Kred

OfflinePay:Kred is a offline-first Web3 transaction and credit scoring system that enables users to make blockchain transactions through SMS — without needing the internet.

The system bridges mobile communication (SMS) and on-chain execution (Hedera + Lit Protocol) through a multi-agent ASI (Artificial Super Intelligence) architecture that coordinates signing, transaction execution, and decentralized credit scoring via SoulBound Tokens (SBTs).

Our mission:

To bring Web3 financial access and credit systems to everyone — even those without internet.

⚙️ How It Works — Full Flow 🧩 Step 1: User Initiates (Offline)

A user, without internet, sends an SMS like:

PAY 50 PYUSD TO +15551234567

📞 Step 2: SMS Gateway (SMSMobileAPI)

The message is received by a gateway phone connected to the internet.

The SMSMobileAPI service detects the incoming message and automatically sends a webhook to the backend.

🌐 Step 3: Backend Receives Webhook (Flask/Node.js)

The backend parses the message using basic NLP to extract transaction intent:

Action: “PAY”

Amount: “50”

Token: “PYUSD”

Receiver: “+15551234567”

Then it triggers the ASI Multi-Agent System.

🤖 ASI Multi-Agent System (Intelligent Coordinator)

The ASI architecture has 3 tiers, with 1 core agent and 11 sub-agents communicating in real time through uAgents and MeTTa Knowledge Graphs.

🧠 Tier 1 — Core Coordinator butler_agent.py

Acts as the brain of the system.

Receives SMS intent and orchestrates all other agents.

Decides transaction flow, invokes oracles, executes verification, and sends results.

🧩 Tier 2 — Oracle Agents

1. strategy_oracle_agent

Fetches yield rates and liquidity info from Hedera DeFi protocols.

Decides the most optimal route for PYUSD transfer.

1. risk_oracle_agent.

Checks protocol safety using MeTTa knowledge graphs (audit scores, risk ratings).

Warns Butler Agent if transaction seems suspicious.

1. gas_oracle_agent

Monitors HBAR gas prices in real time.

Suggests cheapest time or method for execution.

⚙️ Tier 3 — Functional Agents goal_planner_agent

Helps users set financial goals or recurring payments via SMS commands.

eli5_agent

Educates users in simple language about what their transaction means (“You just sent stablecoins to X, this won’t affect your credit limit”).

risk_assessment_agent

Evaluates transaction risk per user history.

memory_agent

Stores user contact and transaction history (off-chain).

collector_agent

Queues offline transactions if gateway or internet fails.

executor_agent

Handles final transaction signing and on-chain push using Lit Protocol.

payroll_agent

Manages recurring salary disbursements or auto-payments.

gas_tank_agent

Ensures user wallets always have sufficient HBAR for fees (auto-refuels small amounts).

🔐 Step 4: PKP Signing with Lit Protocol

The executor_agent passes transaction data to Lit Protocol.

Using Programmable Key Pairs (PKP), Lit signs the transaction securely without exposing private keys.

Signed transaction is submitted to Hedera Network.

💰 Step 5: On-Chain Execution

Transaction executes on Hedera in PYUSD stablecoin.

Simultaneously, an SBT (SoulBound Token) is minted as a proof of successful transaction.

🪙 Each SBT acts as a credit history badge. After several SBTs, users qualify for on-chain micro-loans or DeFi credit access.

📤 Step 6: Confirmation SMS

Once confirmed, the backend sends an SMS reply back to the user:

✅ Transaction Successful! 50 PYUSD sent to +15551234567 TxID: 0.0.123456 Credit Badge Earned 🪙

🏗️ Architecture Diagram 📱 User (Offline SMS) ↓ 📞 SMS Gateway (SMSMobileAPI) ↓ 🌐 Backend (Flask / Node.js) ↓ 🤖 ASI:One (Butler + Oracle + Functional Agents) ↓ 🔐 Lit Protocol (PKP Signing) ↓ 💰 Hedera (PYUSD Transaction + SBT Mint) ↓ 📤 SMS Reply → User

