Frax Finance is in an important development phase, presenting its new stack for AI Agent development and improving its operational Layer 2.
Frax Finance, known for being a decentralized stablecoin protocol, is about to make a quantum leap in the world of blockchain technology. The company has announced the development of a technological stack dedicated to Artificial Intelligence (AI) Agents.
This stack, known as AIVM (Artificial Intelligence Virtual Machine), aims to revolutionize the way AI and blockchain interact, creating an ecosystem where AI agents can operate autonomously and without centralized control points.
Frax Finance and IQ, a pioneering alliance
To make this development a reality, Frax Finance has joined forces with IQ, a sister project. The collaboration between the two entities has resulted in the AIVM, a platform that enables the creation and launch of tokenized AI agents. These agents, owned by token holders, represent a significant milestone in the cryptocurrency and AI space.
César Rodríguez, CTO of IQ, has highlighted the importance of this alliance: “The launch of tokenized AI agents with IQ ATP on Fraxtal’s AIVM will be one of a kind thanks to this joint venture. Sovereign, on-chain AI agents owned by token holders represent a 0-to-1 moment for crypto and AI.”
AIVM innovation
AIVM is the heart of this innovation. This virtual engine is designed to integrate artificial intelligence into blockchain operations in a fluid and efficient manner. The AIVM is located within Fraxtal, Frax Finance’s Layer 2, and uses a consensus mechanism called “Proof of Inference.” This mechanism leverages AI and machine learning models to efficiently validate transactions on the blockchain network.
Imagine a system where AI agents can make autonomous decisions based on real-time data, without the need for human intervention. For example, an AI agent could monitor the cryptocurrency market, analyze trends, and execute transactions on behalf of users, all in a decentralized and secure manner. This level of autonomy not only optimizes efficiency, but also reduces the risk of manipulation and fraud.
Benefits for Users
The implementation of AIVM on Frax Finance will bring a number of benefits for users. Firstly, the autonomy of AI agents means that users can trust that their transactions and operations are executed efficiently and securely, without the need for centralized intermediaries. This not only reduces costs, but also increases the transparency and reliability of the system.
Furthermore, the AIVM will enable the creation of new AI-powered projects. For example, a decentralized finance (DeFi) project could use AI agents to automate the lending and borrowing process, reducing default risk and optimizing interest rates. Another example could be a data marketplace where AI agents negotiate the buying and selling of data in real-time, maximizing value for all participants.
Frax Finance sets its sights on moving forward in 2025
The development of the AIVM is a crucial part of Frax Finance’s ambitious plan for 2025. The company aims to become the decentralized central bank for cryptocurrencies, and the AIVM is a fundamental step in that direction. The 2025 vision includes innovations such as the Frax Universal Interface (FUI), which seeks to simplify and scale decentralized finance for broader adoption.
Sam Kazemian, founder of Frax Finance, has expressed his enthusiasm for this project: “Our 2025 plan is a bold step toward creating the infrastructure that makes DeFi intuitive, accessible, and scalable for the next few millions of users entering the world of crypto.”
The 2025 roadmap also includes the rebranding of the FRAX stablecoin and a hard fork to enhance Fraxtal’s capabilities. These improvements will not only strengthen the network, but also open up new opportunities for innovation and growth.
