Snaps Sub DAO Grants #007 - Xtreamly Looped leverage Agent on top of Aave v3-Arbitrum

The following grant will be covered by the MetaMask Snaps Sub-DAO budget.

1. Looped leverage Agent on top of Aave v3-Arbitrum

Project Description / Executive Summary We have developed an AI-powered DeFi agent that automates looped leverage strategies on Aave v3 on Arbitrum, enabling 2-5X higher APY while eliminating liquidation risks. we are keen to bring this agent to Metamask wallet. Given that over 70% of the lending volume on Aave and Morpho relies on looped leverage, yet most users struggle with manual management, our solution offers a fully autonomous, intelligent, and gas-efficient approach. Key Benefits: ✅ Eliminates Liquidation Risks – AI-driven execution automatically optimizes positions to prevent liquidations. ✅ Maximized Yield – Dynamically adjusts leverage for the highest APY without added risk. ✅ Gas-Efficient Execution – Smart contract optimization ensures minimal gas costs. ✅ Emotion-Free Trading – Removes human error and emotional decision-making. ✅ User-Friendly UX – Simplifies complex DeFi strategies with an interactive ChatGPT-like interface. Deep Integration with Aave & Arbitrum for Optimized Performance Deploying on Arbitrum required a deep integration with Aave’s infrastructure to ensure low fees and fast execution. To achieve this, we focused on three core innovations: 1️⃣ Smart Contract Efficiency Gas cost optimization: We compacted our code and calldata, ensuring cost-effective transactions. Layered on top of Aave: Seamless integration reduces inefficiencies and improves execution speed. L2 benefits: Arbitrum’s low fees & high throughput enhance efficiency. 2️⃣ AI-Driven Strategy Design Building an AI model capable of accurately predicting volatility and market shifts required: Volatility classification: Identifying key market signals for optimal execution. Real-time data integration: Combining on-chain and off-chain data for better accuracy. Backtesting & fine-tuning: Ensuring strategies maximize yield while remaining risk-free. 3️⃣ Balancing APY & Liquidation Risks Instead of a one-size-fits-all leverage strategy, we created a dynamic, AI-adjusted system that: Adapts positions in real time based on market conditions. Maximizes APY while ensuring liquidation resistance. Provides risk-free automation for both expert & beginner DeFi users. MetaMask Snaps Integration – Bringing AI-Powered Execution to Users We are integrating this agentic execution with MetaMask Snaps, allowing users to interact through a ChatGPT-like interface. This makes DeFi leverage strategies effortless, enabling users to: ✅ Easily execute & manage leverage with zero manual effort. ✅ Enjoy fully automated profit generation with AI-driven adjustments. ✅ Benefit from real-time risk management to ensure maximum returns. Through smart contract innovation & AI-driven insights, we have built a gas-efficient, liquidation-proof, high-yield strategy, revolutionizing looped leverage execution in DeFi.

Project Goals If our project succeeds, it will redefine how users interact with DeFi leverage strategies by making them effortless, highly profitable, and risk-free through AI automation. This innovation will bridge the gap between expert and retail users, driving mass adoption and improving capital efficiency across lending protocols. Key Goals & Outcomes 🚀 Mass Adoption of Intelligent DeFi Automation By integrating our AI-powered agent with MetaMask Snaps, we will bring one-click, AI-managed DeFi execution to millions of users. Simplifying looped leverage, which currently accounts for 70%+ of Aave and Morpho lending volume, will allow more users to tap into higher yields without expertise. Eliminates the complexity of manual trading, making DeFi leverage accessible to mainstream retail investors. 💰 Higher Yields & Capital Efficiency for DeFi Users AI-driven leverage optimization will boost APY by 2-5X, unlocking billions in additional yield potential for users. Ensuring optimal borrowing and lending positions reduces capital inefficiencies across Aave and other lending platforms. Our model minimizes gas costs, allowing users to retain more of their earnings. 🔄 Effortless, Fully Automated Yield Generation Users no longer need to monitor positions or manually rebalance leverage, reducing stress and errors. AI dynamically adjusts leverage in response to market shifts, ensuring liquidation-proof, optimal APY strategies. No-code, chat-based UI ensures even first-time DeFi users can effortlessly interact with advanced financial strategies. 🏦 Stronger, More Resilient DeFi Ecosystem Smarter leverage strategies reduce mass liquidations, stabilizing lending markets. More efficient capital allocation improves the overall health and liquidity of DeFi protocols. AI-powered execution removes human emotional errors, reducing risk for all participants. Project Responsibilities Project Team Responsibilities ✅ AI & Smart Contract Development – Continue refining our AI model, integrating better market data, and optimizing gas efficiency. ✅ Aave & Arbitrum Integration – Ensure deep technical alignment for seamless execution and minimal fees. ✅ Security & Risk Management – Implement rigorous security measures and audits to ensure trust and reliability. ✅ User Experience (UX) & Adoption – Design an intuitive, frictionless interface for mainstream adoption. ✅ MetaMask Snaps Integration – Work closely with MetaMask to integrate our execution layer into the Snap ecosystem. Requests from MetaMask Team 🔹 Infrastructure & Snap Support – Provide necessary API access and framework support for seamless agent execution. 🔹 Security & Compliance Review – Validate security standards to ensure user protection and system integrity. 🔹 User Distribution & Adoption – Promote adoption via MetaMask’s existing user base, increasing engagement. 🔹 Interoperability & Ecosystem Growth – Ensure compatibility with other Snaps and DeFi applications for broader integrations.

