efficient, safe, and modular ecosystem with high throughput, scalability, and interoperability.

aelf facilitates the building, integrating, and deploying of smart contracts and decentralised apps (dApps) on its blockchain with its native C# software development kit (SDK) and SDKs in other languages, including Java, JS, Python, and Go. aelf’s ecosystem also houses a range of dApps to support a flourishing blockchain network. aelf is committed to fostering innovation within its ecosystem and remains dedicated to driving the development of Web3 and the adoption of blockchain technology.

About AgentLayer

AgentLayer, a pioneering protocol and public blockchain leveraging the powerful OP Stack, is designed to facilitate the coordination and collaboration of autonomous AI agents with human oversight in a permissionless, secure, and reliable manner. It stands out as the world’s first decentralized network for autonomous AI agents, leveraging a Byzantine fault-tolerant blockchain to establish a decentralized registry of AI Services, Agents and Models. Additionally, AgentLayer introduces a new AI currency ($AGENT) to fuel an innovative AI-powered Agent Economy on the L2 blockchain, enabling the minting, deployment, and swapping of AI assets on-chain.

AgentLayer’s innovative protocol not only revolutionizes the coordination of autonomous AI agents but also sets a new standard for decentralized governance in the realm of artificial intelligence. By combining cutting-edge technologies like blockchain with AI capabilities, AgentLayer paves the way for a more efficient, collaborative, and responsible ecosystem for autonomous agents.