DFG's EthCC8 Review and Insights: AI Agents, Stablecoins, and the DeFi Renaissance

Original Author: James Wo, Founder & CEO, Digital Finance Group

The 8th Ethereum Community Conference (EthCC[8]) was held in Cannes, France, from June 30 to July 3, gathering over 6,500 developers, researchers, investors, and ecosystem contributors for four days of talks, panel discussions, and community-led activities, marking the largest event to date. As one of the most developer-focused Ethereum gatherings in Europe, this year's EthCC highlighted the increasingly mature and vibrant Web3 landscape, driven by the convergence of the real world, emerging frontier technologies like AI, and the resurgence of DeFi.

In addition to the main stage at the Palais des Festivals, Cannes became a hub for a week of activities, hosting over 300 side events covering areas such as AI and cryptocurrency, stablecoins, tokenization, DeFi, and infrastructure. DFG was honored to participate again as a sponsor of EthVC's pitch event, and I was pleased to share insights on Chain Abstraction from the main stage.

Here are three key themes we observed during EthCC8:

AI Agents Shift from Profit-Driven Hype to Practicality

We are witnessing a significant transformation in AI within Web3: the initial race for token-driven enthusiasm has evolved into a focus on real-world functionality and long-term applications. Teams are no longer designing products around speculative gains but are prioritizing usability, verifiability, and monetization models that go beyond token economics. The dominant question is no longer "How to profit from the hype?" but rather "How to provide users with the tools they truly need?"

This evolution has birthed a new architectural blueprint that integrates LLMs for decision-making, smart contracts for execution, and verifiable systems for trust and security. For example, ecosystems like NEAR are introducing infrastructure that allows AI agents to engage in commercial activities through executable protocols covering milestones, service terms, and payment conditions. This innovation transforms digital interactions from simple task execution into legally binding transactions, marking a significant step for AI agents toward becoming autonomous actors in the real economy (rather than just robots handling isolated tasks).

To support this shift, developers are building the foundational layer of the agent economy, including tools for monetization, inter-agent communication, attribution, and performance evaluation. These components will enable agents to interact, collaborate, and compete in dynamic markets, unlocking models such as recommendation-based systems and interoperability for specific tasks. This infrastructure is crucial for creating a sustainable, interconnected ecosystem where AI agents can thrive beyond isolated use cases.

Stablecoins and RWAs as the Foundation of Institutional Finance

Stablecoins have rapidly become an indispensable part of the global financial ecosystem. Recent regulatory measures have brought much-needed clarity, positioning stablecoins as compliant mainstream application tools. This shift is sparking interest among institutional investors, with major financial institutions beginning to utilize stablecoins for payments, settlements, and cash management—evidenced by the integration of USDC with traditional payment networks, indicating growing confidence from mature financial institutions.

Meanwhile, tokenized RWAs are rapidly expanding, from cash management to decentralized credit systems. These assets are reshaping capital markets by introducing programmability, transparency, and cost structures that traditional finance cannot match. This wave of applications is further expanding through tokenization tools in underserved industries, enhancing inclusivity and global liquidity.

Today, AI-driven systems can autonomously optimize cross-chain and cross-protocol stablecoin yields and RWA allocations, enhancing this landscape. Smart rebalancing mechanisms, risk mitigation engines, and cross-chain portfolio execution aim to balance performance and compliance. The integration of compliant stablecoins, tokenized RWAs, and automated intelligence makes Web3 not just a financial layer but a robust institutional-grade infrastructure for the digital economy.

DeFi is Reviving, Smarter and Safer

After nearly two years of contraction, DeFi is regaining momentum, focusing on security, efficiency, and interoperability. The next wave will be shaped by cross-chain liquidity layers, institutional-grade compliance, and AI-driven automation. The emphasis has shifted from chasing short-term gains to building systems that can sustainably scale and withstand volatility—fundamental requirements for institutional adoption.

One of the most notable discussions at EthCC8 was AAVE v4, which introduced a unified liquidity layer enabling seamless cross-chain lending, dynamic interest rate mechanisms, and enhanced risk control. This upgrade also deepened integration with stablecoins, including features like soft liquidation and automated cash management. These advancements reflect a broader trend toward modular, risk-aware architectures that can adapt to market conditions without sacrificing efficiency or security.

AI-driven automation is accelerating this evolution. Autonomous agents can now optimize liquidity supply, execute hedging strategies, and identify high-yield opportunities across multiple chains. Predictive analytics are helping protocols anticipate and mitigate risks before they escalate. This is a stark contrast to the early DeFi era, which heavily relied on manual management and static incentives. Today, DeFi is evolving into an intelligent, self-optimizing financial layer, paving the way for broader institutional adoption, long-term sustainability, and resilient infrastructure that can compete with and complement traditional markets.

DFG at EthCC8

In addition to sponsoring the main stage EthVC, DFG actively participated in key side events, engaging with top developers and exploring innovations shaping the future of Ethereum. On June 30, DFG President Terry Culver delivered an inspiring speech titled "Building the Next Wave of Ethereum Innovation" at the EthVC opening ceremony, sharing insights on capital allocation, prioritizing practicality over scarcity, evaluating founding teams, and how to support enduring projects in Web3.