Target Milestones Project Milestones & Roadmap Our project consists of three major milestones, each critical to ensuring a secure, scalable, and widely adopted AI-driven DeFi agent. ✅ Milestone 1: Agent Implementation (Completed) Successfully built and deployed the AI-powered agent that automates looped leverage on Aave v3 (Arbitrum). Developed smart contract architecture optimized for gas efficiency, risk management, and high-yield execution. Integrated AI models to predict market volatility, manage leverage dynamically, and prevent liquidation risks. 🚀 Milestone 2: Battle Testing, Audits & MetaMask Snap Security (Current Focus – Grant Request Purpose) Comprehensive smart contract audits to ensure secure interaction with user funds on Aave. Battle-testing the AI models against real market conditions to fine-tune risk-adjusted leverage strategies. MetaMask Snap security review & audit to meet MetaMask’s security and compliance standards. Gas optimization refinements to enhance cost efficiency for users. 🔹 Goal & Motivation for the Grant: Funding will allow us to complete security audits and rigorous testing to ensure a safe, seamless, and reliable user experience before public launch. 🌍 Milestone 3: Launch & Mass Adoption Deploy MetaMask Snap for seamless AI-powered DeFi execution within MetaMask. Strategic partnerships & ecosystem integrations with Aave, Morpho, and key DeFi platforms. User onboarding, education & social awareness campaigns to drive mainstream adoption. Community growth & developer engagement to build on and expand our AI-driven execution model. Final Outcome Upon completion of these milestones, we will have built a secure, AI-driven, fully automated DeFi execution system that enables mainstream adoption of looped leverage strategies—all within an intuitive MetaMask Snap experience.

Timeline / Path to Production we spent 2 months to build the strong agent, we estimate good 1-2 month for Audit process and back and forces to ensure the integration with snaps, and UI test and battle test and aggressive scalability test

About Team Sogol Malek: - Founder & CEO. Ethereum foundation fellow Cohort 4 Harvard Blockchain Accelerator Fellow, Sprint 2024-Finalist. Uniswap hook fellow 2025 Google Web3 Fellow. Member of Forbes Women Forum For Female Leaders. ETH Global Winner. Panos P - Head of Backend Engineering Former Senior Software Architecture Designer at McKinsey Senior backend architecture Over 15 years of development experience and a history of participation in major hackathons. Amin B. - Head of Defi Senior Defi Engineer and MEV expert. Senior Full Stack Engineer and Smart Contract Developer. Ethereum core dev fellow cohort 5 Chronotrade CTO at Obsidian Group & Co-Founder at Swissdao. Co-Founder swissDAO Association Project Manager at Nexthype Member, Crypto Valley Assocation Pawel Masior - AI/Defi. Senior AI Engineer UBS Data Analytics Lead, Associate Director HSBC Senior Market Risk Analyst CRISI global research Senior Quantitative Analyst MSC Mathematical statistics and probability/ financial Mathematic at Universty of Texas/university of Cologne.

Team Size & Funding Status Entire team is full time dedicated to this project, no grants have been requested yet.

Funding Request 25000