AI agents are coming for DeFi — Wallets are the weakest link
AI agents are becoming crucial for decentralized finance (DeFi) by managing liquidity and executing trades continuously. Current wallet infrastructure primarily relies on manually approved externally owned accounts, which limits automation and poses risks. Recent incidents, such as the loss of 563 Ether due to an exploited oracle vulnerability, highlight systemic vulnerabilities in automation infrastructure. Existing wallets lack the capability to understand user intent or enforce programmable permissions, creating a dichotomy between manual control and total delegation to third-party systems. To enhance security and scalability, programmable wallet infrastructure is necessary, allowing users to maintain control while automating strategies. This infrastructure can enable broader access to advanced DeFi strategies and streamline cross-chain operations. As institutional interest in DeFi rises, secure automation with verifiable guardrails will be essential for user trust and operational integrity. The future of DeFi hinges on developing robust infrastructure that supports AI agents effectively.
