Abstract
Idle stablecoins are a solved problem in theory and an unsolved one in practice. The yield exists, but capturing it safely demands constant attention, disciplined risk scoring, and the trust to let something act on your behalf. Aumo is an autonomous agent that does the work. It scores venues, allocates capital, and rebalances with the market, while the authority to move funds is bounded by a contract rather than by good intentions. The agent optimises. The chain constrains. The same design now extends beyond the safe stablecoin pool into opt-in, at-risk pools for tokenized US stocks, a diversified basket, and tokenized gold, each in its own isolated pool under the identical guardrails (Section 9).
1. Motivation
Most yield products force a choice between two bad options: hand custody to an opaque manager, or manage everything yourself and accept that you will miss regime changes, peg stress, and liquidity crunches while you sleep. Autonomous agents are an obvious third path, but an agent with unchecked authority is just a manager with worse judgement. The unlock is not a smarter agent. It is a smaller blast radius. If the agent can only ever act within limits enforced on-chain, you can let it be autonomous without letting it be dangerous.
2. Design overview
Depositors put USDT0 into a shared ERC-4626 pool and receive shares. An off-chain agent runs a five-stage loop (sense, score, reason, act, prove) on a schedule. It reads live venue data, computes risk-adjusted yields, optionally passes the plan through a tighten-only reasoning layer, executes the resulting move within contract caps, and writes a receipt. Yield accrues to the pool and therefore to every shareholder pro-rata.
3. Contracts
The pool is an ERC-4626 vault. Shares are minted on deposit and redeemed on withdrawal for a pro-rata claim on total assets, which sum the pool's idle balance and its live balances across venues. A decimals offset mitigates the classic first-depositor inflation attack. A separate single-owner vault variant exists for treasuries that do not want a shared pool. Both share the same guardrail design.
Ownership uses a two-step transfer, and renouncement is explicitly disabled so the vault can never become ownerless. The pool is pausable. Venue approvals are reset to zero after each allocation so no standing allowance lingers.
Capital reaches yield through venue adapters, one per market, each fork-tested against its live counterpart on X Layer mainnet: Aave v3 lending; USDG supplied to Aave for RWA-backed yield; Pendle PT-USDG fixed yield to maturity; and a full-range USDG/USDT0 position on Uniswap v3 that earns trading fees on two dollar-pegged legs. Beyond the per-move, per-venue, and total-deployed caps, two rolling per-epoch budgets bound the agent further: a loss budget caps the value it can destroy through swap spreads in a window, and a deploy budget rate-limits how fast it can stage new capital. Both meter the entry swap and the exit round trip alike. Depositor withdrawals are never subject to either, so redemptions always clear.
4. Risk model
The engine transforms each venue's headline APY into a risk-adjusted figure through a transparent, weighted blend of haircuts: protocol maturity, liquidity-at-risk (depth measured against the size Aumo would actually hold), peg deviation, utilization, and a correlation-aware concentration penalty that treats venues moving together as closer to a single exposure. Each venue is assigned a band (low, moderate, elevated, or high) and allocation ranks on risk-adjusted APY. The weighting is legible by design. A depositor can read why one venue beat another.
5. Reasoning layer
On top of the deterministic engine sits an optional language-model pass governed by a strict safety kernel: it may only make the plan more conservative. It can veto a move, shrink it, or shift appetite downward in response to the regime it reads. It has no capability to raise a cap, add a venue, or increase exposure beyond what the engine already sanctioned. The model advises within a box it cannot open.
Because the safety is a property of the kernel and not of any one model, the reasoning pass is provider-pluggable. The same tighten-only layer, the specialist panel it convenes, and the Ask Aumo endpoint run on Groq (OpenAI-compatible) or Anthropic, selected by configuration. Swapping the provider changes only how conservatively a plan may be tightened, never whether it can be loosened, because the contract re-checks every guardrail after the model answers regardless of which model that was.
6. Execution and proofs
Every decision produces a receipt: the regime and appetite, the venue scores, the chosen move and its plain-language rationale, and a keccak fingerprint of the exact policy that governed it, anchored by the on-chain transaction hash. Because behaviour is bound to a policy fingerprint, any change in what the agent does is always traceable to a change in policy. The audit trail is the product, not an afterthought.
