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1inch co-founder Kunz discusses DeFi liquidity, AI agents and institutional interest in The Block interview
1inch co-founder Sergej Kunz says AI agents handling order routing could drive DeFi adoption by removing manual steps for users. The protocol's Aqua initiative points to a future where automated execution replaces hands-on trading.
1inch Co-Founder Discusses DeFi Infrastructure and AI's Role in User Growth
Sergej Kunz, co-founder of 1inch, outlined how artificial intelligence and automation could drive adoption in decentralized finance during a recent interview. The discussion covered liquidity fragmentation, user experience design, security concerns, and how automated market makers are evolving to serve institutional investors.
Kunz and interviewer Gareth Jenkinson examined Ethereum's direction, institutional interest in DeFi protocols, and how 1inch competes with established players like Aave. The conversation also touched on 1inch's Aqua initiative, which signals a shift toward AI agents handling order routing and reducing friction in on-chain trading.
What This Means for Product Development
The emphasis on AI agents and automation reflects where the protocol is investing engineering effort. Smart order routing and automated execution reduce manual steps, which directly affects how users interact with the platform and whether they stick with it over competitors.
For product teams, the discussion highlights three areas worth monitoring: DeFi tooling design, interface improvements, and security architecture. These decisions influence trading volumes, fee generation, and how sticky a protocol becomes within the broader ecosystem.
The focus on institutional DeFi also signals where capital and development resources are concentrating. Institutional traders have different requirements than retail users-they need better risk management, reporting, and integration with existing workflows.
The AI Agent Question
The interview suggests that future user growth may depend less on marketing and more on whether agents can operate autonomously on behalf of users. This means AI for product development isn't just about internal tools-it's about the product itself becoming more capable and self-directed.
If agents handle routing and execution, the addressable market for on-chain finance expands beyond people who understand order books and slippage. That expansion depends on product decisions made today.