🧩 Technologies Used Layer Technology Purpose Frontend SMS / No UI Offline-first interface Middleware Flask / Node.js Webhook & Agent coordination AI System ASI:One + uAgents Multi-agent coordination Knowledge Graph MeTTa Reasoning and goal-based task planning Blockchain Hedera On-chain transaction & SBT mint Stablecoin PYUSD Medium of payment Identity & Signing Lit Protocol (PKP) Secure signing without private key exposure SMS Gateway SMSMobileAPI Communication bridge between offline users and online backend 💡 Innovation Highlights

✅ True Offline Web3 — No app, no internet, just SMS. ✅ AI Multi-Agent System — ASI coordinates real-time risk, strategy, and signing. ✅ Decentralized Credit System — SBTs act as immutable credit history. ✅ Secure Signing — PKP through Lit ensures keyless trust. ✅ Inclusive Finance — Users in rural areas or low-connectivity zones can use Web3.

📈 Real-World Impact

Financial Inclusion: Brings blockchain to people without smartphones or internet.

Decentralized Credit: Builds a transparent on-chain credit layer.

Automation via AI: Intelligent reasoning agents handle finance autonomously.

DeFi Education: Teaches users via SMS in simple ELI5 explanations.

🧠 Future Roadmap

🔗 Integrate with Hedera DeFi lending platforms for instant micro-loans.

🌍 Add multilingual SMS support.

🧾 Add AI-based spending insights and analytics.

🤝 Expand to missed call + voice interface for accessibility.

🪙 Create reputation-weighted lending DAO using SBT credit badges.

🧑‍💻 Team & Contributions

Developed by: Naveen RS Core Work:

ASI Agent System Design

SMS → Blockchain Integration

Lit Protocol PKP Integration

Hedera + PYUSD On-Chain Logic

SBT Credit Badge System

Webhook + Backend Automation

🏁 Summary

OfflinePay:Kred merges the power of AI multi-agent reasoning, Lit Protocol security, and Hedera scalability — to create the world’s first offline Web3 transaction and credit scoring system using just SMS.

This is financial inclusion redefined — bringing DeFi to everyone, everywhere. 🌍

OfflinePay:Kred was built with one goal — making Web3 payments possible through SMS, even without the internet — by combining ASI multi-agent intelligence, Hedera blockchain, Lit Protocol PKPs, and a two-way SMS gateway.

The entire project is divided into three core layers: 1️⃣ Communication Layer (SMS Gateway) 2️⃣ Backend & ASI Agent Layer (Flask + ASI:One + MeTTa) 3️⃣ Blockchain Layer (Lit + Hedera + PYUSD + SBT Minting)

🧠 1. Communication Layer — “The Offline Trigger”

We used SMSMobileAPI as the bridge between a user’s offline SMS and the online backend.

The user sends an SMS like:

PAY 50 PYUSD TO +15551234567

The gateway phone, connected to the internet, receives the SMS and automatically forwards it to our backend via HTTP POST (webhook).

This allowed us to simulate true offline functionality — the user never needs internet, but our system can still trigger smart contract executions through the gateway.

Hacky part: We repurposed a personal Android phone into an SMS-to-HTTP gateway, eliminating the need for any external SMS servers or paid Twilio messages — saving time and cost during the hackathon.

🧩 2. Backend Layer — “The ASI Brain”

The backend runs on Flask (Python) and is the central hub for all ASI agent communication. When the webhook hits the endpoint /incoming_sms, the message is parsed and handed over to the ASI:One multi-agent intelligence layer.

🧠 ASI Architecture:

We designed an Artificial Super Intelligence (ASI) stack with 12 interconnected agents, categorized into 3 tiers:

🏗️ Tier 1: Core Coordinator (1 agent)

butler_agent.py

The “brain” that understands the user’s request.

Uses MeTTa Knowledge Graphs for reasoning and context linking.

Routes requests to relevant oracle or feature agents.

🧩 Tier 2: Oracle Agents (3 agents)

strategy_oracle_agent.py → Fetches real-time DeFi yields and routing data from Hedera.

risk_oracle_agent.py → Checks protocol safety and transaction risks.

gas_oracle_agent.py → Monitors HBAR gas balance and fee optimization.

