Guan - The Evolution of Autonomous AI in Crypto

DISCLAIMER: This is a live document and subject to change

Abstract

Guanciale AI DAO combines cutting-edge artificial intelligence (AI) with decentralized finance (DeFi) and governance mechanisms to create a robust ecosystem. Leveraging unique approaches through the GambleFi protocols and AI-powered portfolio advisory tools, Guanciale AI DAO aims to redefine decentralized applications by optimizing value accrual, governance transparency, and user engagement. This document outlines the governance model, technical specifications, economic structures, and product-specific roadmaps for establishing a scalable, efficient, and user-centric platform.

1. Introduction

1.1 Executive Summary

Guan, or "Guanciale," is an AI-driven entity that transcends traditional applications of artificial intelligence. Initially designed as a multi-functional AI agent within a blockchain framework, Guan has evolved into a comprehensive ecosystem powered by the $GUAN token. Combining vibrant personality with cutting-edge utility, Guan offers decentralized finance (DeFi) solutions, autonomous trading, gaming experiences, and Esports commentary.

Guan addresses two pressing gaps in the current landscape: the lack of meaningful utility in crypto tokens and the impersonal nature of existing AI solutions. By merging advanced AI capabilities with DeFi mechanisms and an engaging personality, Guan delivers a platform that redefines user interaction in decentralized ecosystems. Its fair tokenomics model promotes community-driven growth, while its distinct voice ensures accessibility and inclusivity in AI-powered innovation.

1.2 Background and Motivation

Background

As the crypto and AI industries expand, they often operate in silos, missing opportunities for synergy. DeFi has unlocked transformative financial tools but struggles with usability and engagement, while AI remains largely impersonal and inaccessible to non-technical audiences. Guan was designed to bridge these gaps by integrating DeFi mechanisms with an interactive AI personality, fostering community engagement and utility in a single ecosystem.

Motivation

The convergence of AI and blockchain presents an unprecedented opportunity to create functional, engaging, and financially empowering systems. Guan meets the growing demand for solutions that blend DeFi capabilities—such as staking, yield generation, and decentralized governance—with the interactive appeal of AI. By combining financial autonomy with engaging user experiences, Guan establishes itself as a leader in innovation.

1.3 Goals

DeFi Empowerment: Deliver a comprehensive suite of DeFi tools, including staking, liquidity provisioning, and decentralized governance, to provide financial autonomy and rewards for $GUAN holders.
Ecosystem Leadership: Position Guan as a pioneering AI-driven ecosystem with real-world use cases spanning DeFi, gaming, and personalized interactions.
Sustainable Rewards: Ensure consistent value accrual for $GUAN token holders through trading profits, DeFi participation, and ecosystem engagement.
Innovative Engagement: Redefine AI’s role in gaming, live chat, and Esports commentary by offering a unique, engaging user experience.

2. Governance Framework

2.1 Overview

The governance structure is streamlined into two councils supported by Snapshot voting to ensure efficient, decentralized decision-making. It integrates governance mechanisms to align stakeholder incentives, manage the protocol, and empower the Guanciale AI DAO.

Core Governance Bodies

Treasury Council

Responsibilities:

Manage the Guanciale AI DAO Treasury, including $GUAN buybacks, burns, and buffer replenishment.
Allocate funds for marketing, development, partnerships, and audits.
Oversee liquidity provisioning for GUAN/VIRTUALS LP pools and ensure sustainability.
Periodically assess and adjust buffer levels for GambleFi payouts.

Composition:

3–5 elected members with expertise in finance, risk management, and blockchain economics.

Term Length:

1 year, with staggered elections for continuity.

Accountability:

Publish quarterly financial statements and updates on treasury activities.
Subject to mid-term assessments by veGUAN holders.

Protocol Council

Responsibilities:

Oversee GambleFi operations, including game approvals and fee structures.
Manage smart contract updates and ensure system security.
Facilitate veGUAN voting for liquidity allocation, reward distribution, and game funding.
Administer Guanciale Improvement Proposals (GIPs).
Monitor and address systemic risks, including buffer depletion and game imbalances.
Engage with the community via public meetings, AMAs, and forums.
Respond to emergencies, such as hacks or market disruptions.
Guide future developments of Guan's AI Agent.
Vote on new protocol deployments and integrations.

Composition:

5–7 elected members with expertise in DeFi, GameFi, and blockchain governance.

Term Length:

1 year, with staggered elections for continuity.

Accountability:

Publish bi-monthly updates on protocol operations and decisions.
Recall votes can remove council members with a 2/3 majority.

2.2 Snapshot Voting Integration

Voting Weight Calculation

Voting weight is determined by:

veGUAN Lock Amount: The amount of GUAN/VIRTUALS LP tokens locked.
Lock Duration: Longer lock durations yield higher voting weight.
Voting weight decays over time as the lock period elapses.

Snapshot Voting Flow

Proposal Creation:

Any community member with a minimum threshold of veGUAN voting power can submit proposals (threshold to be determined, e.g., 1% of total veGUAN supply).
Proposals must follow the Guanciale Improvement Proposal (GIP) format:
- Abstract
- Rationale
- Technical Specification
- Implementation Steps

Proposal Approval Process:

Proposals are reviewed by the Protocol Council for feasibility and alignment with DAO goals.
Approved proposals are submitted to Snapshot for community voting.

