Collateralisation St

Our system, the Collateralisation Station, operates by leveraging autonomous agent services encapsulated as NFTs, using them as collateral to access liquidity without necessitating the sale of these digital assets. The Collateralisation Station, itself an Autonolas-powered autonomous multi-agent service, performs comprehensive assessments. It evaluates the claimable value of OLAS associated with the service NFT, the current OLAS-to-wETH price on Uniswap, and the USD valuation of wETH through the Chainlink oracle. This data is meticulously analyzed to generate a tailored loan offer, which is then relayed to the PWN protocol. Upon receiving this offer, users such as Alice have the opportunity to review and, if accepted, initiate the temporary transfer of their NFT to the PWN smart contract, securing a loan in return. Subsequently, Alice has two choices: - Repay the loan through PWN, which will facilitate settlement via the LoanAggregatorSmartContract, resulting in the return of her NFT. - Default on the repayment of the loan, triggering a proxy call to the multi-agent service-owned SAFE multisig. In this scenario, a liquidation process takes place, where sufficient OLAS is liquidated to cover both the repayment to the lender, such as Bob, along with associated fees. These liquidated funds are then channeled by the Collateralisation Station to the LoanAggregatorSmartContract, which in turn fulfills the repayment to PWN. Consequently, ownership of the NFT held in the PWN smart contract is transferred to the LoanAggregatorSmartContract.

Additionally, an alternative approach involves Charlie's ability to donate any ERC20 token to the LoanAggregatorSmartContract, which will then be swapped via AAVE for ETH to obtain an interest-bearing aToken and collect fees. The deposited ERC20 token on AAVE becomes available for borrowing by the LoanAggregatorSmartContract, which can then be lent out via PWN to users like Alice. The distinction arises when Alice defaults on repayment, leading to the Collateralisation Station liquidating sufficient assets, as required, to settle the debt owed to Charlie, alongside associated fees, facilitated through AAVE.

Technology Stack:

• Autonolas Agent Stack: Agents within a Finite State Machine execute behaviors like collateral evaluation, loan approval, and risk assessment. Transitions are governed by Tendermint consensus, ensuring synchronized movements between states. This setup enables precise, autonomous decision-making aligned with predetermined parameters and AI-driven algorithms.
• PWN Protocol Integration: Custom integration or utilization of existing PWN smart contracts and APIs to enable the borrowing and lending functionalities.
• Aave Protocol Integration: Utilization of Aave's smart contracts and APIs to facilitate borrowing and lending of OLAS tokens.
• SAFE Multi-signature Wallets: Implementation to ensure secure ownership transfer and prevent unauthorized withdrawals.
• API3: to wrap the PWN API in order to provide an oracle for on-chain pricing. You can see our oracle receipt where we deploy the oracle on-chain and it's running as a lambda function on AWS.
• 1inch: We use 1inch for swapping any ERC20 token to wETH, which is subsequently used by our CollateralContract for provisioning loans with our autonomous agent service (the Collateralisation Station agent and skill), after these have been appreciated for to NFT for which Alice requests a quote.
• IPFS: The components of the autonomous agent service are minted as NFTs, which contain IPFS hashes that allow anyone to retrieve the source code.
• Smart Contracts: Developed using Solidity for the Ethereum blockchain, forming the backbone of collateralization, loan, and ownership transfer processes.
• Web3.py: Used to interact with the Ethereum blockchain, enabling seamless integration between the the agent service and smart contracts.
• Front-end Development: Utilizing the Svelte.js framework for user interface development, allowing users to interact with our system.

Key Components and Process:

• Collateral Evaluation: PWN smart contracts evaluate collateral assets, generating quotes in OLAS tokens.
• Borrowing from Aave: Integration with Aave's lending protocol to borrow OLAS tokens against the evaluated collateral.
• Ownership Transfer: Smart contracts manage the temporary transfer of ownership from users to the service provider during the loan period.
• Risk Management: Implementation of mediator services to handle defaults and liquidation processes if borrowers fail to repay as agreed.
• Security Measures: Integration of multisig wallets to ensure security and prevent unauthorized actions during collateralisation and loan periods.
• Fee Mechanisms: Development of fee collection mechanisms from loan repayments to sustain and potentially profit from the service.

Collaboration and Partnerships:

Integration of Autonolas, API3, PWN, 1Inch and Aave protocols benefit from direct collaboration and utilization of their developer resources, ensuring seamless integration and adherence to best practices within their ecosystems.