Automated Liquidity Provision System
The MoonCat Automated Liquidity Provision System leverages UniChain's infrastructure and Uniswap v4's advanced capabilities to optimize yields on blue-chip assets. This AI-enhanced system enables users to grow their ETH, WBTC, and stablecoin holdings through sophisticated liquidity management while maintaining exposure to their preferred assets. The AI monitors, volume, fees, hooks, pool sizes and ensure capital is always maximizing fee generation across all approved DEXs pools and superchain blockchains, not just a single DEX.
Core Concept
Single-Asset Growth Users deposit a single asset (ETH, WBTC, or USDT/USDC) and withdraw the same asset plus earned profits. The system handles all complexity of liquidity provision, position management, and optimization behind the scenes.
Profit-Only Fee Model We charge fees only on profits, not deposits. If you deposit 1 BTC and withdraw 1.2 BTC, our fee applies only to the 0.2 BTC profit. This creates perfect alignment between user success and protocol revenue.
Security & Asset Control
Non-Custodial Vault Architecture
Smart Contract Custody: All user funds held in audited ERC-4626 vault contracts
Governance-Defined Boundaries: AI can only execute within approved contracts
No Manual Access: Neither team nor AI can withdraw user funds outside protocol rules
User Sovereignty: Withdraw your assets anytime without permission
AI Execution Within Governance Rails
Approved Contracts Only: AI can only interact with governance-whitelisted pools
Parameter Limits: All AI actions bounded by governance-set parameters
Strategy Constraints: AI operates within predefined risk thresholds
Emergency Overrides: Governance can pause AI execution immediately
Transparent Fund Management
On-Chain Execution: All AI transactions visible on block explorer
No Hidden Operations: Every position change recorded publicly
Audit Trail: Complete history of AI decisions and executions
Real-Time Monitoring: Community can track all AI activities
Key Features
Intelligent Position Management
Single-Asset Deposits: Maintain exposure to your preferred asset without manual pairing
AI-Powered Execution: Algorithms identify and execute on highest-yielding opportunities
Governance Boundaries: AI operates strictly within approved parameters
Automatic Rebalancing: Positions adjust based on market conditions
How AI Execution Works
Pool Approval: Governance votes to whitelist specific pools/strategies
Parameter Setting: Community defines risk limits and position sizes
AI Operation: Within these boundaries, AI optimizes positions autonomously
Continuous Monitoring: AI adjusts positions to maximize returns
Override Capability: Governance maintains emergency pause control
Fee Structure
Base Fee: 3% of profits only (governance adjustable)
No Deposit Fees: Your full deposit works for you
No Withdrawal Fees: Take your principal anytime
Transparent Accounting: Clear tracking of deposits and profits
Technical Implementation
Governance Control Framework
Whitelisted Pools: AI can only use governance-approved liquidity pools
Risk Parameters: Maximum position sizes and IL tolerance set by governance
Execution Limits: Gas spending and rebalancing frequency controls
Circuit Breakers: Automatic stops if unusual activity detected
Supported Assets
ETH: Core ecosystem asset with deepest liquidity
WBTC: Bitcoin exposure with DeFi yields
Stablecoins: USDT/USDC for lower-risk strategies
Risk Management
Impermanent Loss Mitigation: AI strategies minimize IL within set parameters
Smart Rebalancing: Positions adjust before losses exceed thresholds
Diversification: Exposure limits prevent overconcentration
User-Controlled Withdrawals: Always maintain ability to exit positions
How It Works
Deposit: Send assets to vault contract
AI Analysis: Evaluates opportunities within approved pools
Autonomous Execution: AI deploys capital within governance parameters
Active Management: Continuous optimization of positions
Withdraw: Retrieve your assets directly from vault contract
Benefits for Users
Automated Efficiency: AI executes 24/7 within safe parameters
Governance Protection: Community defines all operational boundaries
Professional Management: Sophisticated strategies without custody risk across multiple DEXs and chains
Fair Fees: Pay only when you profit
Full Transparency: All AI actions visible on-chain
Integration with MCT Ecosystem
Governance Authority: MCT holders define AI operational parameters
Buyback Mechanism: Creates value for MCT holders
No Token Requirements: Access based on deposits, not MCT holdings
Continuous Improvement: AI learns within governance-set boundaries
This automated liquidity system represents a new paradigm in DeFi—where AI executes sophisticated strategies autonomously but only within community-defined guardrails, combining the efficiency of automation with the security of decentralized governance.
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