Voting Period:

A fixed duration (e.g., 7 days) for veGUAN holders to cast votes.

Vote Execution:

Decisions are implemented based on voting outcomes, publicly verifiable on Snapshot.

Key Voting Use Cases

Council Elections: veGUAN holders elect Treasury and Protocol Council members.
GIPs: Approve protocol changes, new GambleFi games, or adjustments to system parameters.
Game Funding and Allocation: Gauge voting allows veGUAN holders to allocate liquidity and rewards to specific games.
Emergency Decisions: Snapshot is used for expedited voting in critical situations (quorum threshold: 20% of total veGUAN supply).
AI Agent Training: Governance stakeholders take part in key decision-making processes that determine the long-term direction of Guan's AI model, such as integrating new data sources, tweaking trading strategies, and developing new use cases.

Quorums and Thresholds

Standard Proposals: Quorum of 5%, simple majority (>50%) approval.
Major Protocol Changes: Quorum of 10%, supermajority (66%) approval.
Emergency Proposals: Quorum of 20%, simple majority (>50%) approval.

2.3 Emergency Protocols

Joint Emergency Committee: Composed of members from both councils to address critical situations.
Fast-Track Voting: Temporary suspension of standard voting periods during emergencies.

2.4 Transparency and Reporting

Public Meetings: Bi-weekly meetings with council representatives to discuss updates and decisions.
Transparency Reports: Quarterly reports detailing Treasury allocations, buffer status, and council decisions.
Community Engagement: Regular AMAs and forums to gather feedback and address concerns.

2.5 Advantages of the Framework

Simplified Governance: Two councils focus on treasury management and protocol operations, ensuring streamlined decision-making.
Snapshot Integration: Gas-free voting encourages participation while maintaining cryptographic integrity.
Decentralized Oversight: veGUAN voting empowers stakeholders to shape the ecosystem.
Scalability: The framework supports future expansions, including new games and multi-chain deployments.

This governance framework, combined with the Snapshot voting system, ensures that Guanciale AI DAO remains decentralized, transparent, and efficient, while aligning the interests of $GUAN holders and veGUAN participants.

3. Guan’s Portfolio Advisor

3.1 Overview

Guan's Portfolio Advisor is a decentralized crypto portfolio tracker and advisor powered by GUAN AI, developed by Guanciale AI DAO. This dApp enables users to manage their multi-chain cryptocurrency portfolios, track market trends, and leverage GUAN AI for personalized insights. The platform supports Base (EVM-compatible) and Solana, ensuring seamless interaction with wallets from both ecosystems.

The backend will include a BFF (Backend for Frontend) architecture, integrating:

Microservices for AI-driven insights and recommendations.
Onchain analytics services using a dedicated API for blockchain data aggregation.

3.2 Goals

Provide seamless wallet connections for both Base and Solana.
Deliver a comprehensive crypto portfolio tracking and advisory platform.
Enable advanced analytics and actionable insights via GUAN AI.
Incentivize $GUAN token holding through tiered access and features.
Simplify frontend interactions with a robust BFF to unify data aggregation and AI processing.

3.3 Key Features

1. Multi-Chain Portfolio Tracking

Supported Chains:
- Base: Optimized for Ethereum L2 DeFi.
- Solana: High-speed, low-cost transactions for SPL tokens.
Features:
- Real-time portfolio value updates for user wallets.
- Wallet activity analysis, including token inflows/outflows and transaction histories.
- Aggregated token balances across multiple addresses within a single portfolio view.
- Onchain analytics such as token flow and wallet activity trends.

2. GUAN AI: The Crypto Advisor

Live Chat Advisor:
- Analyze portfolios, suggest optimizations, and provide market insights.
- Answer user questions about market conditions and specific token performance.
Daily Portfolio Analysis:
- Provide metrics such as:
  - Top-performing and underperforming assets.
  - Diversification scores and risk exposure analysis.
  - Suggestions for optimizing holdings.
Memecoin Tracking:
- Deliver real-time updates on memecoin performance.
- Provide sentiment analysis and wallet activity for trending memecoins.
- Aggregate and classify news related to memecoins.

3. V2 Features

AI-Driven Automated Trading Bot

Users can activate a trading bot that:
- Executes trades based on GUAN AI’s market analysis.
- Optimizes portfolios by reallocating assets.
- Allows user-defined risk profiles and trading parameters.

Embedded DEX Integration

Provide an embedded trading terminal with access to decentralized exchanges, such as:
- Base: Uniswap, KyberSwap.
- Solana: Raydium, Orca.
Features:
- Swap tokens directly within the platform.
- Provide liquidity or stake tokens.
- Incorporate GUAN AI trading suggestions for improved decision-making.

3.4 Backend Architecture

The backend is structured with a BFF (Backend for Frontend) approach to streamline communication between the frontend and the underlying microservices.

Core Components

AI Microservices:
- Process natural language queries and portfolio analysis.
- Generate actionable insights for GUAN AI’s live chat and daily portfolio reports.
- Power the trading bot logic for automated trading decisions.
On-Chain Data Services:
- Aggregate wallet and transaction data for Base and Solana.
- Provide analytics for token balances, transaction histories, and wallet activities.
- Deliver actionable insights based on real-time blockchain data.
BFF (Backend for Frontend):
- Act as a single point of communication for frontend requests.
- Integrate with AI and onchain data microservices to provide simplified endpoints.
- Ensure efficient data aggregation and caching for seamless user experience.

