Frax Finance and IQ have teamed up to launch a tech stack with a focus on AI agents, drawing on the AIVM model.
Frax Finance, a decentralized stablecoin protocol and associated project IQ, has introduced an innovative AI tech stack. This innovation aims to seamlessly blend blockchain and artificial intelligence (AI). The partnership aims to pave the way for a more autonomous and collaborative future for the Decentralized Finance (DeFi) ecosystem.
Artificial Intelligence Virtual Machine (AIVM) is at the center of this initiative. This model is designed to integrate artificial intelligence (AI) into blockchain operations seamlessly.
This system is housed within Fraxtal, Frax’s Layer 2 rollup. It uses a novel proof-of-inference consensus mechanism that leverages AI and machine learning to validate blockchain transactions efficiently.
Fraxtal started as a Layer 2 blockchain using decentralized sequencers to batch transactions efficiently. This led to the integration of AI solutions and the creation of the AIVM. The platform rewards users for interacting with smart contracts, spending gas, and building a vibrant ecosystem.
In June, Frax Finance partnered with NEAR Protocol to expand its multi-chain capabilities and bring decentralized AI to the crypto world. This collaboration introduces a unique shift, showing how blockchain and AI can work together.
The AIVM enables fully autonomous AI agents free from centralized control. As revealed, the partnership with IQ redefines the potential of decentralized networks. Together, they are breaking new ground in integrating blockchain and AI.
According to Cesar Rodriguez, CTO at IQ, this is more than just a technical advancement. It is a moment that redefines the possibilities of tokenized AI within the crypto space. Tokenized AI agents launched on Fraxtal’s AIVM are the first in the industry.
Token holders will own these sovereign AI agents, marking a significant moment for crypto and AI. The AIVM enables these agents to function autonomously and is also a launchpad for new AI-powered projects under IQ’s Advanced Tokenization Platform (ATP). This initiative reflects a significant leap from concept to execution,
The AIVM development is crucial to Frax Finance’s 2025 Vision Roadmap. This ambitious strategy seeks to establish Frax as the decentralized central bank of crypto. The Roadmap vision promises innovations like the Frax Universal Interface (FUI) to simplify and scale decentralized finance for broader adoption.
Frax’s founder, Sam Kazemian, sees this as essential to making DeFi intuitive and accessible for billions of users worldwide. The roadmap also includes rebranding the FRAX stablecoin and a hard fork to enhance Fraxtal’s capabilities.
Frax Finance and IQ are working together to bring big changes to decentralized technology. By combining AI and blockchain, the AIVM transforms transactions validation models and allows autonomous AI agents to work in new and exciting ways.
This is a major step forward, showing how AI and blockchain can shape the future of decentralized systems.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
