PowerAgent Automation Network: Value Proposition & Functions

Decentralized, Trustworthy, and Reliable Contract Execution

Introduction

In the beginning, all of Defi consisted of manual transaction execution, because on-chain smart contracts could not, and still cannot, execute transactions themselves. In 2020, Andre Cronje from Yearn Finance (YFI) first introduced Keep3rV1, a decentralized marketplace where projects could post new jobs and others could search for Keeper jobs to try and decentralize automation. In partnership with Yearn, PowerPool pioneered the introduction of automated optimization of extrinsic yield on DeFi stablecoin vaults with Yearn Lazy Ape ($YLA)[1][2]. Soon after, in 2020, PowerPool launched PowerAgent v. 1 to serve as the primary decentralized automation tool powering existing and future PowerPool asset management products. Now, in 2023, PowerPool is launching an entirely redesigned PowerAgent v. 2 to provide more decentralized, trustworthy, and reliable autonomous automation enabling all client protocols to reduce reliance on internal, bespoke ‘bot’ based automation that raises issues of reliability and trust[3].

The majority of current DeFi products require some form of automation to perform routine on-chain tasks. With the advent of PowerAgent v2, these tasks, or as we call them — Jobs, can now be generalized to perform a wide range of functions, from improving the efficiency, trust, and reliability of existing protocols to permitting the development and operation of entirely new, innovative products.

Most protocols are still automating their jobs by running centralized ‘keeper bots’ on private servers and fragile RPC connections, posing reliability and trust issues. Widely-used ‘homegrown’ or ‘roll your own’ centralized and fragile automation provides basic functionality, but introduces trust and single points of failure into most solutions. If the single centralized private ‘keeper bot’ goes offline for some reason, then the entire protocol loses its ability to function.

PowerPool believes that in order to build robust and fail-safe autonomous protocols, developers must employ trustworthy and reliable automation mechanisms with a high degree of redundancy and decentralization.

The PowerAgent v. 2 Keeper network

PowerAgent v. 2 has been developed to fill the gap in trustworthy, reliable, and highly decentralized automation in the web3 space to provide all DeFi protocols, dApps, and individuals with this crucial, autonomous infrastructure layer. PowerAgent v2 is an open-source, decentralized, highly customizable automation network that offers guaranteed and secure conditional execution of smart contracts. It was designed as the “zero layer” for automation on which web3 products can be built. Client protocols can customize PowerAgent exactly to their needs, adding additional layers of Keeper selection algorithms and crypto-economic incentives for Keepers.

The PowerAgent v. 2 Value Proposition

The PowerAgent Automation Network is open for use by any client protocol seeking to incorporate open-source, decentralized, reliable, permissionless, generalized, autonomous, configurable, cost-effective, secure, and trustworthy automation into on-chain products and services. PowerAgent v. 2 has been designed to offer the full range of features required to enable broad adoption:

Open source codebase

• Open to inspection by client protocols and their auditors and users at any time
• Shared with an increasing number of other client protocols, all participating in audits and testing
• Open to being extended by all protocols using the PowerAgent network

Generalized functionality

• Supports an expanding number of basic event-driven functionalities
• Reduces client protocols’ need to code, audit, and maintain
• Reduces time to market
• Job-specific signer set requirements scale from low value, low slashing penalty to very high value, high slashing penalty tasks

Permissionless

• Anyone can join the PowerAgent Network Keeper node simply by staking sufficient $CVP
• Any (EVM compliant) protocol can choose to use PowerAgent, initially on EVM-compliant L1/L2s
• Client protocols can increase/decrease their signer set credentials requirements at any time on a per-job basis
• Keeper nodes can increase or reduce their stakes and signer set credentials at any time, although stake reduction is implemented with a delay to deter malicious behavior

Autonomous

• Job execution is totally independent of the client protocol, increasing trust and reducing points of failure
• Users of client protocols are able to independently audit and monitor tasks, even becoming Keeper node operators themselves
• Keeper nodes operating on a given EVM-compliant L1/L2 are totally independent of other chains/layers

Decentralized

• Client protocols can specify the minimum number of independent Keepers/nodes in job-specific signer sets
• No single points of failure or dependencies in the PowerAgent automation network
• Scaleable, no upper limits on numbers of Keeper nodes or client protocols