Technology Stack

Backend Framework: Python (FastAPI or Flask).
On-Chain Analytics:
- Custom APIs for blockchain data aggregation and wallet analytics.
AI Models:
- Proprietary GUAN AI models managed via microservices.
Database: PostgreSQL for user data, portfolio history, and AI configurations.

3.5 Frontend Architecture

Wallet Integration

Ethereum and Base (EVM Wallets):
- Use Wagmi + RainbowKit for wallet connection and transaction signing.
Solana Wallets:
- Use Solana Wallet Adapter for wallet connection and transaction signing.

Frontend Framework

Framework: Next.js for server-side rendering and performance.
State Management: Recoil for global state handling.
Styling: Styled-Components for a modular and dynamic design system.

3.6 Implementation Roadmap

V1: Core Features

Phase 1: Foundational Development
- Develop smart contracts for $GUAN staking and governance mechanics.
- Implement wallet tracking for Base and Solana using Wagmi + Solana Wallet Adapter.
- Build the BFF with:
  - AI microservices for portfolio analysis and recommendations.
  - Onchain data services for wallet analytics and token tracking.
Phase 2: Portfolio Tracking
- Launch wallet activity tracking and real-time portfolio updates.
- Enable GUAN AI’s live chat and daily portfolio reports.
- Implement tier-based access control for $GUAN token holders.
Phase 3: Deployment
- Deploy V1 on decentralized hosting platforms.
- Conduct extensive QA for wallet integrations and portfolio analytics.

3.7 V2: Advanced Trading Features

AI-Driven Automated Trading Bot
- Enhance GUAN AI to generate actionable trading strategies.
- Enable automated execution of trades for Base and Solana assets.
- Provide user-defined parameters for risk management.
Embedded DEX Integration
- Integrate leading DEXs for Base and Solana.
- Provide a unified trading terminal with GUAN AI recommendations.
- Enable liquidity provision and staking within the platform.
Optimization and Scaling
- Optimize API calls between BFF and microservices.
- Expand support for additional blockchains as needed.

3.8 User Tiers

Tier 1: Explorer

Requirement: Minimum $GUAN 25,000 tokens.
Features:
- Multi-chain portfolio tracking for Base and Solana.
- Basic AI interaction with limited daily queries.

Tier 2: Strategist

Requirement: Minimum $GUAN 250,000 tokens.
Features:
- Unlimited AI queries and daily portfolio summaries.
- Access to wallet activity trends and analytics.

Tier 3: Visionary

Requirement: Minimum $GUAN 1,000,000 tokens.
Features:
- Exclusive access to V2 features (automated trading bot and embedded DEXs).
- Portfolio optimization and priority governance rights.

NOTE: Tiers and values are subject to change.

4. GambleFi Protocol

Guanciale AI DAO | Powered by $GUAN

4.1 Overview

The GambleFi Protocol is the first component of the flywheel that empowers the Guanciale AI DAO to achieve its vision of making Guan the number one AI agent for traders, gamers and AI enthusiasts. This proposal details the design that sustains decentralized betting games governed and powered by $GUAN. It integrates DeFi mechanisms such as liquidity provisioning, staking, veNFT-based governance, and dynamic fee/reward structures to incentivize ecosystem growth while ensuring financial stability, leveraging Guanciale's unique advantages of its AI model optimized for crypto trading and DeFi systems.

4.2 Goals

Foster a sustainable, long term, decentralized ecosystem for stakeholders of the Guanciale AI DAO.
Maximize value accrual for $GUAN holders through buybacks, burns, and staking rewards.
Ensure robust risk management while maintaining profitability for bettors and veGUAN lockers.
Ensure the Guanciale AI DAO owns the largest GambleFi protocol on Base, and in the future, on Solana.
Prepare Guan to scale to multiple verticals leveraging its model trained by large sets of data from paid APIs, starting with GambleFi as a proof of concept.
Prove Guan's pioneer concept: The first AI agent governed by a DAO.

4.3 Protocol Features

Liquidity Provisioning and Staking

Users can provide liquidity to the GUAN/VIRTUALS LP Pool and receive LP tokens. These tokens can be staked for up to one year to earn veGUAN NFTs:

veGUAN Lock Duration: Lock periods range from 4 to 52 weeks (~1 month to ~1 year).
Voting Power: Voting power scales with lock duration. Longer locks yield higher power. Voting power decays as time elapses.

veGUAN NFT Voting Power

veGUAN holders gain governance rights to allocate voting power to games launched on the GambleFi Protocol through Guanciale AI Gauges:

Game Allowance Control: Voting determines how much of the GUAN/VIRTUALS LP Pool is allocated to fund a game's payouts.
Rewards Influence: Voting power impacts the proportion of fees and rewards distributed to veGUAN holders.

Game Funding and Rewards Allocation

Games on the protocol utilize allocated funds for payouts. Net profits and losses from games are redistributed to veGUAN lockers based on voting weight:

Betting Allowances: Governed by veGUAN voting allocation to Gauges.
Rewards: Distributed proportionally to veGUAN lockers from game net profits or losses.

