MockingBird

Private Reputation. Public Credit. ZK Agents for RWAs on Arc

MockingBird

Created At

HackMoney 2026

Project Description

Mockingbird is the first "Reputation-Aware" Agentic Commerce platform on the Arc Network, designed to bridge the gap between anonymous DeFi and trusted Real-World Asset (RWA) execution.

In the current landscape, autonomous agents are treated as "untrusted actors"—they cannot access undercollateralized loans or favorable credit terms because they lack identity. Mockingbird solves this by combining Zero-Knowledge (ZK) Identity with a sophisticated Signal Processing Engine (originally built for Aave) to create agents that are both private and creditworthy.

The Architecture of Trust:

  1. The ZK Identity Layer (The Passport) We utilize Zero-Knowledge proofs to establish a Sybil-resistant, unique identity for every agent owner on the Arc blockchain. Users verify their uniqueness without revealing personal data. This creates an on-chain "Reputation Score" stored in a Merkle Tree. This score acts as a gatekeeper: unlike standard bots, a Mockingbird Agent can access leverage or undercollateralized USDC credit only if its owner proves a high reputation via ZK proof.

  2. The Signal Engine (The Brain) Building on the proven Mockingbird monitoring architecture, our agents don't just "guess"—they react to granular market data. The system continuously polls Aave-style market protocols and RWA feeds to generate high-fidelity signals, including:

    Health Factor Decay: Predictive alerts before liquidation risks occur.

    Yield Spreads: Real-time calculation of RWA Yield vs. USDC Borrow Cost.

    Trend Confirmation: Using composite signals (Moving Averages + Volatility) to prevent false positives.

  3. Autonomous Execution (The Hands) When the Signal Engine detects a profitable spread (e.g., "USDC Borrow Rate < T-Bill Yield") and confirms the user's ZK Reputation is sufficient, the Agent Executor takes over. Powered by Circle Programmable Wallets, the agent autonomously executes the trade on Arc—borrowing USDC, acquiring RWA tokens, or rebalancing collateral—without human intervention.

Why It Matters: We are moving beyond simple "trading bots." Mockingbird demonstrates how Identity + Data = Solvency. By porting institutional-grade risk monitoring (Aave Signals) and combining it with privacy-preserving identity (ZK), we unlock the holy grail of RWA commerce: Trusted execution by anonymous agents.

How it's Made

We architected a cross-chain autonomous treasury system that bridges the DeFi liquidity of Base Sepolia with the specialized commerce capabilities of the Arc network. The architecture is composed of three distinct technical pillars: Zero-Knowledge Identity, Event-Driven Signal Processing, and Agentic Execution.

  1. ZK-Based Trust & Reputation Layer To solve the problem of "trustless credit" for autonomous agents, we implemented a Zero-Knowledge Identity system. We utilize client-side proof generation where users prove ownership of a unique identity commitment without revealing their underlying personal data. These proofs are verified on-chain and stored in a Merkle Tree structure. Crucially, we link this ZK identity to the agent’s execution wallet. The agent's permissions are not static; they are derived dynamically from the user's "Reputation Score" stored in the contract. This allows our system to grant undercollateralized borrowing power to high-reputation agents while restricting fresh wallets, mathematically enforcing trust in an anonymous environment.

  2. Custom Aave Signal Engine The "brain" of the operation is a custom-built, event-driven signal engine. Instead of relying on basic price polling, we built a normalization layer that ingests raw Aave V3 protocol data on Base Sepolia. The engine computes second-order metrics like Health Factor volatility and Collateral usage rates in real-time. It transforms raw blockchain state into semantic signals (e.g., LIQUIDATION_RISK_DETECTED or CAPITAL_INEFFICIENT), which serve as the triggers for our AI agent.

  3. Cross-Chain ReAct Agent & CCTP For execution, we orchestrated a ReAct (Reasoning + Acting) agent using LangChain and Viem. The agent operates with a "Dual-Chain" context:

    On Base Sepolia: It manages a credit facility, monitoring Aave V3 health factors.

    On Arc: It manages commerce and RWA interaction.

    The Bridge: We integrated Circle’s Cross-Chain Transfer Protocol (CCTP).

When the signal engine detects a "Safe Leverage" opportunity (High Health Factor + High Reputation), the agent autonomously borrows USDC on Base, burns it via the TokenMessenger, waits for the Circle attestation, and mints it on Arc to execute trades. Conversely, if the system detects a risk signal (Health Factor dropping < 1.2), the agent halts commerce on Arc, bridges liquidity back to Base, and repays the debt to prevent liquidation.

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