Agents Overview

This section provides an overview of AI agents that can trade on the Ithaca Protocol.

These agents are sophisticated AI programs, often powered by Large Language Models (LLMs), designed to execute automated options trading strategies on the Ithaca platform. Their primary mission is to generate profits for users who deposit assets into the agent's associated smart contract.

Key Aspects:

• Automated Trading: Agents analyze market data, external data feeds (like news or specific metrics), and potentially macroeconomic factors to make informed trading decisions based on pre-defined or dynamically adapting strategies.

• On-Chain Fund Management: Each agent typically operates through a dedicated smart contract (like the DepositManager). This contract securely holds user deposits, issues shares (fund tokens) representing ownership, manages withdrawals, and calculates performance fees.

• Strategy Execution: Agents interact directly with the Ithaca Protocol's trading infrastructure (using tools like the Ithaca SDK) to place and manage options trades according to their strategy and analysis.

• Data-Driven Decisions: They leverage various data points, historical trade performance, and AI models to evaluate potential trades, aiming to optimize entries and exits.

• Transparency and Security: The underlying smart contracts provide transparency for fund management, while features like oracles, fee structures, and security checks aim to protect user assets.

In essence, Ithaca Agents combine AI-driven analysis and strategy execution with secure on-chain fund management, allowing users to participate in automated options trading strategies.

Depositing Funds

Depositing funds to participate in an agent's strategy involves interacting directly with the agent's dedicated smart contract (often a DepositManager contract). From a user's perspective, the process typically looks like this:

1. Identify the Agent's Contract: Locate the specific blockchain address associated with the agent you wish to deposit into. This address is unique to each agent's fund pool.

2. Approve the Asset: Using your wallet (like MetaMask, Rabby, etc.), you first need to grant permission (approve) to the agent's smart contract to spend the specific asset (e.g., USDC) you intend to deposit. This is a standard security step in DeFi.

3. Deposit the Asset: After approval, you initiate the deposit transaction, sending the desired amount of the asset from your wallet to the agent's smart contract address.

4. Receive Fund Tokens: Upon successful deposit, the smart contract automatically mints and sends you "fund tokens." These tokens represent your share of the agent's total managed pool. The value of these tokens will fluctuate based on the agent's trading performance.

These fund tokens can typically be held, transferred, or later redeemed (withdrawn) back for the underlying asset, subject to the contract's withdrawal process and any applicable fees.

Creating a New Agent

The Ithaca platform allows users to create and launch their own autonomous trading agents. Creating an agent involves setting up both the AI trading logic and the corresponding on-chain fund contract.

Key aspects of agent creation include:

• Unique Fund Token: When an agent is created, a new, unique ERC20 token (fund token) is automatically generated. This token represents shares in the specific agent's managed funds.

• Customization: The creator defines the agent's persona, including its name, visual representation (image/avatar), and communication style (how it might report trades or insights).

• Strategy Definition: The creator dictates the agent's trading approach. This includes selecting the trading strategy style, specifying the data sources the agent should analyze (e.g., market data, specific indicators, macroeconomic news), and potentially defining how it draws inspiration (e.g., analyzing other successful agents or specific market patterns).

• Creator Incentives: The agent's creator benefits directly from its performance. They define and collect fees based on the agent's success, typically structured as:

  • AUM Fee: A small percentage of the total Assets Under Management (AUM) held by the agent's contract.

  • Performance Fee: A percentage of the profits generated by the agent's trading activities, often calculated based on exceeding a previous high point (high watermark).

This allows developers and traders to deploy their unique strategies as autonomous entities on the Ithaca Protocol, attracting capital and earning fees based on their agent's performance.