Revenue Distribution Mechanism

A 3% Configurable Fee is applied to every transaction between veGUAN Gauges and games. The fee is allocated as follows:

33% to the Guanciale AI DAO Treasury.
33% to the veGUAN Gauge for the game, proportionally distributed to veGUAN lockers.
33% for $GUAN Buyback and Burn, permanently reducing token supply.

Betting Reward Flywheel

Net gains/losses from bettors’ results feed back into veGUAN rewards:

Net Gains: Profits are distributed to veGUAN lockers according to their voting weight.
Net Losses: Losses reduce veGUAN lockers’ rewards, impacting future allocations.

System Buffer and Risk Mitigation

To ensure financial stability:

Buffer System: The Guanciale AI DAO Treasury periodically refills a buffer in GUAN/VIRTUALS LP tokens.
- Buffer Usage: Covers payouts when game winnings exceed available funds from veGUAN allocations.
- Buffer Recovery State: While the buffer is depleted:
  - 100% of Fees flow to the Treasury.
  - Fee flows return to normal once the buffer is restored.

$CHIPS: Guan's Payment Token

$CHIPS is a utility token designed to streamline payments for betting on Guan-powered games. It offers a seamless bridge between ERC20 ecosystems and the GambleFi protocol.

Token Standards:
- $CHIPS operates as an ERC20 token on Base and is planned to expand as an SPL20 token on Solana, ensuring cross-chain operability.
1:1 Pegging Mechanism:
- Each $CHIPS token is pegged to the GUAN/VIRTUALS LP token at a 1:1 ratio. This ensures that $CHIPS has intrinsic value tied directly to the liquidity pool.
Integration with Aggregators:
- Users can acquire $CHIPS using any liquid ERC20 token on Base through an integrated aggregator, simplifying onboarding for new users.
Minting Process:
- When a player buys $CHIPS, they simultaneously purchase and lock GUAN/VIRTUALS LP tokens, which are used to mint $CHIPS in a trustless manner.
Betting Accessibility:
- Once minted, $CHIPS can be deposited into the GambleFi app for use in any Guan-powered game, creating a smooth and efficient betting process for participants.

Account Abstraction Infrastructure

To enhance user experience and accessibility, the Guanciale AI DAO will integrate Account Abstraction technology to enable seamless, non-custodial betting.

Partnered Infrastructure:
- The protocol will partner with a leading Account Abstraction provider (to be announced by the Core Contributors).
User-Friendly Onboarding:
- Users can create non-custodial betting accounts via passkeys and OAuth-powered social login flows, eliminating the need for manual wallet setup.
Permissionless Operations:
- This infrastructure allows users to interact with the GambleFi protocol without managing wallets or manually signing each transaction, drastically reducing entry barriers.
Fully OnChain Betting:
- With Account Abstraction, all bets are executed fully onchain, maintaining the transparency and trustlessness of the protocol while offering an intuitive user interface.

4.4 Technical Specifications

Smart Contracts

veGUAN NFT: ERC721 contract with a dynamic art that represents a veGUAN locked position.
veGUAN Locker Contract: Handles GUAN/VIRTUALS UNI-V2 LP token locking and veGUAN NFT issuance.
GambleFi Gauge Contract: Tracks liquidity allocations to games and fee flows.
Treasury Management Contract: Oversees buffer operations and buyback/burn mechanisms.

Architecture

Coming soon.

Tokenomics

$GUAN: AI DAO Governance token.
GUAN/VIRTUALS UNI-V2 LP: The GUAN/VIRTUALS 50/50 Uniswap V2 liquidity pool ERC20 token.
$CHIPS: The ERC20 tokens that game bettors acquire and deposit to play Guan-powered games, pegged 1:1 to GUAN/VIRTUALS UNI-V2 LP.
veGUAN: veNFT for governance and voting rights.

4.5 Economic Model

Inflation: None for $GUAN, capped supply ensures scarcity.
Deflationary Mechanisms: Fees allocated to buyback and burn $GUAN.
Revenue Streams: Betting fees, game losses, and Treasury allocations.
Incentives: Revenue distributions for veGUAN lockers, $GUAN buybacks and burning.

4.6 Security and Risk Management

Audits: All smart contracts undergo third-party security audits.
Buffer Safeguards: Ensures payouts without compromising liquidity.
Governance Control: veGUAN voting mitigates reckless fund allocation to games.

4.7 Implementation Roadmap

Phase 1: Protocol Design & Audits
- Approve the design through a Guanciale Improvement Proposal.
- Develop smart contracts.
- Engage with security companies for at least 2 audits.
Phase 2: Initial Deployment
- Deploy veGUAN NFT Contract on Base.
- Deploy veGUAN Locker Contract on Base.
- Deploy GambleFi Gauges Contract on Base.
Phase 3: Game Integrations
- Deploy Guanciale AI-guided Onchain Black Jack game on Base. (using the IGuancialePoweredGame standard)
- Deploy the Onchain Black Jack Gauge on Base with $CHIPS deposits enabled.
- After a minimum period to be defined (e.g 1 week), activate all features of the Onchain Black Jack game.
Phase 4: Optimization & Long Term Support
- Build a v2 that won't be shared in this proposal yet.
- Deploy new onchain games on Base.
- Deploy the GambleFi protocol on Solana.