These communicate using uAgents and exchange reasoning data through MeTTa — so each decision (like “can user afford this?”, “is this route optimal?”) is based on structured, explainable logic.

⚙️ Tier 3: Functional Agents (8 agents)

executor_agent.py — Calls the Lit Protocol PKP signer to securely sign the transaction.

collector_agent.py — Caches any failed or delayed requests offline.

goal_planner_agent.py — Handles recurring payments and financial planning.

risk_assessment_agent.py — Evaluates per-user risk levels.

eli5_agent.py — Generates SMS explanations in human language.

memory_agent.py — Manages context and user data.

payroll_agent.py — Automates recurring salary payments.

gas_tank_agent.py — Auto-refuels user wallet with HBAR when balance is low.

All these agents communicate via a shared ASI Orchestration Bus, using event-based message passing.

Hacky part: We implemented pseudo-parallel reasoning by chaining async agent calls using uAgent + Flask socket threads, creating an illusion of real-time multi-agent thinking even without heavy infra.

🔐 3. Blockchain Layer — “The Trust Zone”

Once the ASI finalizes the transaction, the executor_agent sends the payload to Lit Protocol for signing. We used Programmable Key Pairs (PKPs) to securely sign Hedera transactions without exposing private keys.

Then, the signed transaction is submitted to Hedera Hashgraph, where:

PYUSD stablecoin is transferred from sender to receiver.

A SoulBound Token (SBT) is minted to the sender’s address, representing credit proof.

💰 Decentralized Credit Layer (SBT)

Each successful transaction mints an SBT “Credit Badge”.

After 5 badges, users qualify for on-chain microloans.

These tokens form a decentralized on-chain credit history that’s transparent, immutable, and portable across ecosystems.

Hacky part: Instead of using a dedicated contract for SBTs, we extended an existing Hedera HTS token contract to behave as a non-transferable SBT — saving development time while keeping full compliance.

🧩 4. Partner Tech Integration Partner Tech Role Why It’s Important Lit Protocol Keyless signing Secure, decentralized signing without private keys Hedera On-chain execution Scalable, low-fee, energy-efficient blockchain ASI Alliance / Agentverse Agent registration & reasoning For uAgents + MeTTa graph-based agent coordination SMSMobileAPI Offline-to-online bridge Enables true SMS-triggered Web3 transactions PYUSD (PayPal USD) Stablecoin transfer Keeps real-world parity and stability ⚙️ System Architecture Summary 📱 User (Offline SMS) ↓ 📞 SMS Gateway (SMSMobileAPI) ↓ 🌐 Flask Backend (Webhook) ↓ 🤖 ASI:One (Butler + Oracles + Feature Agents) ↓ 🔐 Lit Protocol (PKP Signing) ↓ 💰 Hedera (PYUSD + SBT) ↓ 📤 Backend → SMS Reply ↓ 📱 User receives confirmation

🧠 Notable Hacky/Creative Elements

✅ Turned a personal Android phone into an SMS-to-HTTP Web3 gateway.

✅ Built AI-powered reasoning agents using MeTTa graphs for multi-agent decision-making.

✅ Used Lit PKPs as “Web3 private key abstractions” for transaction signing.

✅ Converted Hedera HTS tokens into SBTs with minimal modifications.

✅ Designed a fully SMS-based UX that can function without any mobile app or internet connection.

🧩 Stack Summary Layer Technology Purpose Communication SMSMobileAPI SMS → Webhook bridge Backend Flask (Python) Core server & ASI communication Agent Framework ASI Alliance (uAgents + MeTTa) AI reasoning and decision making Signing Lit Protocol (PKP) Decentralized transaction signing Blockchain Hedera SDK Transaction & SBT minting Token PYUSD Stablecoin for payments Data JSON / MeTTa Graph Contextual storage and reasoning Frontend SMS only Offline-first UX 💡 In One Line:

We made Web3 truly offline — powered by AI agents, signed by PKPs, executed on Hedera, and triggered via SMS.