How Does Giza Work?

DeFi|Risk C+|6 mechanisms|5 interactions

Giza is an autonomous AI agent protocol that let users deploy non-custodial AI agents to optimize DeFi yield strategies across multiple chains. In February 2026 the team sunset its legacy ARMA and Pulse agents, returning all user funds, and consolidated into a unified Giza Agent product. TVL has collapsed from $4M to under $15K as a result. With $8.2M in total funding but negligible current TVL and $58 in 30-day revenue, Giza receives a C grade reflecting the operational reset, absence of formal security audits, and unproven traction for the new product.

TVL

$14,000

Sector

DeFi

Risk Grade

C+

Value Grade

C-

Core Mechanisms

Governance > Agent-Based Execution

Novel

Autonomous AI agents (ARMA) execute DeFi strategies without human intervention using verifiable ML models

Novel approach to on-chain ML verification for autonomous trading

Custody > Session-Key Authorization

Novel

Smart Authorization Layer uses session keys to allow agents to act on behalf of users without full custody transfer

Self-custodial agent execution via scoped session keys

Yield > Strategy Optimization

ARMA agent continuously monitors and reallocates stablecoin deposits across Aave, Compound, Morpho, Moonwell for optimal yield

Yield optimization strategy across multiple lending protocols

Data > Semantic Layer

Novel

Translates DeFi protocol operations into agent-readable structured data for autonomous decision-making

Novel semantic abstraction layer for AI-DeFi interface

Token > Governance & Utility

GIZA token used for governance voting and 20% revenue buyback mechanism

Standard governance token with buyback utility

Execution > Decentralized Agents

Decentralized Execution Layer carries out agent instructions across multiple chains (Base, Mode, Arbitrum)

Multi-chain execution infrastructure for agent operations

How the Pieces Interact

AI Agent Execution↔Smart Contract IntegrationHigh

Agent may execute strategies that interact with vulnerable smart contracts or exploit unintended protocol behaviors

Oracle Price Data↔Agent Strategy DecisionsMedium

Stale or manipulated price feeds could cause agents to make suboptimal allocation decisions

Session-Key Authorization↔Fund CustodyMedium

Compromised session keys could allow unauthorized agent actions on user funds

Multi-Protocol Yield↔Cascading RiskMedium

Exploit in any integrated protocol could cascade through agent-managed positions

Token Buyback↔Revenue GenerationLow

Insufficient protocol revenue could undermine buyback sustainability and token value

What Could Go Wrong

  1. Product discontinuity: ARMA and Pulse agents were sunset in February 2026 with all user funds returned, collapsing TVL from $4M to under $15K; the replacement unified Giza Agent has not yet demonstrated meaningful adoption
  2. No formal security audits for the current Giza Agent product despite managing user funds through session-key authorization mechanisms
  3. Near-zero TVL ($14K) and negligible revenue ($58 in 30 days) raise sustainability concerns, and multi-protocol exposure through yield optimization creates cascading risk if any integrated protocol is exploited

AI Agent Strategy Failure Cascade

Moderate

Trigger: ARMA agent executes a strategy that interacts with a compromised or exploited integrated protocol, causing significant losses across managed positions

  1. 1.Integrated protocol (e.g., Morpho or Moonwell) experiences a smart contract exploit — Agent-managed funds allocated to that protocol are at risk of loss
  2. 2.ARMA agent detects anomaly but reallocation logic moves funds to another stressed protocol — Losses compound as agent follows programmed strategy without human judgment
  3. 3.Multiple users' agents simultaneously attempt to exit positions — Liquidity crunch in integrated protocols as automated withdrawals spike
  4. 4.GIZA token price drops as confidence in agent reliability falls — Buyback mechanism becomes less effective, further reducing token demand
  5. 5.Institutional partners (Re7 Capital) withdraw managed capital — TVL decline accelerates, reducing protocol revenue and sustainability

Risk Profile at a Glance

Mechanism Novelty9/15
Interaction Severity8/20
Oracle Surface5/10
Documentation Gaps4/10
Track Record6/15
Scale Exposure0/10
Regulatory Risk3/10
Vitality Risk7/10
C+

Overall: C+ (42/100)

Lower score = safer

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