3. Agent Workframe

Integrate custom Eliza agent to enhance your trading strategies with Xtreamly's intelligence

Looped Leverage Agent

Overview

The Looped Leverage Agent is an automated trading system that executes recursive lending and borrowing strategies on DeFi platforms. It integrates real-time volatility predictions from Xtreamly AI Models with on-chain transaction execution, continuously refining its decision-making through AI-driven market evaluation.

more details: https://github.com/Xtreamly-Team/looptrader_agent_DEMO

System Architecture

1. Data Ingestion & AI Processing

• Web3 Data Sources: The system fetches real-time blockchain data, including asset prices, borrow/supply rates, and protocol-specific risk parameters.

• Xtreamly AI Models:

  • Every minute, the Xtr DeFi Backend requests volatility predictions from the Xtreamly API.

  • AI models are continually trained with historical and real-time market data to enhance predictive accuracy.

2. Trade Decision Pipeline

1. Xtreamly AI Forecasts – Predicts short-term volatility and optimal leverage opportunities.

2. Xtr DeFi Backend Processing – Processes AI insights and formulates a proposed trade action (e.g., loop leverage, unwind, hold).

3. ElizaAgentInstance Evaluation – Uses ChatGPT/Other AI Models to validate trade feasibility by:

   • Assessing liquidity conditions

   • Simulating risk scenarios

   • Checking gas cost efficiency

3. Looped Leverage Execution

• Collateral Deposit: Initial funds are supplied to a lending protocol (e.g., Aave, Compound, Morpho).

• Recursive Borrow & Supply:

  1. Borrow against collateral

  2. Re-deposit borrowed funds as additional collateral

  3. Repeat until reaching a risk-adjusted leverage threshold

• Transaction Verification & Execution:

  • AI-generated transactions undergo multiple validation layers before blockchain execution.

  • Fail-safes ensure accuracy, security, and non-redundancy.

4. Risk Management & Adaptation

• Health Factor Monitoring: Ensures leverage remains within safe limits.

• Automated Unwinding: If risk thresholds are breached, the agent deleverages intelligently.

• Adaptive Learning: AI continuously improves looping strategies based on past outcomes.

Key Features

✅ AI-Driven Trade Execution – Predicts optimal leverage moments. ✅ Automated Looping – Maximizes capital efficiency without manual intervention. ✅ Fail-Safe Mechanisms – Ensures transaction integrity. ✅ Continuous AI Training – Models evolve with market conditions.

Use Cases

• DeFi Yield Optimization

• Stablecoin Leverage Strategies

• Risk-Aware Trading in Volatile Markets