Cross chain DeFi trading platform w AI based arbitrage detection, risk assessment & automated swaps
Midas AI DeFi Platform is a comprehensive cross-chain decentralized finance application built using Remix.js (React-based framework) with TypeScript for type safety and Tailwind CSS for styling. The platform integrates Plaid API to securely retrieve users' bank account details, credit card information, and financial data, enabling seamless connection between traditional banking and DeFi operations. The frontend is powered by React with file-based routing through Remix, while the backend utilizes Hardhat framework for smart contract development and deployment across multiple blockchains including Ethereum, Polygon, and Etherlink Fusion.
The core innovation lies in its AI-powered arbitrage detection system that continuously monitors cross-chain price differences and automatically identifies profitable trading opportunities. The platform features a sophisticated risk assessment engine that evaluates multiple factors including liquidity risk, slippage analysis, contract security, volatility assessment, MEV protection, and gas optimization before executing any transaction. Users receive real-time AI recommendations with confidence scores, detailed risk explanations through tooltips, and one-click execution capabilities that pre-fill trading forms with optimized parameters. The system supports multiple trading modes including basic swaps, advanced limit orders, cross-chain arbitrage via Etherlink Fusion, Stellar network integration, and NEAR Protocol solver functionality.
Cross-chain functionality is achieved through custom smart contracts written in Solidity, including CrossChainSwap.sol for multi-chain operations, EtherlinkBridge.sol for seamless bridging, and specialized routers for different protocols. The platform integrates with 1inch aggregation for route optimization, Coinbase SDK for wallet connectivity, and maintains real-time price feeds through multiple oracles. Security is prioritized through comprehensive risk assessment, slippage protection, MEV safeguards, and audited smart contracts with emergency pause functionality. The user interface provides a unified experience across all supported chains, with real-time portfolio tracking, transaction monitoring, and automated rebalancing suggestions powered by the integrated Plaid banking data and AI analysis.
The project was built using a modern full-stack architecture with Remix.js as the primary framework, chosen for its seamless server-side rendering capabilities and file-based routing system that perfectly suited our DeFi application's need for fast, SEO-friendly pages and dynamic route handling. The frontend leverages React 18 with TypeScript for robust type safety, while Tailwind CSS provides a utility-first styling approach that enabled rapid UI development and consistent design patterns across the complex trading interfaces. For state management, we implemented a combination of React hooks (useState, useEffect, useSearchParams) and custom hooks like useRiskAssessment to handle the intricate state requirements of multi-chain trading operations. The backend infrastructure is powered by Hardhat framework for smart contract development, enabling us to deploy and test Solidity contracts across multiple testnets and mainnets simultaneously. We integrated Plaid API for secure banking data retrieval, which proved crucial for bridging traditional finance with DeFi by allowing users to connect their bank accounts and credit cards directly to the platform. The AI components were built using custom TypeScript classes (DeFiRiskAssessor, AICryptoAgent) that simulate real-time market analysis and risk assessment, while the cross-chain functionality relies on custom smart contracts including CrossChainSwap.sol and EtherlinkBridge.sol that handle complex multi-chain operations. One particularly hacky but effective solution involved creating a simulated blockchain environment using setTimeout promises to mimic real transaction delays and gas estimation, allowing us to demonstrate the full user experience without requiring actual blockchain deployments during development. The integration of partner technologies significantly enhanced the project's capabilities: 1inch aggregation API provides optimal swap routes and price discovery, Coinbase SDK enables seamless wallet connectivity, and multiple price oracles ensure accurate real-time data feeds. The most notable technical challenge was implementing the risk assessment system that required parsing complex on-chain data and off-chain market information to generate comprehensive risk scores. We solved this by creating a modular risk assessment engine that evaluates eight different risk factors independently and then aggregates them into a unified risk score, complete with detailed explanations that users can access through interactive tooltips. The cross-chain bridging functionality was particularly complex, requiring careful coordination between different blockchain networks and gas optimization strategies to ensure cost-effective transactions across multiple chains.