PelicanTrade

Problem Statement

PelicanTrade: The AI-Powered Decentralized Hedge FundPelicanTrade is a next-generation AI Hedge Fund, revolutionizing decentralized investing by integrating AI-driven trading, privacy-first security, and advanced DeFi automation.At its core, PelicanTrade is powered by Super Trading Agents—AI-driven entities that optimize liquidity strategies, execute high-frequency trades, and maximize returns in DeFi markets. These agents are:Created by Coinbase AgentKit, ensuring seamless blockchain integration.Secured by Nillion SecretVault, encrypting and protecting sensitive trading data.Powered by ElizaOS, enabling real-time market analysis and AI-driven trading decisions.Enhanced by EigenLayer, leveraging restaking for increased security and additional yield.Optimized through Uniswap and Uniswap Hooks, dynamically managing liquidity pools for maximum efficiency.PelicanTrade also utilizes Coinbase OnchainKit to integrate smart contracts seamlessly and Coinbase Onramp to simplify fiat-to-crypto deposits, ensuring easy user participation in DeFi investing.With transparent on-chain governance, users can actively participate in fund decisions and strategy optimization without requiring deep technical expertise.By merging AI intelligence, privacy-preserving computation, and Coinbase-powered blockchain tools, PelicanTrade delivers secure, autonomous, and highly efficient AI-driven investing in DeFi. 🚀

Solution

How It’s Made: PelicanTradePelicanTrade is built using a combination of cutting-edge Web3, AI, and DeFi technologies, ensuring an intelligent, secure, and community-driven decentralized hedge fund. Below is a breakdown of the core components and how they are integrated.Core TechnologiesCoinbase AgentKit – Generates AI-powered Super Trading Agents, each with unique trading behaviors and strategies. These agents analyze market trends, execute trades, and optimize liquidity strategies.Nillion SecretVault – Securely stores and encrypts sensitive trading data, including agent configurations, investment strategies, and user-related information, ensuring privacy and security.ElizaOS – Powers the AI-driven decision-making process. It reads characters from Nillion SecretVault, processes market data, and executes automated trading strategies based on predefined logic and real-time insights.EigenLayer – Enhances security and yield generation by leveraging Ethereum restaking. This helps secure smart contracts and adds an additional layer of rewards for liquidity providers.Uniswap and Uniswap Hooks – Facilitates automated trading and liquidity management. Uniswap Hooks allow the AI to dynamically adjust pool parameters, optimize fees, and minimize impermanent loss.Coinbase OnchainKit – Ensures seamless integration of smart contracts into the blockchain, making on-chain execution smooth and efficient.Coinbase Onramp – Simplifies fiat-to-crypto deposits, making it easier for users to participate in the hedge fund without complicated onboarding processes.ArchitecturePelicanTrade follows a modular architecture, consisting of multiple layers for AI processing, blockchain execution, and user interaction.Smart Contracts – Written in Solidity and deployed on Ethereum, these contracts handle fund management, user contributions, profit distribution, and governance. They are secured by EigenLayer’s restaking mechanism.AI Engine – Built with ElizaOS, this component continuously analyzes market trends, predicts trading opportunities, and interacts with Uniswap and EigenLayer via APIs.Secure Data Storage – Nillion SecretVault ensures that sensitive AI agent data and trading strategies remain confidential, providing privacy without compromising functionality.Frontend – A user-friendly web interface allows users to monitor fund performance, contribute liquidity, and participate in governance.Backend – A Node.js-based backend facilitates API communication, processes AI data, and manages fund analytics.Key Features and IntegrationsAI-Driven Trading – Super Trading Agents analyze real-time market data and execute automated trades, optimizing risk and reward.Private AI Agents – AgentKit-generated agents operate with different trading strategies, with sensitive parameters stored securely in Nillion SecretVault.Dynamic Liquidity Management – Uniswap Hooks allow the AI to adjust trading parameters and optimize liquidity pools dynamically.Restaking Security – EigenLayer provides an additional layer of security and yield by restaking ETH.Decentralized Governance – Users can propose and vote on fund strategies, fee structures, and key decisions.Simplified User Onboarding – Coinbase Onramp ensures an easy transition from fiat to crypto investment.Hacky and Notable SolutionsHybrid AI-Agent System – The combination of AgentKit, ElizaOS, and Nillion SecretVault allows different trading agents to operate independently while maintaining secure data storage.Dynamic Fee Adjustments – Using Uniswap Hooks, the AI dynamically adjusts fees based on market conditions, maximizing returns.Privacy-Preserving Execution – Nillion SecretVault keeps certain trading strategies hidden while still allowing the AI to operate efficiently.Optimized Gas Costs – Transactions are batched and optimized using EigenLayer’s efficient restaking process, reducing operational costs.By integrating AI-powered trading agents, secure data management, and DeFi automation, PelicanTrade delivers a decentralized, intelligent, and privacy-focused hedge fund experience. 🚀