Definition ∞ Behavioral Agents are entities, often algorithms or automated programs, designed to act within a system based on predefined rules or learned patterns. In digital asset contexts, these agents can execute trades, manage liquidity, or participate in governance based on market conditions or protocol states. Their actions collectively influence market dynamics and system functionality. They operate without direct human intervention. These agents contribute to market automation.
Context ∞ The application of behavioral agents in decentralized finance (DeFi) is a rapidly developing area, with bots performing arbitrage, liquidations, and yield optimization. A key debate surrounds the potential for these agents to create systemic risks or market inefficiencies through their automated interactions. Researchers are examining how to design agents that promote market stability and fair access. Their impact on market structure is under continuous study.
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