Chill PM
Delta neutral farming startegy AI agent curation via AVS
About
The problem it solves Yield farming and DeFi lending often require users to take on **significant market risk**, making it difficult to maintain **consistent yield** without exposure to volatility. - Many yield strategies rely on **one-sided staking**, leaving users vulnerable to price swings. - Managing **delta-neutral strategies** manually is complex, requiring real-time monitoring and **automated rebalancing**. - Users lack **integrated AI-driven insights** that optimize risk-adjusted returns across multiple chains and platforms. - Ensuring **secure and verifiable** execution for such strategies across **CEXs and DEXs** is a challenge. **Chill PM solves these problems by providing an AI-powered, fully automated delta-neutral strategy executor**, integrating **off-chain and on-chain validation layers** to ensure trustless and optimal execution. User Interaction and Data Flow Users interact with **Chill PM** through a **CLI or UI**, providing their **risk tolerance, capital allocation, and preferred yield sources**. The AI agent then: 1. **Fetches Market Data** - Collects **on-chain** data (DEX quotes, liquidity, lending rates). - Collects **off-chain** data (CEX positions, funding rates, historical volatility). 2. **Processes Strategy Optimization** - Determines the **optimal leverage ratio**, asset pairs, and hedging structure. - Uses **AVS on EigenLayer** to validate strategy execution. 3. **Executes Transactions** - **On-chain:** Executes swaps, deposits, and lending transactions via smart contracts. - **Off-chain:** Places hedging orders on CEXs to maintain delta neutrality. 4. **Continuous Monitoring & Rebalancing** - AI **monitors portfolio health** in real-time. - Adjusts **positions dynamically** when price movements impact neutrality. 5. **Security & Compliance** - Uses **Trusted Execution Environments (TEE)** (Altlayer/Phala) for confidential execution. - Ensures data security and prevents strategy manipulation. The project architecture and development process ### Architecture Overview The system consists of multiple layers: 1. **AI Agent & Recommendation Engine** - Uses real-time **data feeds** from on-chain (Eisen API) and off-chain (Binance API). - **Suggests optimal strategy setups** based on market conditions. 2. **Execution Layer** - **On-Chain Executor:** Handles swaps, deposits, and yield farming transactions. - **Off-Chain Executor:** Manages leverage, hedging, and funding rate adjustments via Binance API. 3. **Validation & Security Layers** - **AVS (Othentic stack top on Eigen Layer)** verifies AI-generated strategies before execution. - **TEE (Altlayer/Phala)** ensures confidential computing for sensitive AI logic. 4. **Portfolio Monitoring & Rebalancing** - **AI continuously tracks exposure** and triggers rebalancing when needed. ### Development Process - **Phase 1**: Designed core AI models for **strategy optimization**. - **Phase 2**: Integrated **[Eisen](https://app.eisenfinance.com) API** for multi-chain execution & real-time data aggregation. - **Phase 3**: Developed **off-chain execution engine** using Binance API. - **Phase 4**: Implemented **security layers (AVS & TEE)** to ensure trustless execution. - **Phase 5**: Optimized **automated rebalancing** and backtested strategies. Product Integrations - **[Eisen](https://app.eisenfinance.com) API** – Fetches **swap quotes**, executes transactions across multiple chains, and aggregates portfolio exposure. - **Binance API** – Fetches **balances, positions**, and executes transactions (testnet support). - **EigenLayer AVS** – Provides **attestation & validation** of AI-driven yield strategies. - **Altlayer/Phala TEE** – Ensures **secure execution & confidential data processing**. Key differentiators and uniqueness of the project **AI-Driven Optimization** - Unlike traditional **manual hedging** approaches, Chill PM **automates delta-neutral strategies** with AI curation. **Multi-Chain & Cross-Platform Execution** - Supports **CEX + DEX yield farming** with **real-time data aggregation** and execution. **Security & Trust** - Uses **AVS attestation** and **TEE secure computing** for verifiable execution. **Continuous Rebalancing** - Automatically adjusts **exposure, leverage, and hedge ratios** based on market conditions. **Improved Risk-Adjusted Yields** - **Backtested strategies** ensure optimized **risk-reward ratios** across DeFi and CeFi. Trade-offs and shortcuts while building - **Smart Contract Optimization:** - Initially prioritized **off-chain execution** (CEX hedging) over full **on-chain automation** due to **gas constraints**. - **Multi-Exchange-Chain Execution:** - Currently **integrated only Binance API**, but will expand to **OKX, Bybit, and others**. - Currently integrated mainnet, bsc, base, arbitrum, linea, and zircuit, but will expand more to optimism, and other else. - **AI Model Fine-Tuning:** - Initial implementation uses **rule-based rebalancing**, but future versions will incorporate **AI**. - **AVS Validation Scope:** - Currently verifies **AI strategy logic**, but will expand to **full transaction validation**. Additional Features - **AVS on EigenLayer** – Integrated attestation for **strategy verification** before execution. - **Automated Portfolio Monitoring** – AI now **dynamically adjusts hedging positions**. - **Improved Risk Metrics** – Added **volatility-based leverage adjustments**. - **Enhanced Execution Logic** – Faster **swap routing via Eisen API** for improved efficiency.