Original Title: AI Trading with DeFAI: Welcome to the Next Era of On-Chain Automation

Original Author: @danielesesta, DeFAI Researcher

Original Compilation: zhouzhou, BlockBeats

Editor's Note: The future of DeFAI is set to revolutionize the way DeFi trading is conducted by transforming simple text commands into executable on-chain strategies through AI. Whether it's dollar-cost averaging (DCA), take-profit and stop-loss, or volatility management, the system can execute precisely without manual intervention. It simplifies complex trading strategies, allowing ordinary users to enjoy hedge fund-level tools, truly achieving "set it and forget it."

The following is the original content (reorganized for readability):

One major criticism of decentralized trading is its lack of mature trading tools compared to traditional finance and even top centralized exchanges. In the past, DEX traders often had to keep a constant eye on the screen, ready to click "buy" or "sell," while automated methods were extremely limited, with even basic stop-loss mechanisms not being intuitive to implement on-chain.

DeFAI (AI + DeFi) and Hey Anon were born from this need. These platforms utilize AI-driven smart agents to implement complex trading strategies based on conditions without human intervention. Ultimately, users can enjoy advanced features comparable to or even surpassing those of centralized trading platforms, truly bringing automated trading, risk management, and conditional logic into the decentralized trading world.

Limitations of Existing Decentralized Trading

• Limited tools and interfaces: Although DEX has developed rapidly, it still lacks the advanced features of centralized exchanges— even when offering limit orders, the operation can be cumbersome, and advanced triggering mechanisms such as trailing stop-loss, ATR position management, and tiered DCA are largely absent.

• High reliance on manual operation: Traders often need to closely monitor market conditions to execute entry or partial take-profit actions in a timely manner. If they step away from the screen and miss a selling opportunity, they can only blame themselves.

• Insufficient risk management: Current risk control methods mostly revolve around basic operations like "manually setting stop-loss" or "reducing position size." However, in real markets, especially with meme coins or newly launched tokens, volatility is extreme, and liquidity changes rapidly, necessitating more refined risk response mechanisms.

These issues make it difficult for many users to fully engage in decentralized trading, despite the permissionless nature of on-chain trading offering significant autonomy, innovation, and global participation.

DeFAI: Disrupting the Game Rules of Decentralized Trading

DeFAI combines AI logic with DeFi smart contract interactions, and the architecture built by Hey Anon can:

1. Automatically execute on-chain trades based on conditional events without human intervention;

2. Allow ordinary users to easily create complex AI trading strategies through simple natural language commands (e.g., "buy X if Y happens");

3. Integrate advanced risk management systems to lower the operational threshold and potential risks of DEX trading.

This transformation will bring unprecedented intelligence and convenience to decentralized trading.

From Commands to Executable On-Chain Strategies

One of the most notable features of Hey Anon's AI architecture is its ability to convert simple English commands into actual executable on-chain actions. Traders do not need to switch between multiple interfaces or write custom scripts; they can simply describe their strategy in one sentence, such as:

"Sell half when Coin A profits 50%, set a trailing stop-loss at 2x ATR for the remaining portion, and exit completely when the increase reaches 300%."

The AI agent will automatically handle each step, from price monitoring to trade execution, even across chains, simplifying the entire process.

Advanced Tools Within Reach

1. DCA (Dollar-Cost Averaging) Buy Strategy

Dollar-cost averaging is a proven investment method, but decentralized platforms have long faced limitations in automation. Hey Anon offers the following DCA methods:

• Fixed time intervals: "Buy $50 of Token Z every 4 hours."

• Price triggers: "If the price retraces 10% from the previous high, buy an additional 10."

• Volatility-based DCA: "Increase buying frequency when volatility exceeds a set threshold to capture lower prices during downturns."

• Portfolio-based DCA: "Daily purchase of new memecoins using 2% of stablecoin assets, but only for tokens with liquidity exceeding a set threshold."

These triggering mechanisms reduce the uncertainty of manual operations, with the AI agent monitoring the market around the clock to ensure no trading opportunities are missed.

2. DCA (Dollar-Cost Averaging) Sell Strategy

An orderly exit from the market is equally crucial, and Hey Anon provides various intelligent selling methods:

• Price target triggers: "Sell 25% at +50%, another 25% at +100%, and liquidate the remaining portion at +200%."

• Trailing stop-loss DCA: "Automatically adjust stop-loss ranges based on token volatility and gradually sell."