Configurable

• Event triggers, job specifications, and minimum signing requirements defined job-by-job by Job Owners
• Chronological events and arbitrary on-chain conditions encapsulated in custom contracts can be used as triggers
• Oracle-based calculations with a stored state permit flexible weight rebalancing strategies e.g. ‘take the worst performing tokens in the basket, sell half, and buy more of all the other tokens in the basket’

Cost-effective

• Fees can be defined job-by-job, independent of market conditions, leading to lower costs, and more predictable execution for Job owners
• Fees can be varied based on other evaluated conditionality, enabling client protocols to forecast and control automation costs

Secure

• Random Keeper selection and competition between increasing numbers of Keeper nodes make it virtually impossible for bad actors to collude or target specific jobs
• Usage by ever-more protocols across ever-more EVM L1/L2 chains/layers contributes to repetitive auditing and continuously hardens the shared codebase

Trustworthy

• $CVP staking by Keepers provides ‘skin in the game’ that can be slashed in the event of non-performance, as controlled by other competing Keeper nodes on the network
• Job Owners can specify signing sets of Keepers and options for Keeper selection consistent with the cost of no execution.

Who can be a Keeper and earn job fees? Any Ethereum (and other EVM PoS) chain node operators can run a PowerAgent Automation Network Keeper node to execute jobs and earn even more ETH (and BNB, GNO, etc.). PowerAgent Keeper nodes are already available with DAppNode. Keeper nodes can be combined with any LST/DVT/Eigenlayer clients to finance stakes, minimize slashing risk, and participate in cross-staking. The combined node bundle enables maximum APR on PoS noderunner stakes.

Potential Applications for PowerAgent v. 2

The potential use cases for PowerAgent jobs are seemingly endless. Probably no one yet knows the full scope of future automation jobs. However, there are many existing examples of protocols already using various types and degrees of automation that can benefit from next-generation trustworthy automation networks like PowerAgent v. 2:

• Vaults: harvesting, compounding, and other routine operations
• MakerDAO/Liquity/Compound/AAVE automatic collateralization maintenance
• Automated fund management strategies
• Balancer v2 asset managers
• DEX limit orders
• Automated LP: Uniswap v3 position management
• On-chain oracles
• Updating sensitive protocol parameters

Job Categories Supported by PowerAgent

PowerAgent is designed to be a generalized tool capable of automating a wide range of jobs. It is highly configurable, allowing Job Owners to customize each individual job in context.

There are 3 main categories of Jobs currently supported by PowerAgent at launch:

1. Selector-type (Signature) Jobs are the basic type of automation Jobs, employed when a certain function with no input parameters must be executed within a predefined time interval. For example, when a Vault needs to be harvested periodically, once a day, every hour, etc.
2. Jobs with predefined CallData are a slightly more complex type of Job. It is used when Job function parameters (CallData) are provided by the Job Owner and must be passed during its execution. Such Jobs may be used for validating protocol users’ parameters (CallData consists of an address) or harvesting Vaults with an option to simultaneously re-stake rewards (CallData consists of a boolean value), or others.
3. Jobs with an external Resolver are the most numerous and complex type of Jobs. A Resolver is a separate function in a smart contract that defines the conditions of execution and returns a boolean value signifying whether execution should take place and the CallData that should be passed to the Job function during execution. Connections to off-chain events via oracle networks also fit into this category. These Jobs have a wide variety of use cases: limit orders, automated fund-management strategies, liquidations of limit orders, execution of arbitrage opportunities, protocol parameters updates, etc.

Conclusion

PowerAgent Automation Network is a significant new addition to blockchain solutions across potentially all EVM chains. It is permissionless, so anyone can use it, and anyone can participate as a Keeper node and earn fees. PowerAgent is extremely configurable and capable of fulfilling numerous automation tasks for a wide range of clients’ applications. We strongly believe that like oracle networks, PowerAgent will become an essential ancillary network for a growing number of leading DeFi protocols, dApps, and individuals, across a growing number of EVM chains.

If you have any questions about PowerAgent or its use cases or want to incorporate decentralized robust automation into your on-chain tasks, please join our Discord channel and feel free to ask your questions. Also, please follow PowerPool on Twitter to keep informed of all upcoming events and publications.