This podcast delves into Mode Network, an Ethereum L2 built on the Optimism stack, and explores its mission to scale DeFi to billions of users through on-chain agents and AI-powered financial applications. The discussion highlights Mode's innovative approach to user experience, data infrastructure, and tokenomics.
1. DeFi and AI Convergence: A Match Made in Heaven
2. Mode Network: Simplifying the DeFi User Journey
3. Synth Subnet: Powering Intelligent Agents with Robust Data
4. veTokenomics: Aligning Incentives and Empowering Governance
Key Takeaways:
For further insights and detailed discussions, watch the full podcast: Link
This episode explores Mode Network, an Ethereum Layer-2 (L2) solution, and how it aims to scale DeFi to billions of users through on-chain agents and AI-powered financial applications.
Mode Network: Scaling DeFi with AI
The podcast introduces Mode Network, built using the OP Stack and part of the Optimism Superchain ecosystem. Mode positions itself at the intersection of DeFi (Decentralized Finance) and AI, aiming to become the leading "DeFi AI" chain. The speaker highlights Mode's strategy: attracting top builders, leveraging innovative tokenomics, supporting builders, and offering exposure through its Agent app store.
The DeFi Accessibility Problem
The speaker discusses the core challenge Mode aims to solve: DeFi's complexity. While DeFi offers advantages over traditional finance (TraFi) like instant accessibility, speed, and fund sovereignty, it remains difficult for many to navigate. The speaker references the Celsius collapse, noting that consumers desire DeFi yields but lack the understanding to use them safely, highlighting the need for a user-friendly solution.
AI: The Key to DeFi Mass Adoption
The speaker proposes that integrating AI with DeFi could be the solution. AI can monitor, dynamically adjust, and automate tasks, making DeFi yields accessible to a broader audience. The speaker uses the analogy of a grandmother who wouldn't want to manage her liquidity pool (LP) position constantly, emphasizing AI's potential to simplify complex DeFi processes.
Mode's Early Vision: "Aii"
The speaker emphasizes Mode's foresight, noting that they coined the term "Aii" (presumably "Artificial Intelligence Investing") in September 2024, before the popularization of "DeAI" in January 2025. This highlights Mode's early commitment to the intersection of DeFi and AI.
Benefits of the DeFi-AI Intersection
The speaker mentions examples of applications being built on Mode, such as yield optimizers and blockchain security agents.
Mode's User-Friendly Approach
The speaker also mentions a BitTensor subnet (Synth Subnet 50) that provides high-quality data to AI agents. The L2 itself features an AI-secured sequencer (partnering with Forta) to detect anomalies and prevent harmful transactions.
Attracting Builders to the DeFi-AI Ecosystem
The speaker emphasizes that Mode is a specialized L2, purpose-built for DeFi and AI.
The Mode Dashboard: Simplifying the User Experience
The speaker highlights Mode's innovative VE (vote escrow) tokenomics, which allows rewards in OP (Optimism's token) to flow between dApps and users, stimulating on-chain usage. Projects like Balancer, Velodrome, and Beefy have deployed on Mode.
The AI Agent App Store: Discoverability and Accessibility
The AI Agent app store allows users to discover and interact with agents live on Mode Network. The speaker highlights the store's user-friendly interface, enabling users to easily explore different agent platforms and their functionalities.
The Mode Terminal: Natural Language DeFi Interaction
The Mode Terminal allows users to interact with DeFi using natural language. Users can perform tasks like swaps or borrows by typing in their requests, simplifying the DeFi experience. The speaker notes that the terminal is currently token-gated and in early access.
Synth Subnet 50: Democratizing Financial Models
Synth Subnet 50, Mode's data solution on BitTensor, provides data for AI agents. The speaker explains that agents need data forecasting for tasks like liquidity provision. Synth Subnet 50 uses BitTensor's open platform and incentivized miners to generate simulated price paths for Bitcoin, enabling volatility predictions.
This data helps AI models forecast price movements. The speaker suggests this could become a "moat" for Mode, attracting AI agent builders. The subnet is currently incentivizing miners with $20,000 per day.
Spotlight on Teams Building on Mode
James Ross: The Founder's Background
The speaker profiles James Ross, the founder of Mode Network. James previously built a fintech startup (an automated savings app) and was the managing director of Hype, a blockchain marketing agency. The speaker emphasizes James's experience in DeFi and his ability to scale and collaborate.
Mode's VE Tokenomics: Governance and Incentives
The speaker also discusses "Agent Mode" memberships, which require staking a certain number of tokens and provide access to a gated community, token airdrops from new AI projects, early-stage fundraising opportunities, and beta access to new features.
Bribes and Agentic Staking
The speaker discusses recent upgrades:
Token Purchase Locations
The speaker provides guidance on where to buy the Mode token:
Roadmap and Future Developments
The speaker outlines Mode's roadmap:
Final Thoughts: Bullish on Mode's Future
The speaker expresses strong approval for what Mode has built, highlighting:
"I really just like the way they're going about things."
Reflective and Strategic Conclusion
Mode Network's strategic focus on user experience, data infrastructure, and AI integration positions it as a potential leader in the emerging DeFi AI space. Crypto AI investors and researchers should closely monitor Mode's development, particularly the evolution of Synth Subnet 50 and the success of projects building on the platform, as these could be key indicators of future growth and adoption.
