IQ Ecosystem Report - October 2024

Fri Nov 01 2024

The October IQ Ecosystem Report is here, now available as a podcast! Tune in to listen to updates on ecosystem news, partnerships, and more. Highlights include IQ beginning to build the Enshrined On-chain AI (EOAI) Layer after the latest proposal IQIP-20 passed with record votes from the community. CryptoSlate also covered the launch of SolidityBench by IQ, a tool aimed at advancing smart contract reliability, and has seen an increase in IQ GPT integrations.

IQIP 20: Building EOAI (Enshrined On-chain AI) with IQ and Implementing Token Burning

In October, BrainDAO’s community of IQ stakers voted overwhelmingly in favor of IQIP 20: Building EOAI (Enshrined On-chain AI) with IQ and Implementing Token Burning with a record 2.4 billion HiIQ. The proposal outlines BrainDAO’s vision for building, a new category called EOAI (Enshrined On-chain Artificial Intelligence), that will use AI to simplify DeFi so that billions of people can be onboarded.

Decentralized Finance (DeFi) has rapidly emerged as blockchain's most valuable application, with Ethereum's decentralized exchanges leading gas spending in 2024. However, DeFi’s complex, fragmented infrastructure limits its user base to under 7 million active addresses compared to the global banking reach of 5.3 billion adults.

To simplify DeFi, a new category called EOAI (Enshrined On-chain Artificial Intelligence) is needed, going beyond off-chain AI tools. EOAI consists of AI agents embedded directly in the blockchain, enabling tasks like cross-chain transfers, staking, lending, liquidity provision, trading, and token creation. It includes four core agents focused on liquidity, bridging, lending, and launching tokens. EOAI will transform DeFi into a user-friendly experience that adapts to individual goals and risk tolerance, making it accessible to billions. IQ is building this EOAI layer to achieve the vision of onboarding billions of people to crypto and DeFi through enshrined AI agents.

IQ and Frax will collaborate on building the EOAI layer, combining Frax’s expertise in decentralized finance with IQ’s AI-driven tools, such as IQ GPT and IQ Code, to bring sophisticated AI agents to the DeFi ecosystem.

The proposal includes substantial updates to IQ tokenomics to support the EOAI vision. Key changes involve reverting to the 2022 tokenomics model and increasing rewards for stakers and contributors as well as resources going towards development. Users of the EOAI layer will pay fees in IQ to use its AI agents, with a portion of the fees going to stakers and the rest burned, causing the token to become deflationary over time. In November, IQ and Frax will announce a joint press release and share more details on how they will onboard billions of people into a new DeFi Renaissance using AI.

SolidityBench By IQ: the first leaderboard to rank LLMs in Solidity coding

As part of building IQ Code, our first suite of AI models designed for generating and auditing smart contract code, BrainDAO has launched SolidityBench by IQ, the first leaderboard for evaluating and ranking the ability of LLM models in Solidity code generation. The launch was first covered in a CryptoSlate piece by Akiba and in our own in-depth technical blog post. SolidityBench introduces a new Solidity generation leaderboard now available on Hugging Face, featuring two innovative benchmarks: NaïveJudge and HumanEval for Solidity.

NaïveJudge, an innovative evaluation system built around a dataset of audited smart contracts from OpenZeppelin, evaluates generated code by comparing it to this gold-standard dataset, focusing on functional completeness, adherence to Solidity best practices, security, and code optimization. HumanEval for Solidity, an adaptation of OpenAI’s HumanEval benchmark specifically tailored for Solidity, features 25 tasks designed to evaluate Solidity code generation, using a custom server to test code for functional accuracy within the Hardhat development environment.

By offering these complementary benchmarks, SolidityBench encourages community-driven improvements in smart contract development and provides developers and researchers with a valuable tool for testing and advancing AI capabilities in the blockchain space.

Learn more about SolidityBench in our in-depth blog post and CryptoSlate coverage.