DeFi lending protocol with an autonomous AI agent layer, built on Arc Testnet
AgentLoan is a DeFi lending protocol where AI agents do the work:
- Supply crypto as collateral → earn yield
- Borrow stablecoins against your collateral
- Autonomous agents monitor positions, liquidate undercollateralized loans, and sell early warnings to other bots
Built on Arc Testnet — USDC as gas, ~0.48s finality, sub-cent transactions. All tokens are testnet assets with no real-world value.
1. Add Arc Testnet to your wallet
Network Name: Arc Testnet
RPC URL: https://rpc.testnet.arc.network
Chain ID: 5042002
Symbol: USDC
2. Get testnet tokens
Get native USDC for gas from faucet.circle.com, then mint xUSDC/xEURC/xclrBTC at agentloan.vercel.app/faucet.
3. Supply → Borrow → Watch your Health Factor
Keep Health Factor above 1.0. If it drops below, a liquidation bot will repay 50% of your debt and take collateral + 5% bonus.
Anyone can run an agent and earn. Three options, pick one:
The bot watches all borrower positions every ~0.5s. When Health Factor drops below 1.0, it repays their debt and receives collateral + 5% bonus.
Prerequisites: Node.js 22+, Linux/macOS VPS (or WSL), some xUSDC for liquidation capital + a little USDC for gas.
Recommended VPS: 2GB RAM minimum. npm install requires ~1.5GB — on a 1GB droplet, create a swap file first:
dd if=/dev/zero of=/swapfile2 bs=1M count=2048 && mkswap /swapfile2 && swapon /swapfile2
Note on directory name: The repo clones as
agentloan/but if you follow the VPS deploy guide, the bot runs from/root/arcbank/— this is intentional (the VPS directory kept the original name during a brand rename). Both work fine.
git clone https://github.com/PigAssasin/agentloan.git
cd agentloan
bash setup.sh # install deps + create .env.local
npm run wallet:new # generate dedicated bot wallet
# Copy the private key → paste into .env.local as BOT_PRIVATE_KEY
# Fund the wallet with xUSDC (liquidation capital) + USDC (gas)
npm run agent:dry # dry run — logs what it would do, no real txs
npm run agent:run # go liveHow the math works: Bot repays $25,000 of debt → receives $26,250 of collateral. The 5% bonus comes from the borrower's collateral, not the protocol.
Run 24/7 with PM2 (recommended):
npm install -g pm2
pm2 start ecosystem.config.js --only arcbank-bot
pm2 save && pm2 startupA Signal Agent scans positions every 5 seconds for Health Factor < 1.1 and sells these early warnings to liquidation bots via x402 payment protocol. Bots pay 1 xUSDC for 1,000 signals (24h session) — they get a 15-30s head start on liquidations.
Prerequisites: Linux/macOS VPS, Node.js 20+.
git clone https://github.com/PigAssasin/agentloan.git
cd agentloan/signal-agent
bash setup.sh
# Follow the printed steps:
# 1. Fund your wallet with ~1 USDC for gas
# 2. Start: pm2 start ecosystem.signal.config.jsRevenue model: 1 xUSDC per session. Gas ~0.006 USDC per verification. Net ~0.994 xUSDC per bot subscription.
See signal-agent/README.md for the full API reference.
Go to agentloan.vercel.app/app → AGENTS tab → approve tokens → authorize → activate.
The agent runs 24/7 and handles your position automatically:
- Auto-repay — if your Health Factor drops below your target, the agent repays debt using your wallet balance or your supplied collateral. Supports xUSDC, xEURC, and xclrBTC debt.
- Auto-supply — idle tokens in your wallet (xUSDC, xEURC, xclrBTC) get deployed to the pool to earn yield automatically.
- Auto-withdraw — if the LLM decides you should pull funds back from the pool, the agent executes it.
- HF warning — proactive Telegram alert when Health Factor drifts within 0.25 of your target, before the agent needs to act.
- Circuit breaker — if 3+ repays execute within 60 minutes and HF remains unsafe (sharp price crash scenario), the agent pauses itself and notifies you to check manually.
- Rebalance alerts — if one asset is earning significantly more APY than another you're supplying, the agent notifies you on Telegram.
- Telegram notifications — every action is reported to your Telegram.
The agent is LLM-first: Gemini drives the decision each cycle (5-minute reasoning cooldown per user). A rule-based safety layer then validates every LLM decision, handles emergencies instantly without waiting on the model (HF < 1.05), and keeps watch between LLM calls (~90s). A position below your target is always repaid — that protection never depends on the model.
This feature is experimental. Approve only amounts you're comfortable with the agent managing.