7. Cross-chain deposits
USDT0 is a native LayerZero OFT. Aumo quotes the real route and messaging fee directly from the OFT, letting depositors fund from Ethereum, Arbitrum, Optimism, or Polygon and arrive on X Layer ready to deposit, with no wrapped-asset detour.
8. Security and trust assumptions
The core assumption Aumo removes is trust in the agent's honesty. It cannot exceed on-chain caps and cannot withdraw to an external address, so a compromised or misbehaving agent cannot steal funds. The assumptions that remain are the venues themselves (a venue can lose money on its own terms), the correctness of the contracts, and the security of the owner key that sets policy and allowlists. The real-world-asset pools (Section 9) add two disclosed assumptions of the same class: a self-hosted price oracle whose feeder key is the source of truth until it is migrated to a network feed, and the freeze and pause powers the token issuers (Paxos and the xStock issuers) retain over the underlying. Aumo is experimental and has not completed a formal third-party audit.
9. Real-world-asset pools
Alongside the safe stablecoin pool, Aumo runs opt-in pools for tokenized US stocks, a diversified basket, and tokenized gold. Each is a separate isolated ERC-4626 pool that takes USDT0. These pools deliberately hold directional price exposure the depositor chose, so they are not capital preservation and their share value moves with the underlying. They reuse the safe pool's whole trust model unchanged (the owner sets policy, an allowlisted agent moves funds only within hard caps, and the owner never has custody) and add three equity-specific behaviours: US market hours enforced by the contract on both entry and exit, so no one transacts at a stale price; an oracle-derived minimum out on every swap, so a manipulated pool reverts rather than filling far from fair value; and redemption at realizable value.
Four isolated pools track NVIDIA, Apple, Microsoft, and Meta. Each routes USDT0 to the wrapped xStock through Uniswap v3, priced by an on-chain equity oracle Aumo operates and discloses. On a single-stock pool the agent buys and holds the exposure the depositor chose. It does not time the market. A fifth pool holds all four equal-weight through four adapters, and the agent's only job is to keep the weights equal by rebalancing on drift within a band. The basket exists because diversification is the one thing that reliably reduced drawdown in a five-year backtest, while a trend-timing overlay we tested on single names whipsawed and did not reliably help, so we removed it. The figures and method are in the research note.
A separate opt-in pool holds PAXGy, Paxos' yield-bearing tokenized gold. It tracks the gold price, and its gold entitlement grows over time, so a holder earns a yield denominated in gold on top of the price exposure. Aumo prices it from PAXGy's on-chain gold rate combined with a gold price feed it runs, and routes USDT0 through USDG to PAXGy on Uniswap v3. Gold moves in dollar terms, so this too is not capital preservation.
The equity and gold oracle is self-hosted for now: a feeder Aumo runs posts prices through a single trusted key, disclosed to depositors, with the consumer contracts reading through an oracle-agnostic interface so a later move to a verified network feed is a single owner call and no depositor action. Before these pools opened to deposits, a multi-agent internal security pass proved two Medium-severity issues with fork proof-of-concepts (exit-slippage socialization and a NAV-latency skim) and fixed both with a tighter oracle staleness window and an anti-dilution levy retained by the pool (25 basis points on entry, 50 on exit), so a joiner or leaver bears the value their own action moves rather than the holders who stay. The levy is capped in the contract so it can never become a fee. The hardened pools were redeployed to X Layer mainnet before accepting deposits.
10. Roadmap
- Deepen the reasoning layer with temporal awareness and scenario simulation.
- Migrate the self-hosted equity and gold oracle to a verified network feed through the oracle-agnostic interface, with no depositor action required.
- Broaden the real-world-asset surface. The tokenized-stock pools, the diversified basket, and the tokenized-gold pool are live on X Layer mainnet; further names and asset classes follow as their on-chain liquidity supports it.
- Formal third-party audit of the deployed contracts. Mainnet went live on X Layer on August 13, 2026, starting from a deliberately small pool under conservative caps that widen as the audit and on-chain track record mature; the equity pools were opened only after an internal security pass and a hardened redeploy.
- Depositor-configurable risk appetite within the contract's hard bounds.
11. Disclaimer
This document describes software running on X Layer mainnet. It is not an offer, solicitation, or financial advice. Yields are variable and not guaranteed, smart contracts carry risk, and you should never commit funds you cannot afford to lose. See the Terms and Privacy Policy.