Layer 2 privacy network COTI has unveiled the first perpetual futures DEX (Perp-DEX) to launch on its network. PriveX provides users with a host of sophisticated trading strategies implemented with the aid of AI agents. COTI is billing the launch of PriveX as a pivotal moment in the growth of DeFAI – that’s AI-powered decentralized finance.
The integration of artificial intelligence DeFi has the potential to transform how onchain traders go about their business. DeFAI, if it takes off, will see autonomous AI agents play an active role in executing and optimizing trading strategies. COTI’s latest initiative, PriveX, taps into this narrative by merging intent-based trading with AI-driven automation, paving the way for more sophisticated market strategies.
Trading With Intent
PriveX operates as an intent-based Perp-DEX that allows both human traders and AI agents to execute trades onchain. Unlike traditional decentralized exchanges, where users manually submit orders, intent-based trading lets users define conditions under which trades should execute, allowing AI agents to handle execution dynamically. This shift reduces manual effort, optimizes execution, and enables traders to automate complex strategies.
While PriveX operates on COTI’s scalable infra, it leverages deep liquidity from centralized exchanges such as Binance. This hybrid model has been designed to combine the security and transparency of decentralized trading with the liquidity depth of traditional markets. As decentralized trading platforms continue to mature, access to CEX-level liquidity onchain is becoming a growing trend, allowing DeFi to match anything that CeFi can muster.
AI Agents Are Everywhere
AI-powered trading is rapidly making inroads into DeFi, shaking up the onchain trading landscape while birthing yet another vertical for users to master. AI agents on PriveX can perform such tasks as monitoring market conditions and adjusting trading strategies in real time as well as executing trades based on predefined parameters without human intervention.
But PriveX agents go further still, allowing their creators to give them a voice and set them free on social media where they can build up a following while driving interest in the native token attached to each one. PriveX initially started out on Base network, incidentally, but its migration to COTI appears to have been driven by the additional privacy features the L2 supports.
Many trading algorithms rely on proprietary strategies that traders are hesitant to disclose. PriveX’s migration to COTI should introduce privacy features that enable traders to execute proprietary strategies without exposing sensitive data. This decision aligns with a broader industry shift towards bolstering onchain privacy, particularly as institutions explore onchain financial products.
A Brave New World of Automated Finance
The rise of AI-driven DeFi has broader implications for automated trading and risk assessment in decentralized markets. While DeFi has traditionally been associated with use cases such as liquidity mining, yield farming, and DEX swaps, the introduction of AI agents could fundamentally change this market dynamics, shifting it towards a highly automated trading environment.
If this vision comes to pass, the lion’s share of the spoils will go to the onchain users who work smarter, not harder. In other words, it’ll all be about the capabilities of the bot you got. AI agents can theoretically do anything humans can do onchain – faster and more efficiently. For example, they can dynamically rebalance liquidity pools based on market demand and optimize risk-adjusted returns for users.
Other use cases for agents include leveraging historical onchain data to predict market movements and optimize trade execution. As AI agents become more common in crypto markets, competition between chains and agent launchpads is likely to become fierce. In debuting PriveX, COTI has gained early mover advantage in the race to automate everything.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
