The AI proxy issue that has been trending these days—I'm sure you've also encountered it—at 2 a.m., suddenly receiving several transaction notifications, only to find out that a certain DeFi protocol was automatically executing transfers in the background. What's even more heartbreaking is that you had long granted permission for these operations but can't even remember when you clicked to authorize them. One of these transfers even went to a completely unfamiliar address. This is the fatal flaw of the traditional authorization model: once authorized, it's like handing over the safe’s password to a stranger.

KITE has taken a different approach, dividing AI proxy management into three layers. The user always holds the final remote control, like the string that controls a kite; the proxy layer assigns each AI a unique digital identity, making all operations transparent, auditable, and traceable; the session layer uses a one-time key concept, where tasks automatically expire after completion. This way, AI can act flexibly while being tightly constrained.

The most powerful aspect is permission segmentation—not just broadly saying "I authorized it," but precisely across three dimensions: identity, scenario, and quota. For example, you can explicitly set "this proxy can only handle up to 100U of funds" and "can only interact with addresses I have pre-verified." All these rules are encoded on-chain in smart contracts, making it impossible for hackers to breach these protections even if they control the proxy.

On-chain operations emphasize speed, especially for arbitrage trades that need to be executed within 3 seconds. KITE’s design allows AI to react quickly without sacrificing security due to speed. This really is a clever approach.