Technical Implementation
Last updated
Last updated
The ZyFAI Smart Account is based on 3 core components:
Smart Account
Session Keys
AI Agent
On Ethereum, there are two types of accounts: Externally Owned Accounts (EOAs) like Metamask or Rabby, and Smart Contract Accounts.
Popularized by the ERC-4337 proposal, smart contract accounts can transfer and receive tokens on the blockchain but rely on code instead of a private key to secure and recover wallet information.
The benefits of these Smart Accounts are numerous, including:
Transaction batching
Gas sponsorship via paymasters
Session key support
That's why, when you deposit funds through the ZyFAI agent, it automatically deploys a fresh and new smart account on your behalf to manage the funds you just deposited.
ZyFAI uses Session Keys, which are simple keys that provide temporary access to a user's account with specific permissions.
This is especially useful when a user wants to allow an app to execute transactions on their behalf.
During the onboarding process, you will select the protocols you are comfortable engaging with, guided by your personal risk management.
By doing this, you are configuring a session key to interact with specific protocols smart contracts based on your choices. The strength of session keys lies in their ability to limit actions based on predefined permissions.
For example, if you choose three specific protocols, your session key will be configured accordingly. This keeps your funds secure and enables interactions with predefined protocols.
Built on top of the Eliza V.1 framework, the AI agent service makes all decisions regarding the DeFi opportunities associated to your smart account based on predefined parameters.
The AI agent is currently at version V.1.0, focusing on predefined DeFi opportunities on Sonic, specifically targeting stablecoins and single-sided positions. As of now, the agent makes decisions based on these types of opportunities, automatically rebalancing your smart account to capture the highest yields from these predefined positions.
In future versions, new strategies will be introduced, catering to specific goals such as Airdrop Point Farming, Loop Strategies for Leverage, and Degen Pools for higher and quicker yields.
Example of Automated Rebalancing:
Day 0: The agent identifies the Silo wstkscUSD-USDC.e position offering a 13% Annual Percentage Yield (APY) as the highest yield opportunity available.
Day 1: The agent discovers a new, more lucrative opportunity — the AAVE USDC.e position with a 16% APY.
Action Taken: In response to this new information, the agent automatically rebalances your smart account, swapping your funds from Silo to AAVE to capitalize on the higher yield.
