How Prompting Works
At its core, prompting is the process of communicating with AI using structured inputs to guide its response. Just like giving instructions to a human, the quality, clarity, and intent behind a prompt significantly impact the output.
AI models, including large language models (LLMs), operate on patterns rather than explicit understanding. They generate responses by predicting the most likely continuation of a given input based on extensive training data.
Effective prompting involves three key principles:
Clarity – The more specific and well-structured a prompt, the more accurate and relevant the response will be.
Context – Providing relevant background information helps the AI align its response with user intent.
Constraints – Setting boundaries (such as format, length, or structure) ensures outputs meet specific needs.
Types of Prompts
Open-Ended Prompts – These invite broad, exploratory responses and allow the AI agent to determine the best approach.
Example: "Find the best way to increase my stablecoin yield with low risk."
Instruction-Based Prompts – These provide clear, specific tasks for the AI agent to execute.
Example: "Swap 50% of my USDC into ETH and deploy it into a lending protocol."
Few-Shot Prompts – These offer examples to guide the AI’s execution strategy.
Example: "Last time, you found a 5% APY stablecoin yield on Frax. Find me a similar opportunity today."
Chain-of-Thought Prompts – These encourage the AI to break down a task into logical steps before executing.
Example: "Analyze my portfolio, identify underperforming assets, suggest a rebalancing strategy, and execute if the projected yield improves by at least 2%."
Declarative Intent Prompts – These define a goal without specifying the method, allowing the AI to determine the best approach.
Example: "Optimize my portfolio for passive yield farming with minimal active management."
By structuring prompts effectively, Cod3x AI agents can navigate complex DeFi tasks, execute financial strategies, and continuously refine their decision-making processes based on user-defined goals.
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