LiquidAI

Problem Statement

LiquidAI is an autonomous liquidity orchestration protocol that uses AI reasoning and on-chain data to actively manage DeFi liquidity positions. It continuously analyzes APR, volatility, and risk across pools, then reallocates liquidity intelligently to maximize yield and minimize risk — just like a self-driving portfolio manager for DeFi.ProblemDeFi users constantly face:Fragmented liquidity across chains and poolsVolatile markets that make manual rebalancing inefficientLack of transparency in why liquidity decisions are madeStatic yield strategies that fail to adapt to real-time dataManual liquidity management is error-prone, time-consuming, and often leads to missed opportunities or unnecessary risks.💡 Solution — LiquidAILiquidAI introduces an AI-powered liquidity manager that automates portfolio rebalancing across DEX pools. It integrates:Pyth Network for live price feedsEnvio HyperIndex for on-chain liquidity metricsMeTTa reasoning (from ASI) for intelligent decision-makingHardhat 3 for testing, deploying, and simulating smart contractsUsers interact through a dashboard and AI chat interface that transparently explains every liquidity move, confidence level, and reasoning rule behind it.

Solution

How We Built LiquidAI – The Nitty-GrittyLiquidAI is an AI-driven liquidity orchestration protocol that combines real-time data, reasoning-based AI, and a live dashboard for portfolio management. It’s built around three layers — Data, AI, and Frontend — stitched together for real-time interactivity and explainability.Tech Stack OverviewData LayerPyth Network for real-time price feedsEnvio HyperIndex for on-chain pool metricsUniswap V3 APIs for APR, TVL, and liquidity statsAggregated via Next.js API routes, updated every 3 seconds to simulate live market dataHacky Part: We faked a real-time trading environment entirely in the browser using React state updates and interval-based “pseudo-streaming.”AI Layer (MeTTa Reasoning Engine)Custom-built mettaReasoner.ts mimics rule-based symbolic reasoning (e.g., volatility_high → rebalance_to_stables).Generates confidence scores and actions in real time, shown on the dashboard.Hacky Part: Built a lightweight MeTTa-like engine from scratch in JS to simulate explainable decision logic live in the browser.Smart ContractsLiquidityVault.sol (Solidity 0.8.24) handles deposits and strategy execution.Integrated OpenZeppelin libraries for ERC-20 safety and compliance.Deployed via Hardhat with mock price updates from Pyth scripts.Frontend (Next.js + Tailwind)Next.js 14 + TypeScript for fast, modular frontendTailwindCSS + Framer Motion for sleek UI/animations“Demo Mode” simulates complete AI-driven rebalancing workflows client-sideAI Agent ArchitectureObserver Agent – Collects and analyzes dataAllocator Agent – Runs MeTTa reasoning and suggests allocationsExecutor Agent – Simulates or executes transactionsThey communicate through lightweight Node.js event emitters for real-time updates.🚀 What’s NotableReal-time simulation without backendCustom symbolic AI engine in JSTransparent “reasoning cards” showing how AI makes decisionsFully modular AI-agent designEnd ResultLiquidAI is a self-contained, AI-powered liquidity manager that reacts to market changes in real time, explains its reasoning, and demonstrates how AI + DeFi automation can coexist with human transparency and control.