Personal Agent (every ~90s, ERC-8004 #67459)
└─ LLM-first: Gemini drives the decision each cycle (5-min cooldown per user)
└─ Safety layer: rules validate LLM output, force repay when HF < target,
handle emergencies (HF < 1.05) instantly without the LLM
└─ Portfolio context via Multicall3 (18 reads, 1 RPC) + 10-row memory
└─ repayFromWallet / repayTokenFromWallet — repays any debt token
└─ emergencyProtect — atomic withdraw xUSDC supply + repay
└─ deployToYield / deployTokenToYield — idle wallet tokens → pool
└─ withdrawTokenFromYield — pulls supply back to wallet
└─ HF warning alert — Telegram push when HF within 0.25 of target
└─ Circuit breaker — agent pauses if 3+ repays in 60 min with HF still unsafe
└─ getUserAccountDataAccrued — accurate HF with accrued interest (no state write)
└─ ERC-8004 reputation recorded by a separate validator wallet (no self-rating)
└─ AgentExecutor v4 at 0x73802EfaB408Ca15208B59FC28aDB84007488606
└─ Telegram notification after every action (rate-limited, DB-persisted cooldown)
Coordinator Agent (every 30s, ERC-8004 #34625)
└─ scoring function ranks ALL liquidatable positions
└─ Gemini AI only on real events (price change >1.5% or new critical HF)
└─ 5-minute minimum between AI calls
Signal Agent (every 5s, ERC-8004 #31772)
└─ scans all positions for HF < 1.1
└─ sells early warnings via x402: 1 xUSDC = 1,000 signals (24h)
Liquidation Bot (every block, ~0.48s, ERC-8004 #30907)
└─ reads Coordinator priority
└─ HF < 1.0 → liquidate → earn 5% collateral bonus
| Contract | Address |
|---|---|
| LendingPool v4 | 0xd260CE0395429c71E589FD694C022cC04c923De7 |
| PriceOraclePyth v3 | 0xBA2ab92aBbbeD432cd5e57DE8fE9ED1dFed16CdF |
| AgentExecutor v4 | 0x73802EfaB408Ca15208B59FC28aDB84007488606 |
| InterestRateStrategy | 0x22B2A153F7694e49096ef91D627a80c5b6602Ffd |
| xUSDC (mock) | 0xFa090bd1A524D861542888B6c5e7965dde1F4f35 |
| xEURC (mock) | 0x11aC6A7f4c3235e4edda971838640bE9e55aC222 |
| xclrBTC (mock) | 0x938ae31cc6418acc6730cF1AFFE53E91c143B078 |
| Agent | ERC-8004 ID | Address |
|---|---|---|
| Personal Agent | #67459 | 0x93A7daa58B2dDf25387cE072a95Bea96dc5f93FA |
| Coordinator Agent | #34625 | 0x4dcE343E9c35112AAF9Ddce566689C3f36C73482 |
| Liquidation Bot | #30907 | 0x9E47c5EE0b1174a5F4450553CE45Fdcf6bCd036a |
| Signal Agent | #31772 | 0x555cc39B822392E45A0B69776d6AeEadfcC5af3D |
git clone https://github.com/PigAssasin/agentloan.git
cd agentloan
bash setup.sh # installs deps + creates .env.local
npm run dev # http://localhost:3000# .env.local — never commit this file
NEXT_PUBLIC_ARC_RPC=https://rpc.testnet.arc.network
# Liquidation bot (required to run the bot)
BOT_PRIVATE_KEY=0x<dedicated-bot-wallet>
# Signal agent URL (optional — bot works without it)
SIGNAL_AGENT_URL=http://<your-vps-ip>:3001
# Circle SCA wallet (optional — enables gasless liquidations)
CIRCLE_API_KEY=
CIRCLE_ENTITY_SECRET=
CIRCLE_WALLET_ID=
CIRCLE_BOT_ADDRESS=
# Coordinator Agent LLM (optional — enables AI reasoning)
GEMINI_API_KEY= # free at aistudio.google.com
DEEPSEEK_API_KEY= # fallback
# Personal Agent reputation (optional — records ERC-8004 feedback)
# Must be a DIFFERENT wallet than the agent owner: ERC-8004 forbids self-rating.
# Fund it with a little USDC for gas. If unset, reputation recording is skipped.
VALIDATOR_PRIVATE_KEY=0x<validator>
# Only needed for contract redeployment
DEPLOYER_PRIVATE_KEY=0x<deployer>TS_NODE_PROJECT=tsconfig.hardhat.json npx hardhat test56 tests covering: deposit/borrow/repay/liquidation, interest rate model, BTC price crash scenarios (-20%/-40%/-60%), agent flows.
| Chain | Arc Testnet (EVM, USDC gas, 0.48s blocks) |
| Contracts | Solidity 0.8.20, OpenZeppelin 5, Hardhat |
| Oracle | Pyth Network (updated every 15s by bot) |
| Frontend | Next.js 16, wagmi v2, viem, RainbowKit |
| Bot wallet | Circle Developer-Controlled Wallets (SCA) |
| Agent identity | Arc ERC-8004 |
| Job coordination | Arc ERC-8183 |
| Signal payments | x402-inspired (HTTP 402 + xUSDC) |
| AI reasoning | Gemini 2.0 Flash (primary) + DeepSeek V3 (fallback) |
| Infra | Vercel + PM2 on VPS |
Self-audited. Key fixes applied:
_updateAllIndexes()called before health factor checks in all state-changing functionsuint128overflow guard on interest index accrual- Liquidation collateral token can never equal the debt token
.call()instead of.transfer()for oracle fee withdrawal- Graceful fallback when neither Circle wallet nor private key is configured
- x402 replay attack prevention via in-memory
usedTxHashesset getUserAccountDataAccrued— HF reads include accrued interest since last tx (no stale index)- Circuit breaker prevents cascade repay burn during sharp price drops
Known limitations: Not professionally audited. Testnet only — no real funds.
MIT