AI Agents in DeFi: A Vulnerability Threat Requires New Infrastructure

Sean Li, co-founder of Magic Labs, argues that AI agents are poised to revolutionize decentralized finance (DeFi) but require a new infrastructure model that safeguards user control. As AI agents gain prominence in DeFi, automating liquidity management, yield optimization and trading with 24/7 efficiency, the current reliance on traditional wallets faces growing challenges. While advancements in account abstraction and smart contract wallets offer some improvement, most DeFi platforms still rely heavily on externally owned accounts requiring manual approvals. Early attempts at programmable solutions are fragmented and costly, hindering widespread adoption.