• Time-based batch selling: "After reaching target profits, sell in batches over a fixed time (e.g., within 1 hour) to reduce slippage or price impact."

3. Risk Management and Advanced Strategies

In the highly volatile world of on-chain trading, risk management is crucial. DeFAI offers advanced risk control features:

• Dynamic position adjustment:

"Reduce position size by 50% if ATR (Average True Range) doubles."

"Increase holdings when market volatility converges and liquidity is healthy."

• Kelly Criterion:

Calculate the optimal fund allocation ratio based on historical win rates and expected risk-return.

• Time/event-based exit strategies:

"Close 30% of positions 10 minutes before a Federal Reserve announcement."

"Sell linearly over the next 5 minutes if a token is listed on exchange X."

4. Liquidity Monitoring:

"If daily trading volume falls below 30% of the average, or buying slippage exceeds 5%, stop purchasing."

Imagine you have such a strategy:

"Monitor token $X, DCA $69 every 420 seconds. If the price retraces 80% from the previous high, switch to buying every 69 seconds until the position reaches $6,900. Set an initial trailing stop-loss at 0.5x ATR, and if in profit, expand to 2x ATR. Sell the initial principal when profits reach 120%, and liquidate completely at 300%. If ATR doubles while in profit, reduce position by 30%. If the token is listed on exchange Y, sell 69 linear transactions within 5 minutes."

In a traditional environment, executing such a strategy would require manual monitoring, setting numerous limit orders, or relying on third-party bots (which often have trust or reliability issues). But within Hey Anon's DeFAI system, all these operations can be completed through a simple conversation, with the AI agent automatically converting each condition into a series of on-chain execution actions.

Redefining Decentralized Finance

The impact of this AI revolution in the DeFi space cannot be underestimated:

1. Say goodbye to the constraints of screen monitoring
   Traders can define strategies and let AI handle buying, selling, and risk management without constantly watching the market, freeing themselves from the high-intensity monitoring of meme coins or altcoins.

2. Popularizing advanced trading tools
   Technologies that were once only available to hedge funds (such as volatility-based position management or the Kelly Criterion) are now accessible to ordinary users, significantly lowering the entry barrier.

3. Unleashing trading creativity
   With just one command, users can combine cross-chain operations, token sniping, partial profit-taking, event-driven adjustments, and even multi-token layered strategies— the only limit is their imagination.

4. Creating a safer trading environment
   By implementing strict risk management, the occurrence of liquidation and total loss of funds is reduced, promoting healthier ecosystem development even in the high-volatility environment of new tokens.

Looking Ahead: Infinite Possibilities

DeFAI is not just a set of advanced triggering conditions or a better user interface; it represents a paradigm shift. The entire system is driven by on-chain code and AI logic, strictly executing user-defined commands and possessing evolutionary potential:

• Integrate foundational data (such as GitHub project updates or social sentiment) into triggering conditions.

• Provide advanced analysis similar to professional research institutions, combining high-level data analysis with direct execution capabilities.

• Expand to multi-token or cross-chain strategies, bridging liquidity and reinvestment returns across multiple ecosystems while automatically managing gas fees and cross-chain complexities.

The wave of innovation has already begun. The future of DeFi may be an integrated ecosystem fully controlled by AI agents, encompassing everything from yield farming to token issuance to complex derivatives strategies—without users needing to manually confirm each operation or switch between multiple dApp interfaces.

Hey Anon stands at the forefront of this DeFAI revolution. With a focus on security, clarity, and intuitive AI trading commands, we are ushering in an unprecedented era of automation in the DeFi space.

Conclusion: Imagination is Just the Beginning

The era of 24/7 screen monitoring and manual trading at 2 AM is coming to an end. We are on the threshold of on-chain AI trading, which can:

1. Monitor the market

2. Calculate risks

3. Execute operations on your behalf with extreme precision.

From advanced DCA strategies to complex volatility risk controls, DeFAI makes "set it and forget it" a reality—even in the chaotic markets of meme coins and newly issued tokens.

This is a truly revolutionary change, as it opens decentralized trading to everyone—whether they are beginners seeking safe and stable strategies or experts devising multi-condition, multi-asset trading plans. The best part? You only need to unleash your imagination and use simple natural language commands to create entirely new trading methods.

Welcome to the era of Hey Anon—AI-powered trading that enables any user, regardless of experience, to leverage advanced automated strategies and transform DeFi into a world full of infinite possibilities.

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