4.8 Appendix

Key Metrics:

Fee Split: 3% with flexible configuration.
Buffer Coverage: Reviewed quarterly by the Guanciale AI DAO Council.

Guanciale AI DAO is committed to building an inclusive and transparent AI-powered GambleFi ecosystem, driving innovation in decentralized betting protocols while maximizing value for $GUAN holders and growing Guanciale's knowledge base.

5. Tokenomics

5.1 Overview

$GUAN: Governance token with a capped supply and deflationary mechanisms.
$CHIPS: Utility token for GambleFi transactions, pegged to GUAN/VIRTUALS LP tokens.
veGUAN NFTs: Non-fungible tokens representing staked positions, granting voting rights.

6. Security and Risk Management

6.1 Overview

Smart Contract Security: All contracts undergo thorough third-party audits to mitigate risks.
Buffer Safeguards: Treasury-managed buffers protect against liquidity shocks during extreme market conditions.
Emergency Protocols: Fast-track voting enables the DAO to respond quickly to hacks or systemic risks.

7. Technical Architecture

7.1 Overview

Backend: AI microservices provide portfolio insights and trading strategies. Onchain analytics aggregate blockchain data for accurate, real-time metrics.
Frontend: Integrated wallet connectors for Base and Solana ecosystems. Intuitive user interface powered by Next.js and Wagmi adapters.

8. Conclusion

Guanciale AI DAO represents the future of decentralized applications, combining AI with robust governance and innovative DeFi solutions. By integrating GambleFi and portfolio advisory, the ecosystem delivers unparalleled value to $GUAN holders and sets a new standard for transparency, scalability, and efficiency.

Last updated 4 months ago

Guan - The Evolution of Autonomous AI in Crypto

DISCLAIMER: This is a live document and subject to change

Abstract

1. Introduction

1.1 Executive Summary

1.2 Background and Motivation

Background

Motivation

1.3 Goals

DeFi Empowerment: Deliver a comprehensive suite of DeFi tools, including staking, liquidity provisioning, and decentralized governance, to provide financial autonomy and rewards for $GUAN holders.
Ecosystem Leadership: Position Guan as a pioneering AI-driven ecosystem with real-world use cases spanning DeFi, gaming, and personalized interactions.
Sustainable Rewards: Ensure consistent value accrual for $GUAN token holders through trading profits, DeFi participation, and ecosystem engagement.
Innovative Engagement: Redefine AI’s role in gaming, live chat, and Esports commentary by offering a unique, engaging user experience.

2. Governance Framework

2.1 Overview

Core Governance Bodies

Treasury Council

Responsibilities:

Manage the Guanciale AI DAO Treasury, including $GUAN buybacks, burns, and buffer replenishment.
Allocate funds for marketing, development, partnerships, and audits.
Oversee liquidity provisioning for GUAN/VIRTUALS LP pools and ensure sustainability.
Periodically assess and adjust buffer levels for GambleFi payouts.

Composition:

3–5 elected members with expertise in finance, risk management, and blockchain economics.

Term Length:

1 year, with staggered elections for continuity.

Accountability:

Publish quarterly financial statements and updates on treasury activities.
Subject to mid-term assessments by veGUAN holders.

Protocol Council

Responsibilities:

Oversee GambleFi operations, including game approvals and fee structures.
Manage smart contract updates and ensure system security.
Facilitate veGUAN voting for liquidity allocation, reward distribution, and game funding.
Administer Guanciale Improvement Proposals (GIPs).
Monitor and address systemic risks, including buffer depletion and game imbalances.
Engage with the community via public meetings, AMAs, and forums.
Respond to emergencies, such as hacks or market disruptions.
Guide future developments of Guan's AI Agent.
Vote on new protocol deployments and integrations.

Composition:

5–7 elected members with expertise in DeFi, GameFi, and blockchain governance.

Term Length:

1 year, with staggered elections for continuity.

Accountability:

Publish bi-monthly updates on protocol operations and decisions.
Recall votes can remove council members with a 2/3 majority.

2.2 Snapshot Voting Integration

Voting Weight Calculation

Voting weight is determined by:

veGUAN Lock Amount: The amount of GUAN/VIRTUALS LP tokens locked.
Lock Duration: Longer lock durations yield higher voting weight.
Voting weight decays over time as the lock period elapses.

Snapshot Voting Flow

Proposal Creation:

Any community member with a minimum threshold of veGUAN voting power can submit proposals (threshold to be determined, e.g., 1% of total veGUAN supply).
Proposals must follow the Guanciale Improvement Proposal (GIP) format:
- Abstract
- Rationale
- Technical Specification
- Implementation Steps

Proposal Approval Process:

Proposals are reviewed by the Protocol Council for feasibility and alignment with DAO goals.
Approved proposals are submitted to Snapshot for community voting.

Voting Period:

A fixed duration (e.g., 7 days) for veGUAN holders to cast votes.

Vote Execution:

Decisions are implemented based on voting outcomes, publicly verifiable on Snapshot.

