What is Robonet?

Robonet is a decentralized protocol that gives users passive access to automated yield strategies. Users deposit capital into on-chain “agent vaults”, each managed by a number of unique yield-generating strategies that collectively act as network participants on the Allora Network (opens in a new tab).

Allora's inference synthesis mechanism allows multiple AI models to contribute to the output of a single strategy, giving Robonet a tool for producing yield-generating strategies from decentralized AI agents. RoboNet leverages Allora's context awareness and continuous improvement to optimize its strategies and outperform any single model contributing to the network.

How Agent Vaults Work

A vault is a ERC4626-compliant (opens in a new tab) smart contract that securely stores and manages assets on behalf of its users. It automates the investment process, allowing users to deposit their assets and receive agent tokens representing their ownership. The vault uses these assets to generate returns through various strategies, efficiently handling profits and losses. Users can withdraw their assets by redeeming their agent tokens at any time. Vaults provide a convenient and secure way to invest, leveraging the power of decentralized finance (DeFi).

Agent vaults follow a two-actor model

Depositors

Depositors play a crucial role in the RoboNet protocol by depositing their assets, such as ETH or other tokens, into the strategy's vault. In exchange, they receive agent tokens that represent their ownership stake in the total assets managed by the strategy. These agent tokens entitle depositors to a portion of the returns generated by the strategy's investment activities.

As the strategy uses the deposited assets to generate returns, the value of the agent tokens held by depositors appreciates. This increase in share value reflects the profits earned by the strategy. LPs can benefit from this appreciation without actively managing their investments, as the strategy handles all investment activities and profit reporting.

Furthermore, LPs have the flexibility to withdraw their assets by redeeming their agent tokens. The strategy converts the agent tokens back into the underlying assets, allowing LPs to access their investments and any accrued returns. This process ensures that LPs can easily provide liquidity and benefit from the strategy's performance, all while leveraging the security and automation provided by the RoboNet protocol.

Agents

In the RoboNet protocol, "Agents" are designated entities responsible for managing the vaults by executing the strategy's key functions: tend() and report(). These functions ensure the strategy operates smoothly and maximizes returns for depositors.

• The tend(bytes memory) function is called by Agents to maintain the strategy and optimize its performance. This function might involve rebalancing the portfolio, harvesting rewards, or reinvesting profits to ensure the strategy remains efficient and aligned with its objectives. By regularly tending to the strategy, Agents help to enhance its performance and ensure it adapts to changing market conditions.

• The report() function is called by Agents to assess and document the strategy's performance. This involves calculating the total assets, recording any profits or losses, and updating the vault's state accordingly. Reporting is crucial for maintaining transparency and accuracy in the strategy's performance metrics. It allows the vault to account for any changes in asset values and adjust the share price to reflect these changes.

Agents play a vital role in the overall health and efficiency of the vaults. They ensure that the strategies are executed properly, profits are harvested, and any necessary adjustments are made in a timely manner. By doing so, Agents help maximize returns for depositors while maintaining the stability and integrity of the vaults. The use of Agents allows for active management of the strategies, ensuring they remain responsive to market conditions and aligned with the protocol's goals.

Why Robonet?

RoboNet offer a powerful and efficient way to manage decentralized investments. Here's why they stand out:

Automation and Efficiency:

Strategies automate complex investment processes, reducing the need for manual intervention. This leads to more efficient management of assets and helps in optimizing returns. Users can trust the protocol to handle their investments with precision, leveraging smart contract capabilities.

Transparency and Security:

Built on blockchain technology, strategies provide complete transparency and security. Every transaction and action is recorded on the blockchain, ensuring a transparent and immutable record. Users can easily verify the performance and actions of their investments.

Customizable and Flexible:

The protocol allows users to create their own custom strategies, tailored to their specific investment goals and risk tolerance. This flexibility means that users are not limited to predefined strategies and can innovate to achieve better returns.

Fair Profit Distribution:

The mechanism of locking and gradually unlocking profits ensures that all participants benefit fairly from the strategy's performance. It prevents sudden fluctuations in share value, maintaining a stable and predictable return for investors.

Active Management by Agents:

Agents play a crucial role in maintaining and optimizing the strategies. By regularly tending to the strategy and reporting its performance, Agents ensure that the strategies remain efficient and responsive to market conditions. This active management helps in maximizing returns and mitigating risks.

Decentralized Control:

The protocol enables decentralized control over investments, removing the need for traditional intermediaries. This decentralization not only reduces costs but also aligns the incentives of all participants, fostering a more collaborative investment environment.

RoboNet combine the best aspects of decentralized finance (DeFi) with sophisticated investment management techniques, offering a robust solution for modern investors seeking transparency, efficiency, and customization in their investment strategies.