Chaos Engine

Autonomous AI Risk Engine for On-Chain Treasury Management

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Overview

Chaos Engine is an autonomous AI-driven treasury management protocol deployed on BSC Testnet.

It enables:

• Public triggering of market stress events
• AI-based risk evaluation
• On-chain capital rebalancing
• Fully transparent decision proofs

The system operates in two modes:

• Protocol Mode — manages a shared treasury
• Personal Mode — stress tests a user wallet without moving funds

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Problem

On-chain treasuries are reactive and manually managed.
Human operators are slow, emotional, and often respond after damage occurs.

There is no autonomous, verifiable AI system that:

• Reacts instantly to market shocks
• Evaluates risk objectively
• Executes trades on-chain
• Provides decision transparency

Chaos Engine solves this.

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Solution

Chaos Engine introduces a dual-layer architecture:

1. Smart Contract Treasury

   • Holds WBNB + mUSD
   • Emits ChaosTriggered events
   • Executes AI decisions on-chain

2. Autonomous AI Agent

   • Listens for events
   • Fetches balances
   • Requests AI risk analysis
   • Calculates slippage-protected swaps
   • Executes rebalancing transaction

3. Institutional Dashboard

   • Real-time treasury value
   • AI decision breakdown
   • Metadata hash proof
   • Dual mode (Protocol / Personal)

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How It Works

1. User triggers Chaos (pays small BNB fee)
2. Smart contract emits ChaosTriggered
3. Agent receives event
4. AI evaluates:
   • Event type
   • Severity
   • Treasury allocation
5. AI returns:
   • Risk score
   • Action (HOLD / SWAP)
   • Trade percentage
   • Confidence
6. Agent executes decideAndExecute
7. Dashboard displays decision + proof

Fully on-chain execution.
Fully auditable logic.
Human-free rebalancing.

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Architecture

               ┌────────────────────────┐
               │        User UI         │
               │  (Next.js Dashboard)   │
               └────────────┬───────────┘
                            │
                            ▼
               ┌────────────────────────┐
               │   ChaosEngine.sol      │
               │ Smart Contract Treasury│
               │ - Holds WBNB + mUSD    │
               │ - Emits Events         │
               │ - Executes Swaps       │
               └────────────┬───────────┘
                            │ Emits ChaosTriggered
                            ▼
               ┌────────────────────────┐
               │  Autonomous Agent      │
               │  (Node.js Listener)    │
               │ - Fetch balances       │
               │ - Call AI model        │
               │ - Quote Router         │
               │ - Execute decision     │
               └────────────┬───────────┘
                            │
                            ▼
               ┌────────────────────────┐
               │   AI Risk Model        │
               │  (Anthropic Claude)    │
               │ - Risk Score           │
               │ - Action               │
               │ - Trade Size           │
               └────────────────────────┘

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Tech Stack

• Solidity
• Hardhat
• Ethers v6
• Next.js
• PancakeSwap V2
• Anthropic Claude API
• BSC Testnet

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Why It Matters

Chaos Engine demonstrates that AI can evaluate risk, make capital allocation decisions, and execute trades autonomously and transparently on-chain.

It lays the foundation for AI-governed treasury infrastructure in DeFi.

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Future Expansion

• Multi-asset treasury support
• DAO governance layer
• Cross-chain risk routing
• Dynamic trigger incentives

🧪 Testnet Setup (Required for Demo)

This project runs on BNB Chain Testnet.

Get Testnet BNB

Request testnet BNB from: https://testnet.bnbchain.org/faucet-smart

You need BNB for:

• Triggering chaos (protocol mode)
• Executing personal swaps

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Treasury Structure (Protocol Mode)

The protocol treasury is an onchain contract that holds:

• WBNB (volatile asset)
• mUSD (stable asset)

Liquidity for WBNB ↔ mUSD was manually seeded via PancakeSwap V2 on BSC Testnet.

The AI agent does NOT custody user funds. It only manages the protocol treasury balance.

All decisions are:

• Triggered onchain
• Executed onchain
• Verifiable on BscScan

👤 Personal Mode (User Wallet)

Personal mode interacts directly with the user's wallet.

To test:

1. Get testnet BNB
2. Get mUSD using the Mint 1000 mUSD button (test token)
3. Swap small amount tBNB to WBNB via Pancake testnet
4. Click "Stress My Portfolio"
5. Approve rebalance if desired

Swaps execute via Pancake Router directly from user wallet. Chaos Engine never takes custody.