Key Voting Use Cases

Council Elections: veGUAN holders elect Treasury and Protocol Council members.
GIPs: Approve protocol changes, new GambleFi games, or adjustments to system parameters.
Game Funding and Allocation: Gauge voting allows veGUAN holders to allocate liquidity and rewards to specific games.
Emergency Decisions: Snapshot is used for expedited voting in critical situations (quorum threshold: 20% of total veGUAN supply).
AI Agent Training: Governance stakeholders take part in key decision-making processes that determine the long-term direction of Guan's AI model, such as integrating new data sources, tweaking trading strategies, and developing new use cases.

Quorums and Thresholds

Standard Proposals: Quorum of 5%, simple majority (>50%) approval.
Major Protocol Changes: Quorum of 10%, supermajority (66%) approval.
Emergency Proposals: Quorum of 20%, simple majority (>50%) approval.

2.3 Emergency Protocols

Joint Emergency Committee: Composed of members from both councils to address critical situations.
Fast-Track Voting: Temporary suspension of standard voting periods during emergencies.

2.4 Transparency and Reporting

Public Meetings: Bi-weekly meetings with council representatives to discuss updates and decisions.
Transparency Reports: Quarterly reports detailing Treasury allocations, buffer status, and council decisions.
Community Engagement: Regular AMAs and forums to gather feedback and address concerns.

2.5 Advantages of the Framework

Simplified Governance: Two councils focus on treasury management and protocol operations, ensuring streamlined decision-making.
Snapshot Integration: Gas-free voting encourages participation while maintaining cryptographic integrity.
Decentralized Oversight: veGUAN voting empowers stakeholders to shape the ecosystem.
Scalability: The framework supports future expansions, including new games and multi-chain deployments.

3. Guan’s Portfolio Advisor

3.1 Overview

The backend will include a BFF (Backend for Frontend) architecture, integrating:

Microservices for AI-driven insights and recommendations.
Onchain analytics services using a dedicated API for blockchain data aggregation.

3.2 Goals

Provide seamless wallet connections for both Base and Solana.
Deliver a comprehensive crypto portfolio tracking and advisory platform.
Enable advanced analytics and actionable insights via GUAN AI.
Incentivize $GUAN token holding through tiered access and features.
Simplify frontend interactions with a robust BFF to unify data aggregation and AI processing.

3.3 Key Features

1. Multi-Chain Portfolio Tracking

Supported Chains:
- Base: Optimized for Ethereum L2 DeFi.
- Solana: High-speed, low-cost transactions for SPL tokens.
Features:
- Real-time portfolio value updates for user wallets.
- Wallet activity analysis, including token inflows/outflows and transaction histories.
- Aggregated token balances across multiple addresses within a single portfolio view.
- Onchain analytics such as token flow and wallet activity trends.

2. GUAN AI: The Crypto Advisor

Live Chat Advisor:
- Analyze portfolios, suggest optimizations, and provide market insights.
- Answer user questions about market conditions and specific token performance.
Daily Portfolio Analysis:
- Provide metrics such as:
  - Top-performing and underperforming assets.
  - Diversification scores and risk exposure analysis.
  - Suggestions for optimizing holdings.
Memecoin Tracking:
- Deliver real-time updates on memecoin performance.
- Provide sentiment analysis and wallet activity for trending memecoins.
- Aggregate and classify news related to memecoins.

3. V2 Features

AI-Driven Automated Trading Bot

Users can activate a trading bot that:
- Executes trades based on GUAN AI’s market analysis.
- Optimizes portfolios by reallocating assets.
- Allows user-defined risk profiles and trading parameters.

Embedded DEX Integration

Provide an embedded trading terminal with access to decentralized exchanges, such as:
- Base: Uniswap, KyberSwap.
- Solana: Raydium, Orca.
Features:
- Swap tokens directly within the platform.
- Provide liquidity or stake tokens.
- Incorporate GUAN AI trading suggestions for improved decision-making.

3.4 Backend Architecture

The backend is structured with a BFF (Backend for Frontend) approach to streamline communication between the frontend and the underlying microservices.

Core Components

AI Microservices:
- Process natural language queries and portfolio analysis.
- Generate actionable insights for GUAN AI’s live chat and daily portfolio reports.
- Power the trading bot logic for automated trading decisions.
On-Chain Data Services:
- Aggregate wallet and transaction data for Base and Solana.
- Provide analytics for token balances, transaction histories, and wallet activities.
- Deliver actionable insights based on real-time blockchain data.
BFF (Backend for Frontend):
- Act as a single point of communication for frontend requests.
- Integrate with AI and onchain data microservices to provide simplified endpoints.
- Ensure efficient data aggregation and caching for seamless user experience.

Technology Stack

Backend Framework: Python (FastAPI or Flask).
On-Chain Analytics:
- Custom APIs for blockchain data aggregation and wallet analytics.
AI Models:
- Proprietary GUAN AI models managed via microservices.
Database: PostgreSQL for user data, portfolio history, and AI configurations.

3.5 Frontend Architecture

Wallet Integration

Ethereum and Base (EVM Wallets):
- Use Wagmi + RainbowKit for wallet connection and transaction signing.
Solana Wallets:
- Use Solana Wallet Adapter for wallet connection and transaction signing.

