Introducing the AI DeFi Co-Pilot on KAIA Blockchain
Since day one, when we built this DeFi Lending Mini Dapp with AI guidance, our goal has been to make AI the core of the platform, simplifying DeFi for everyday users.
We’ve just upgraded our AI agents to go beyond guidance. Now, you can lend, borrow, swap, and loop on KAIA without touching a calculator, making DeFi easier and more accessible than ever.
It works by leveraging our KAIA-MCP plugin, which we previously shipped, allowing the AI to:
- Lend, borrow, repay, and redeem on KiloLend
- Swap tokens and get quotes from DragonSwap V3 DEX
- Wrap and unwrap KAIA native tokens
- Check prices from CoinMarketCap and more
What Is the AI DeFi Co-Pilot?
The AI DeFi Co-Pilot is an intelligent assistant built directly into the KiloLend Mini Dapp on LINE’s KAIA blockchain. Unlike traditional DeFi platforms, it can executes transactions automatically based on high-level instructions.
In the screenshot above, we simply type our request to swap 1 USDT to KAIA. The AI initially looks for a DragonSwap pool for USDT → KAIA, but it wasn’t found, so it checks for USDT → WKAIA. It then swaps to WKAIA first and automatically unwraps it to KAIA.
We cover some more use cases at the end of the article. The AI Co-Pilot makes DeFi simple and accessible by handling all the calculations, executing transactions automatically, and optimizing strategies — so users can focus on their goals without worrying about the details.
How to Setup
Firstly, if you don’t have an AI-agent wallet yet, you need to create one. We’re currently in early access beta, limited to 100 AI wallets. These wallets are hosted in a secure, enterprise-grade isolated AWS environment.
Right now, usage is free, but this may change once KILO tokens are launched, as they will be used to pay for AI inference at reasonable rates. Currently, the AI supports AWS Nova and Claude Sonnet models.
Secondly, once your wallet is ready, you can create an AI agent. You’ll need to choose a character with a distinct personality and select an AI model, then review and confirm your selection. If you want to change the character or model later, you can do so at any time without affecting your conversation history by simply resetting the agent.
When the agent is created, you will navigate to the chat interface, where you can start interacting with your AI Co-Pilot. At the top, there are buttons: one to check your AI-wallet balance and another for settings, which allows you to delete the current conversation or reset the agent.
A session refers to a chat session, and each user currently has 8 sessions available. If you have data in your first session and want to start fresh, you can switch to the second session. Be aware that sessions are limited to 8 at this stage, so you’ll need to manage them carefully.
Getting Started
Getting started with the AI Co-Pilot is as simple as opening the chat. You can ask the AI to check your wallet, view your address, or fetch your current balances. No commands or exact inputs are required — just talk to it naturally.
From there, you can explore what the AI Agent can do. Ask about supported protocols, lending and borrowing rates on KiloLend, or request real-time swap quotes from DragonSwap. The AI will guide you through each step and explain anything you’re unsure about.
After you’re familiar with your agent, you can start lending and borrowing. You can supply 100 USDT to earn yield, and if you need to borrow other tokens, you can simply ask the AI how much you’re able to borrow and what’s safe to borrow.
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There’s no need to calculate exact numbers — the AI handles all of that for you.
Example Use Cases
The AI DeFi Co-Pilot isn’t just for basic lending and borrowing — it opens the door to a wide range of strategies, all handled automatically:
- Leverage Loops: Safely increase your token exposure without selling. The AI handles borrowing, swapping, and re-supplying while monitoring your health factor.
- Yield Optimization: Move your funds to the highest-yield markets automatically, maximizing returns without manual calculations.
- Portfolio Rebalancing: Keep your token allocation in check. The AI monitors your portfolio and executes swaps to maintain target percentages.
- Health Factor Monitoring: Avoid liquidations with automatic alerts and adjustments, so you always stay within safe thresholds.
With these capabilities, your AI Co-Pilot manages the math, risk, and execution — you just set your goals and watch it work.
Buy the Dip (Made Simple by AI)
One of the most powerful use cases of the AI Co-Pilot is increasing exposure to a token like KAIA without selling it. You just describe what you want and the AI handles all the calculations, swaps, and health factor checks automatically.
Example: Growing 10,000 KAIA with a 50% Price Increase
If you simply hold 10,000 KAIA:
- Starting value: 10,000 × $0.10 = $1,000
- Expected price after 1 year: $0.15
- Ending value: $1,500
- Profit: $500
✔ No borrowing
✔ No interest
✔ No leverage
➡ Total benefit: $500
This is the classic “hold and wait” strategy.
If you use the AI Co-Pilot Leverage Loop:
The AI increases your exposure by safely borrowing USDT, swapping it for more KAIA, and repeating until the optimal risk level.
- Total KAIA supplied after looping: 14,985 KAIA
- Value after 1 year: 14,985 × $0.15 = $2,247.75
- USDT debt + interest: $515
- Swap fees: $1.50
- Net profit: $1,261.22
- Extra profit from leverage: $761.22 more than just holding
With the AI Co-Pilot, you never need to manually calculate ratios, APYs, or exposure — the system handles the math and execution while keeping your position safe.
This is just the beginning of how AI can revolutionize DeFi. Many more features will be added, including automated scheduling, community templates, and an SDK to create vaults managed by your strategies — helping you earn more by fees.
We’re excited to explore more use cases and happy to partner with projects and protocols on KAIA. If you’re building on the ecosystem, let’s work together to make DeFi simple and powerful for everyone.
Web Access: kilolend.xyz
Twitter/X: @kilolend_xyz
GitHub: https://github.com/tamago-labs/kilolend
