🤖Agent Architecture

Detailed explanation of the internal mechanisms of the KawAIi agent

Autonomous Trading System

  • Real-time market monitoring: Continuous scanning of DEXs and CEXs across multiple chains for price movements and trading opportunities

  • Price discrepancy detection: Advanced algorithms to identify profitable price differences between exchanges and chains

  • Opportunity validation algorithms: Multi-factor validation system to ensure trades meet profitability thresholds and risk parameters

  • Trade execution protocols: Optimized execution paths with automated routing through the most efficient dexes/aggregators in order to achieve the fastest and most profitable trades

Cross-chain Scanning Mechanism

  • Bridge monitoring system: Real-time tracking of cross-chain bridge liquidity and efficiency

  • Gas fee optimization: Dynamic gas price adjustment system to ensure profitable trades while minimizing costs

  • Liquidity pool monitoring: Continuous analysis of pool depths, volumes, and swap activities across major DEXs

  • multiple blockchain networks for real-time price and liquidity data

Execution Engine

  • Smart contract interaction: Automated interaction with DeFi protocols and trading venues through optimized contract calls

  • Transaction optimization: Advanced mempool strategies to ensure successful trade execution

  • MEV protection: Built-in mechanisms to protect trades from sandwich attacks and other MEV exploitation

  • Slippage control: Dynamic slippage tolerance adjustment based on market conditions

Risk Management Protocols

  • Position size limits: Dynamic position sizing based wallet fund availability, market liquidity and risk parameters

  • Stop-loss mechanisms: Automated trade exit strategies to minimize potential losses

  • Liquidity assessment: Real-time evaluation of market depth and trading impact

  • Gas price thresholds: Maximum gas price limits to ensure trade profitability

  • Circuit breakers: Automatic trading suspension during extreme market conditions or technical issues

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