AI agent
The decentralized AI agent setup designed to enhance index creation and management and is part of the build your own index roadmap. The AI agent empowers users to create, optimize, and manage indices by automating tasks and providing data-driven insights, while ensuring compliance with smart contract standards.
Core Features
Asset Selection and Weighting
Selects and weighs assets from a predefined, curated, and growing set of target tokens.
Optimizes asset allocation based on user preferences and market data.
Fully Decentralized Compute
Operates through Chainlink Functions at an approximate cost of $0.03 (per 4-1-2025) per request.
Ensures secure, transparent, and decentralized computation.
Automated Rebalancing
Monitors market conditions to suggest or execute rebalancing strategies.
Minimizes transaction costs and slippage.
Technical Architecture
Data Ingestion Layer
Aggregates real-time and historical data primarily from Uniswap pools, leveraging on-chain data.
Utilizes Chainlink CCIP for cross-chain token transfers when required.
Chainlink-Powered Compute
Executes predictive models and optimization algorithms in a decentralized manner.
User Workflow
Setup Phase
Users deposit USDC and input preferences such as risk tolerance and asset criteria.
The AI agent composes the initial index based on user inputs and curated asset pools.
Execution Phase
The index is deployed on-chain via user-authorized transactions.
Management Phase
The AI agent monitors and suggests updates for performance optimization.
Users receive a share of the fund's profit, based on a high-water mark model.
Security and Transparency
Decentralized Compute: All computations are performed via Chainlink Functions, gatekeeping the input and output in the smart contract to fix the output (list of target weights) in a standardized format.
Blockchain Integration: Actions are logged on-chain for full transparency.
In the basic version users do not have any capability of modifying or otherwise influencing the outcoming of the token selection. This is to protect long term investor that the strategy cannot be changed unnoticed. Expanding AI agent smart contract capabilities, such by allowing fund manager interaction, depending on index token holder approval vote, can be added after current roadmap in case of traction.
By leveraging decentralized compute and curated asset pools, Nexlabs’ AI agent ensures efficient, secure, and user-centric index creation, aligning with our vision for decentralized financial infrastructure.
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