At 2:21 AM, while traditional traders are tense over the $23.6 billion options settlement, on Kite—an EVM-compatible Layer 1 network—tens of thousands of AI trading bots with the "Verifiable Identity" label are executing their 37th arbitrage operation. This is no longer a hypothetical about the future.

Behind a minimalist design info card lies the true logic of financial automation—a blockchain infrastructure specifically built for real-time AI agent trading. While retail investors are still weighing the yields of "year-end financial planning" versus "fixed deposits," AI has already found a third path through programmable governance: leveraging your on-chain identity to perform transactions during your deep sleep hours—transactions you might not understand but that yield tangible results—automatically compounding profits day after day.

What is the truth behind that white card? Why does the "three-layer identity system" become the key to automated wealth?

This architecture is designed very clearly:

**User Layer** is your wallet address, anchoring human identity. **Proxy Layer** is the AI trading program itself, which obtains verifiable identity authentication on-chain. **Session Layer** handles authorization for individual transactions; once the transaction is completed, it is automatically destroyed.

Why are these three layers important? Let’s look below.

First, your AI proxy can accumulate a "credit record" similar to a human trader, but it doesn’t require KYC verification, rest, or emotional stability, nor does it make impulsive decisions. This in itself is a form of dimensionality reduction—trading on-chain, but unlike humans limited by physiology and psychology, AI is free from these constraints.

Second, each transaction is an independent authorization session. What does this mean? Even if an AI proxy is attacked or hacked, your main wallet remains secure. Risks are fully isolated within that transaction session—a clever security design.

The third dimension is even more interesting: verifiable identity enables AI proxies to coordinate across different DeFi protocols. For example, harvesting yields from a liquidity mining platform, arbitraging on a DEX, then leveraging in a lending protocol—an entirely automated process, like an industrial assembly line. You sleep, it makes money.

What does this mode of operation change? It changes the competitive dimension for financial participants.

In traditional trading, humans need to monitor markets, make decisions, and endure psychological pressure. AI proxies turn wealth accumulation into an automated process that can be programmed, optimized, and continuously executed. They won’t panic sell upon seeing a bearish signal, nor chase high due to FOMO. They simply follow predefined strategic parameters, repeatedly executing on-chain.

But there’s a question worth discussing: as more AI proxies execute similar arbitrage strategies on-chain, these opportunities will gradually diminish. The market itself will become more efficient, arbitrage spaces will shrink, and yields will decline. This is a market self-regulation process—early participants profit the most, while later entrants face fiercer competition.

Another perspective involves governance: if AI proxies have verifiable on-chain identities, who ensures their actions align with the ecosystem’s interests? If all proxies compete for the same arbitrage opportunities, could congestion occur? These are architectural issues to consider in the future.

From a technical standpoint, the value of this system lies in providing a relatively secure and transparent framework for AI to participate in on-chain finance. Users don’t need to give private keys to proxies—only session-level authorization. The transaction history accumulated by proxies is verifiable, laying a solid foundation for future credit scoring systems.

Of course, the core appeal remains automation. In a 24/7 market, humans obviously cannot stay in optimal condition all the time. AI proxies fill this gap—they can operate during the dullest late nights, the least watched hours, executing those seemingly small but cumulatively significant operations continuously.

This could be a new direction for future financial participation: not everyone can become a top trader, but everyone can have an AI trading proxy. The question is, what will this ecosystem eventually evolve into?