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AI-Powered DeFi: The Future of Automation and Liquidity Management
On September 23, Jeremy Millar, Chairman of Theoriq, shared groundbreaking insights on the integration of artificial intelligence (AI) and cryptocurrency during an exclusive interview with Block Media. Millar highlighted AI-powered decentralized finance (DeFi) automation and liquidity management as the most practical and transformative applications of AI within the crypto sphere. According to him, the evolution of AI and blockchain technology is destined to become deeply interwoven as both industries mature.
As a board member of the DIRAC Foundation, Millar provided valuable perspectives on pivotal topics, including DeFi scalability and security challenges, Theoriq’s flagship products Alpha Swarm and Alpha Vault, and the distinctions between speculative and value-driven AI use cases. He also shared Theoriq’s ambitious long-term vision, emphasizing meaningful engagement with the South Korean crypto community.
Introducing Jeremy Millar and Theoriq
Jeremy Millar, Chairman of Theoriq, described the project’s mission: “Theoriq develops back-end protocols and applications designed to merge AI with blockchain, focusing on tangible use cases that create measurable value in the crypto ecosystem.” Rather than pursuing abstract concepts of decentralized AI, Theoriq prioritizes practical innovations that address real-world challenges in cryptocurrency through intelligent automation.
How AI and Blockchain Are Evolving Together
Millar underscored the risks associated with centralized AI systems, such as monopolizing data and perpetuating platform vulnerabilities seen in Web 2.0 ecosystems. He argued that while decentralization is critical, the immediate focus should be on solving operational inefficiencies in crypto using AI.
Two areas that Millar identified as particularly urgent are asset transfers and liquidity management. Here, Theoriq is pioneering AI-driven solutions to optimize liquidity flow and revenue strategies.
Inside Alpha Swarm and Alpha Vault
Alpha Swarm was initially launched as an ensemble of AI agents tasked with providing liquidity. However, variations in user behavior and the performance of deployed AI models posed significant operational challenges.
“This experience led us to develop Alpha Vault,” Millar explained. “Alpha Vault enables users to deposit ETH and receive deposit certificate tokens in return. AI autonomously handles all backend operations within the vault, offering transparency while ensuring efficient liquidity management. Users hold their tokens, and the vault performs the requisite operations seamlessly.”
Overcoming Challenges in AI-Blockchain Integration
Millar identified three major hurdles that AI confronts when working within blockchain systems:
- Incompatible Languages: AI operates in natural language, whereas blockchain transactions rely on private-key infrastructure.
- Resource Limitations: AI algorithms are resource-hungry and difficult to scale in a blockchain environment.
- Security: Ensuring secure AI operations on-chain requires a clearly defined regulatory framework.
To address these issues, Theoriq developed an innovative structure for scalable AI integration on blockchain networks. Their approach enables agents to register and interact at scale while regulating AI activity through on-chain smart contracts. Simplified tools, such as chat-based user interfaces and vault deposit certificates, further enhance accessibility.
Practical Use Cases for AI in DeFi Automation
Millar dismissed misconceptions about AI’s ability to consistently predict Bitcoin (BTC) prices in the short term. Instead, he championed the role of AI in DeFi automation, where its potential to transform crypto asset management is undeniable.
“Concepts like liquidity farming, cross-protocol hedging, and yield optimization are fascinating but exceptionally complex for individuals to manage alone,” Millar noted. “AI can dynamically address variables such as price volatility and hedging strategies in real time. This allows users to optimize their portfolios rather than merely holding assets passively.”
Shifting Focus Away from Speculation
Millar expressed concerns about the speculative frenzy around AI-driven searches for the “next 1000x meme coin.” Instead, he advocated for constructing well-balanced crypto portfolios centered on Bitcoin, Ethereum (ETH), and stablecoins.
“The real opportunities lie in foundational areas: cross-network integration, liquidity optimization, and asset risk hedging,” he added. Theoriq’s goal is to embed AI deeply within the infrastructure of the crypto ecosystem to enhance efficiency and reduce risks.
The Long-Term Vision of Theoriq
Looking into the future, Millar shared an ambitious roadmap for Theoriq: “AI will operate on cryptocurrency networks, and crypto products will become inherently powered by AI. Alpha Swarm and Alpha Vault serve as the initial stepping stones for this vision.”
By combining advanced AI scalability techniques with on-chain smart contracts, Theoriq aims to deliver stable and transparent AI-driven DeFi solutions. These products promise to revolutionize how users interact with liquidity, risk, and yield management across decentralized platforms.
A Strong Partnership with South Korea
Theoriq has cultivated a robust engagement with the South Korean market, where 27% of community participation originates. Millar praised South Korea’s dynamic crypto landscape, citing phenomena like the “Kimchi Premium” as emblematic of the region’s passion for blockchain technology.
“We are privileged to witness the vibrancy of South Korea’s market,” Millar noted. “Our goal is to strengthen this collaboration further through active communication and partnerships.”
The Promise of AI and Crypto Integration
As blockchain and AI technologies continue to evolve, their convergence holds immense potential to unlock groundbreaking efficiencies and innovation. For Theoriq, this means leveraging AI-driven DeFi automation not only to tackle liquidity challenges but also to build meaningful relationships within key markets such as South Korea. By positioning AI at the core of crypto infrastructure, Theoriq is delivering tools that make decentralized finance smarter, faster, and more accessible than ever before.