Frontend Framework

Framework: Next.js for server-side rendering and performance.
State Management: Recoil for global state handling.
Styling: Styled-Components for a modular and dynamic design system.

3.6 Implementation Roadmap

V1: Core Features

Phase 1: Foundational Development
- Develop smart contracts for $GUAN staking and governance mechanics.
- Implement wallet tracking for Base and Solana using Wagmi + Solana Wallet Adapter.
- Build the BFF with:
  - AI microservices for portfolio analysis and recommendations.
  - Onchain data services for wallet analytics and token tracking.
Phase 2: Portfolio Tracking
- Launch wallet activity tracking and real-time portfolio updates.
- Enable GUAN AI’s live chat and daily portfolio reports.
- Implement tier-based access control for $GUAN token holders.
Phase 3: Deployment
- Deploy V1 on decentralized hosting platforms.
- Conduct extensive QA for wallet integrations and portfolio analytics.

3.7 V2: Advanced Trading Features

AI-Driven Automated Trading Bot
- Enhance GUAN AI to generate actionable trading strategies.
- Enable automated execution of trades for Base and Solana assets.
- Provide user-defined parameters for risk management.
Embedded DEX Integration
- Integrate leading DEXs for Base and Solana.
- Provide a unified trading terminal with GUAN AI recommendations.
- Enable liquidity provision and staking within the platform.
Optimization and Scaling
- Optimize API calls between BFF and microservices.
- Expand support for additional blockchains as needed.

3.8 User Tiers

Tier 1: Explorer

Requirement: Minimum $GUAN 25,000 tokens.
Features:
- Multi-chain portfolio tracking for Base and Solana.
- Basic AI interaction with limited daily queries.

Tier 2: Strategist

Requirement: Minimum $GUAN 250,000 tokens.
Features:
- Unlimited AI queries and daily portfolio summaries.
- Access to wallet activity trends and analytics.

Tier 3: Visionary

Requirement: Minimum $GUAN 1,000,000 tokens.
Features:
- Exclusive access to V2 features (automated trading bot and embedded DEXs).
- Portfolio optimization and priority governance rights.

NOTE: Tiers and values are subject to change.

4. GambleFi Protocol

Guanciale AI DAO | Powered by $GUAN

4.1 Overview

4.2 Goals

Foster a sustainable, long term, decentralized ecosystem for stakeholders of the Guanciale AI DAO.
Maximize value accrual for $GUAN holders through buybacks, burns, and staking rewards.
Ensure robust risk management while maintaining profitability for bettors and veGUAN lockers.
Ensure the Guanciale AI DAO owns the largest GambleFi protocol on Base, and in the future, on Solana.
Prepare Guan to scale to multiple verticals leveraging its model trained by large sets of data from paid APIs, starting with GambleFi as a proof of concept.
Prove Guan's pioneer concept: The first AI agent governed by a DAO.

4.3 Protocol Features

Liquidity Provisioning and Staking

Users can provide liquidity to the GUAN/VIRTUALS LP Pool and receive LP tokens. These tokens can be staked for up to one year to earn veGUAN NFTs:

veGUAN Lock Duration: Lock periods range from 4 to 52 weeks (~1 month to ~1 year).
Voting Power: Voting power scales with lock duration. Longer locks yield higher power. Voting power decays as time elapses.

veGUAN NFT Voting Power

veGUAN holders gain governance rights to allocate voting power to games launched on the GambleFi Protocol through Guanciale AI Gauges:

Game Allowance Control: Voting determines how much of the GUAN/VIRTUALS LP Pool is allocated to fund a game's payouts.
Rewards Influence: Voting power impacts the proportion of fees and rewards distributed to veGUAN holders.

Game Funding and Rewards Allocation

Games on the protocol utilize allocated funds for payouts. Net profits and losses from games are redistributed to veGUAN lockers based on voting weight:

Betting Allowances: Governed by veGUAN voting allocation to Gauges.
Rewards: Distributed proportionally to veGUAN lockers from game net profits or losses.

Revenue Distribution Mechanism

A 3% Configurable Fee is applied to every transaction between veGUAN Gauges and games. The fee is allocated as follows:

33% to the Guanciale AI DAO Treasury.
33% to the veGUAN Gauge for the game, proportionally distributed to veGUAN lockers.
33% for $GUAN Buyback and Burn, permanently reducing token supply.

Betting Reward Flywheel

Net gains/losses from bettors’ results feed back into veGUAN rewards:

Net Gains: Profits are distributed to veGUAN lockers according to their voting weight.
Net Losses: Losses reduce veGUAN lockers’ rewards, impacting future allocations.

System Buffer and Risk Mitigation

To ensure financial stability:

Buffer System: The Guanciale AI DAO Treasury periodically refills a buffer in GUAN/VIRTUALS LP tokens.
- Buffer Usage: Covers payouts when game winnings exceed available funds from veGUAN allocations.
- Buffer Recovery State: While the buffer is depleted:
  - 100% of Fees flow to the Treasury.
  - Fee flows return to normal once the buffer is restored.

$CHIPS: Guan's Payment Token

$CHIPS is a utility token designed to streamline payments for betting on Guan-powered games. It offers a seamless bridge between ERC20 ecosystems and the GambleFi protocol.

