Chainrisk 2024: A Year of Innovation & a Bold Vision for 2025

Hello Web3 Community,

As we wrap up an exhilarating 2024, we’re excited to share our journey of building an end-to-end economic security suite for DeFi. This year has been all about turning ideas into reality—developing breakthrough technology, forging strong partnerships, and learning invaluable lessons along the way. Here’s a look back at our 2024 milestones and a glimpse into our ambitious plans for 2025.

2024: A Year of Breakthroughs

Revolutionizing DeFi Risk Management

‍In 2024, our mission was to build the most advanced risk management solution for DeFi, and we’re proud to say we delivered. Our system now runs 12 million market simulations per cloud region—50 times more efficient than our nearest competitors. This performance leap is already setting new standards in the space.

Collaborations that Matter

‍We’ve teamed up with key players in the ecosystem, including Compound, Arbitrum, Zerolend, Fuel Network, Angle Labs, Superlend, Joule Finance, and Gyroscope. These collaborations have helped us validate our technology and drive real-world impact while maintaining a customer success rate of more than 99%.

Introducing Risklayer‍

A standout moment this year was the launch of Risklayer—our infrastructure built on Eigenlayer that provides verified, quantified risk scores for every DeFi investment vehicle. Think of it as the “Moody’s for Crypto.” With over 20 partners already tapping into its insights, Risklayer is fast becoming a go-to tool for understanding and managing risk in the DeFi space.

Early Revenue & Cutting-Edge Research‍

We hit the ground running by generating revenue starting in Q3, closing 2024 with $200K in realized revenue. Alongside this, our research efforts—spanning our simulation engine, novel VaR methodologies, and advanced DeFi risk frameworks—are laying the foundation for future innovations.

Key Learnings from 2024

Our journey wasn’t just about technology; it was about understanding what makes the Web3 ecosystem tick:

• Value capture is not in commercialising risk data. It lies in what can be built on top of that data. 
• Humans don’t understand risk, as much as they understand returns.
• Risk is highly subjective and highly social; something that is statistically risky might not be socially risky to a person. 
• These suggest the requirement of subjectively attributable autonomous agents.

The DeFAI Trilemma: A Balancing Act

At its core, the DeFAI Trilemma exposes the fundamental tensions in AI-driven DeFi:

• DeFi users need risk-managed positions
  To mitigate volatility, liquidation risks, and optimize capital efficiency.
  
  
• DeFi scaling needs AI primitives
  For automation, liquidity optimization, and capital efficiency to solve the UX issue of DeFi.
  
  
• AI agents in DeFAI need to be risk-intelligent
  By integrating on-chain analytics, adversarial modeling, and predictive risk frameworks to manage positions based on ROI and Risk.

Yet, current solutions fall short.

• User Friction -
  68% of DeFi users abandon platforms due to complexity and poor UX
  
  
• Flood of Autonomous Bots -
  Autonomous bots have exacerbated volatility, increasing liquidations by 40% QoQ in the past. Thus depicting lack of actual agents that are trained on LaR, VaR and distributions of volatility

There’s no silver bullet. 

Introducing AFI: The Agent Orchestration Layer for DeFi

Even as DeFi’s Total Value Locked (TVL) has soared—with peaks reaching $300B—its full potential remains largely accessible to tech experts and institutional players. That’s where Artificial Financial Intelligence (AFI) comes in. AFI is a coordination infrastructure for AI agents to optimise capital, reduce information asymmetry, and scale DeFi. 

What Makes AFI Stand Out?

• AFI LLM Executor:
  A domain-specific execution layer that translates user intents into precise DeFi strategies, optimizing for capital efficiency and risk
  
  
• AFI Intelligence:
  An agentic infrastructure enables anyone to deploy autonomous agent swarms that gather on-chain data, assess economic risks, and run adversarial modeling to mitigate exploits and systemic failures.
  
  
• AFI Smart Wallet :
  A risk-aware execution wallet that simplifies DeFi with automated execution, real-time monitoring, intelligent position management, and secure session-based signing.

Looking Ahead: Our 2025 Roadmap

Q1 2025 – Launching AFI Litepaper & Growing the Ecosystem

The first quarter will mark a pivotal moment as we launch AFI V1 on the testnet. Here’s what you have in store:

• AFI Litepaper Launch:
  Dive into our comprehensive lite paper that details our vision, technology, and roadmap for the future of AI-driven DeFi.
  
  
• Enhanced Platform Tools:
  We’re integrating the AFI Simulator and AFI Price Predictor into the platform, enabling dynamic strategy simulations and predictive insights for better decision-making.
  
  
• Closed Alpha Launch:
  Experience the AFI platform firsthand in our closed alpha, designed to bring together builders and DeFi Degens to shape the future of DeFi.
  
  
• On-Chain Credit Risk Score Integration:
  We will be integrating On-Chain Credit Risk Score to enhance risk assessment capabilities, ensuring smarter and efficient financial decisions.

Stay tuned as we build a vibrant ecosystem that combines cutting-edge technology with robust risk management to redefine decentralized finance.

Wrapping Up

2024 has been a landmark year for Chainrisk—a year defined by innovation, collaboration, and learning. As we look to 2025, our commitment to driving DeFi’s evolution remains stronger than ever. We’re excited to continue building tools that empower everyone in the Web3 space to navigate risk and seize new opportunities.

Thank you for being a part of our journey. Here’s to a groundbreaking year ahead!

Stay curious, stay secure,
‍Arka & Sudipan
Founders, Chainrisk