The problem Chill PM 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 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 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.