Token Standards:
- $CHIPS operates as an ERC20 token on Base and is planned to expand as an SPL20 token on Solana, ensuring cross-chain operability.
1:1 Pegging Mechanism:
- Each $CHIPS token is pegged to the GUAN/VIRTUALS LP token at a 1:1 ratio. This ensures that $CHIPS has intrinsic value tied directly to the liquidity pool.
Integration with Aggregators:
- Users can acquire $CHIPS using any liquid ERC20 token on Base through an integrated aggregator, simplifying onboarding for new users.
Minting Process:
- When a player buys $CHIPS, they simultaneously purchase and lock GUAN/VIRTUALS LP tokens, which are used to mint $CHIPS in a trustless manner.
Betting Accessibility:
- Once minted, $CHIPS can be deposited into the GambleFi app for use in any Guan-powered game, creating a smooth and efficient betting process for participants.

Account Abstraction Infrastructure

To enhance user experience and accessibility, the Guanciale AI DAO will integrate Account Abstraction technology to enable seamless, non-custodial betting.

Partnered Infrastructure:
- The protocol will partner with a leading Account Abstraction provider (to be announced by the Core Contributors).
User-Friendly Onboarding:
- Users can create non-custodial betting accounts via passkeys and OAuth-powered social login flows, eliminating the need for manual wallet setup.
Permissionless Operations:
- This infrastructure allows users to interact with the GambleFi protocol without managing wallets or manually signing each transaction, drastically reducing entry barriers.
Fully OnChain Betting:
- With Account Abstraction, all bets are executed fully onchain, maintaining the transparency and trustlessness of the protocol while offering an intuitive user interface.

4.4 Technical Specifications

Smart Contracts

veGUAN NFT: ERC721 contract with a dynamic art that represents a veGUAN locked position.
veGUAN Locker Contract: Handles GUAN/VIRTUALS UNI-V2 LP token locking and veGUAN NFT issuance.
GambleFi Gauge Contract: Tracks liquidity allocations to games and fee flows.
Treasury Management Contract: Oversees buffer operations and buyback/burn mechanisms.

Architecture

Coming soon.

Tokenomics

$GUAN: AI DAO Governance token.
GUAN/VIRTUALS UNI-V2 LP: The GUAN/VIRTUALS 50/50 Uniswap V2 liquidity pool ERC20 token.
$CHIPS: The ERC20 tokens that game bettors acquire and deposit to play Guan-powered games, pegged 1:1 to GUAN/VIRTUALS UNI-V2 LP.
veGUAN: veNFT for governance and voting rights.

4.5 Economic Model

Inflation: None for $GUAN, capped supply ensures scarcity.
Deflationary Mechanisms: Fees allocated to buyback and burn $GUAN.
Revenue Streams: Betting fees, game losses, and Treasury allocations.
Incentives: Revenue distributions for veGUAN lockers, $GUAN buybacks and burning.

4.6 Security and Risk Management

Audits: All smart contracts undergo third-party security audits.
Buffer Safeguards: Ensures payouts without compromising liquidity.
Governance Control: veGUAN voting mitigates reckless fund allocation to games.

4.7 Implementation Roadmap

Phase 1: Protocol Design & Audits
- Approve the design through a Guanciale Improvement Proposal.
- Develop smart contracts.
- Engage with security companies for at least 2 audits.
Phase 2: Initial Deployment
- Deploy veGUAN NFT Contract on Base.
- Deploy veGUAN Locker Contract on Base.
- Deploy GambleFi Gauges Contract on Base.
Phase 3: Game Integrations
- Deploy Guanciale AI-guided Onchain Black Jack game on Base. (using the IGuancialePoweredGame standard)
- Deploy the Onchain Black Jack Gauge on Base with $CHIPS deposits enabled.
- After a minimum period to be defined (e.g 1 week), activate all features of the Onchain Black Jack game.
Phase 4: Optimization & Long Term Support
- Build a v2 that won't be shared in this proposal yet.
- Deploy new onchain games on Base.
- Deploy the GambleFi protocol on Solana.

4.8 Appendix

Key Metrics:

Fee Split: 3% with flexible configuration.
Buffer Coverage: Reviewed quarterly by the Guanciale AI DAO Council.
Voting Weight Formula: Weighted linear based on lock duration, represented by the following function:

5. Tokenomics

5.1 Overview

$GUAN: Governance token with a capped supply and deflationary mechanisms.
$CHIPS: Utility token for GambleFi transactions, pegged to GUAN/VIRTUALS LP tokens.
veGUAN NFTs: Non-fungible tokens representing staked positions, granting voting rights.

6. Security and Risk Management

6.1 Overview

Smart Contract Security: All contracts undergo thorough third-party audits to mitigate risks.
Buffer Safeguards: Treasury-managed buffers protect against liquidity shocks during extreme market conditions.
Emergency Protocols: Fast-track voting enables the DAO to respond quickly to hacks or systemic risks.

7. Technical Architecture

7.1 Overview

Backend: AI microservices provide portfolio insights and trading strategies. Onchain analytics aggregate blockchain data for accurate, real-time metrics.
Frontend: Integrated wallet connectors for Base and Solana ecosystems. Intuitive user interface powered by Next.js and Wagmi adapters.

8. Conclusion

Last updated 4 months ago