In the fast-evolving world of decentralized finance (DeFi), a new player is stepping up to change the game: AI agents. If you're new to this, DeFi refers to financial services built on blockchain technology, like lending and borrowing without traditional banks. Total Value Locked (TVL) is a key metric here—it measures how much crypto is stashed in these protocols. Right now, DeFi TVL sits at a whopping $200 billion, with heavy hitters like Aave at $66 billion (an all-time high), Morpho at $10 billion, Pendle at $8.6 billion, and Fluid at $3 billion.

But here's where it gets exciting: DeFAI, or DeFi powered by AI, is emerging with its own TVL of around $50-60 million—and it's growing fast. Projects like Almanak lead with $16 million, Giza at $15 million (plus $1 billion in volume), and ZyFAI at $3 million ($100 million volume). These AI agents route funds through established DeFi platforms like Aave, Morpho, Compound, and Fluid, focusing on AI-optimized lending. Soon, they'll automate Pendle yield optimization and trading strategies too.

So, what does this mean? As 0xJeff puts it in his recent thread, AI agents are becoming the new interface for DeFi. They redirect TVL to the best protocols while hiding the complicated user interfaces (UI/UX) that often scare off newcomers. Imagine telling an AI, "Maximize my yields," and it handles everything—finding the highest returns, managing risks, and executing trades on-chain.

Today, $1 in DeFi might generate $0.05 to $0.10 in yields. With AI optimization, that could double to $0.10-$0.20. Agents will handle more transactions as DeFi and AI adoption grows, potentially 10x-ing activity by making it simpler and more accessible. This ripple effect? Ethereum (ETH) prices up, DeFi booming, and DeFAI soaring.

Projects to watch include Almanak, Giza, and Cod3x. They're at the forefront, turning complex strategies into automated, efficient processes. If you're a blockchain practitioner, dipping into DeFAI could supercharge your portfolio—think smarter lending and yield farming without the hassle.

As AI integrates deeper into blockchain, expect DeFi to become more inclusive. No more wrestling with clunky dashboards; agents will do the heavy lifting. Stay tuned—this is just the beginning of a yields revolution.