Valory: Democratizing DeFi with Decentralized AI Agents

Valory: The Dawn of Decentralized AI in DeFi

AI agents are rapidly transforming how businesses operate, automating tasks and providing valuable insights. However, many existing AI tools suffer from opacity, platform risks, and limited user control. Valory, a core contributor to the Olas protocol, aims to address these issues by pioneering decentralized AI agents for DeFi.

What is Olas?

Olas is a protocol that coordinates and incentivizes the creation of open-source AI agents, owned and operated by the community. These autonomous agents can perform a variety of tasks, including:

• Participating in prediction markets
• Managing digital assets
• Generating content

According to Valory CEO David Minarsch, Olas empowers users to truly own their AI, encompassing the models, logic, and economics behind them.

Pearl and Mech Marketplace:

• Pearl: An agent app store where users can easily run and own AI agents.
• Mech Marketplace: A platform for businesses to offer and hire AI agents.

These agents, licensed under Apache 2.0, are customizable and reusable across different use cases. Valory supports integration with various infrastructure and protocols, including Uniswap.

Security First:

Olas AI Agents use Safe wallets, combining programmable execution with embedded risk controls. Hardcoded portfolio and transaction caps limit potential exposure without hindering autonomy. Users maintain full control, defining agent strategies and protocol access.

Custody and Control:

Users retain custody of their funds through wallets like MetaMask and Trust Wallet. Valory plans to add support for multi-party computation (MPC) wallets for enhanced redundancy through split key access.

Key Takeaways:

• Transparency: Open-source and publicly audited code ensures trust and verifiability.
• Control: Users retain full custody of funds and define agent strategies.
• Security: Integrated risk controls and potential MPC wallet support enhance security.
• Democratization: Olas empowers users to own and control their AI, fostering a more equitable and transparent DeFi ecosystem.

Valory's approach signals a significant shift towards co-owned AI, hinting at the transformative role agents will play in the future.