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 ExecutionSmart Contract IntegrationHigh

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

Oracle Price DataAgent Strategy DecisionsMedium

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

Session-Key AuthorizationFund CustodyMedium

Compromised session keys could allow unauthorized agent actions on user funds

Multi-Protocol YieldCascading RiskMedium

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

Token BuybackRevenue 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

More on Giza

Related DeFi Explainers