At Isotropic Solutions, we specialize in disruptive technologies—from AI-driven automation to blockchain security. Our latest initiative with Shutter and Olas brings cutting-edge autonomous AI agents to Gnosis Chain, tackling unfair transaction manipulation in decentralized finance (DeFi).
Breaking New Ground: AI-Driven MEV Prevention
In July 2024, Shutter integrated its groundbreaking threshold encryption technology, Shielded Trading, into the Gnosis Chain mempool, delivering front-running prevention and censorship resistance. Building on this foundation, we’re excited to announce a major collaboration: Olas, Isotropic Solutions, and Shutter are joining forces to conduct AI-driven experiments using autonomous agents on Shutter’s encrypted mempool.
This initiative, approved by the Shutter DAO community through a Snapshot vote, is the first-ever use of Olas AI agents to simulate and counteract Maximal Extractable Value (MEV) and transaction ordering strategies. By transitioning from theoretical research to real-world testing, we aim to accelerate insights into MEV mitigation strategies that would otherwise take years to uncover.
Why This Integration Matters
1. First-of-Its-Kind Use of Autonomous Agents for MEV Prevention
This project establishes an open experimental platform to test MEV prevention in near-real blockchain conditions. Leveraging Olas AI agents, we’re directly addressing DeFi’s most pressing challenge—MEV and transaction manipulation—with adaptive, AI-driven strategies.
2. A Scalable Model for Fairness Across EVM Chains
This experiment tests Shutter’s ability to prevent front-running and censorship in competitive blockchain environments like Ethereum. By simulating high-activity scenarios, we aim to demonstrate how Shutter’s encrypted mempool model can scale across multiple chains.
The Experiment: A Live Simulation on Gnosis Chain
We’re running a controlled experiment on Gnosis Chain, deploying AI agents in two environments:
- Shielded Mempool (Shutter Encryption Active)
- Unshielded Mempool (Traditional Open Transactions)
By comparing agent behavior in these two scenarios, we’ll evaluate how effectively Shutter protects transactions and measure its impact on MEV extraction and transaction fairness.
AI Agent Strategies in Action
- MEV Strategy Agents: Simulate front-running, sandwich attacks, and arbitrage both inside and outside Shutter’s encrypted mempool, testing its effectiveness in blocking MEV.
- Normal Trading Strategy Agents: Engage in standard trading activities without MEV tactics, providing a baseline comparison.
Key Components
- Shutter Swap Agent – A token swap agent that autonomously swaps tokens and logs transactions.
- Swap Management Agent – Automates strategy evaluation, decision-making, and transaction execution, interacting with ERC20 tokens, Uniswap, and multisend contracts.
- MEV Agent – A MEV agent that autonomously attempts to front-run Shutter Swap Agent transactions.
- Analytics Agent – Reads transactions from Swap Agent and MEV Agent logs and pushes data for real-time MEV dashboard insights.
- Backend Management – A Node.js API handling user authentication and MEV transaction logs with PostgreSQL.
- Dashboard – A React.js UI displaying MEV transaction details.
Partner with Isotropic for Your Blockchain & AI Needs
Whether you’re looking to develop autonomous agents, enhance transaction fairness, or integrate encryption-based security solutions, our expertise can help bring your vision to life. Let’s collaborate to shape the future of finance.
