The Complete Guide to Metalos

Everything you need to know about Metalos, from AI-powered Yield Vaults to Futarchy Governance and AI-Assisted Research.

1. Introduction to Metalos

What is Metalos?

Metalos is a multi-product decentralized finance (DeFi) application built on the Base blockchain. Our vision is to become the leading DeFi platform by providing users with a seamless, intelligent, and community-driven investment experience.

We aim to solve some of the biggest challenges in DeFi:

High Barrier to Entry: We simplify complex investment strategies.
Passive Governance: We foster active and informed community participation.
Opaque Information: We provide powerful tools for on-chain research.
Poor User Experience: We are committed to delivering a best-in-class user experience.

Metalos is built on three core pillars: Automated Yield Vaults, Futarchy Governance, and AI-Assisted Research.

The Metalos Solution

Metalos is designed to solve the key problems in DeFi by providing an integrated, user-friendly, and powerful platform for different types of users.

For the Investor: We offer simplicity and security through our AI-powered, auto-balancing Yield Vaults, taking the guesswork out of yield farming.
For the Futarchy Participant: Our Futarchy Governance system moves beyond simple voting, creating a meritocratic system where the best ideas are surfaced through financially-backed conviction.
For the Researcher: Our AI-Assisted Research tool empowers you to conduct deep, on-chain analysis with ease, transforming complex data into actionable insights.

2. Core Product: AI-Powered Yield Vaults

Overview: Your Personal AI Portfolio Manager

Metalos Yield Vaults are the foundational engine of our ecosystem. They are designed to provide the most accessible, transparent, and secure way for users to earn passive yield in DeFi, powered by an intelligent AI Auto-Balancing strategy.

Instead of forcing you to pick individual vaults, our AI-powered auto-balancer manages your portfolio, taking the guesswork out of yield farming. The AI constantly monitors the market and automatically rebalances your positions to optimize for the highest yield, saving you time and gas fees.

The AI Auto-Balancing Strategy

The core of our Yield Vaults is the AI-powered auto-balancing engine. This is the feature that allows you to simply deposit your funds and let our system handle the rest. The goal is to maximize your yield while adhering to your chosen investment strategy.

How it Works in a Nutshell:

You Set the Strategy: You choose a general investment strategy (e.g., "Conservative Yield" or "Aggressive Growth"). This sets your target allocation across our range of vaults.
AI Analyzes Your Portfolio: Our system periodically analyzes your current portfolio, comparing your actual returns to the optimal returns defined by your chosen strategy.
AI Generates a Rebalancing Plan: If the deviation between your current and target allocation is significant, the AI generates a new, optimized plan. This plan involves decreasing your position in underperforming vaults and increasing it in vaults with higher potential yield.
Profitability Check: The system runs a simulation of the rebalancing plan. It will only proceed if the expected increase in yield is greater than the gas costs required to make the trades.
Automated Execution: Once the plan is confirmed to be profitable, our backend system automatically executes the necessary transactions through your smart account to rebalance your portfolio.

Available Strategies

Metalos offers a curated selection of automated investment strategies, each with its own risk and return profile. In our initial version (V1), we are focusing on simple, understandable strategies to provide a secure and transparent experience for our users.

Our V1 vaults will focus on strategies such as:

Lending: These vaults will deposit assets into blue-chip lending protocols like Aave to earn a variable interest rate. This is generally considered a lower-risk strategy.
Blue-Chip Liquidity Providing (LPing): These vaults will provide liquidity to established trading pairs on major decentralized exchanges like Uniswap. This strategy carries the risk of impermanent loss but can offer higher returns.

Getting Started with Yield Vaults

The primary way to interact with our platform is through the auto-balancer.

Connect and Choose a Strategy

Connect your wallet and select your preferred auto-balancing strategy.

Deposit with a Single Click

Deposit your funds into the main auto-balancing contract with a single signature, thanks to our use of account abstraction.

Track Your Performance

Monitor the performance of your automatically managed portfolio on your dashboard.

Withdraw Anytime

You can withdraw your deposited assets and any accumulated earnings at any time.

Using the AI Portfolio Assistant

Metalos Yield Vaults include an AI-powered portfolio assistant to help you understand your investments. You can ask the assistant simple, natural language questions and get immediate, data-driven answers.

Examples of what you can ask:

"Which of my vaults is performing best?"
"How much have I earned in the last 30 days?"
"Explain how the GMX Delta-Neutral vault works like I'm five."

3. Core Product: Futarchy Governance

Overview: A Market for Ideas

Metalos is pioneering a novel governance system called Futarchy. Our vision is to create the most efficient and value-driven governance system in DeFi, moving beyond the limitations of traditional voting.

Futarchy transforms governance from a popularity contest into a market for ideas. Instead of voting, users trade on the outcome of proposals in a prediction market. This system surfaces the best decisions through financially-backed conviction.

How Futarchy Works

The process can be broken down into three main phases:

The Pledging Phase: Every proposal starts as a Draft and must gather enough community support in the form of financial pledges ($metalos and USDC) to become an Active Proposal. If a draft fails to activate, all pledges are fully refunded.
The Trading Phase: Once a proposal is active, its prediction market is created. Users can then trade pMetaLOS (Pass) or fMetaLOS (Fail) tokens using USDC. The price of the pMetaLOS token reflects the market's real-time prediction of the proposal's success.
The Resolution Phase: The outcome of the proposal is determined by the final Time-Weighted Average Price (TWAP) of the pMetaLOS token. This provides strong manipulation resistance. If the proposal passes, holders of pMetaLOS can redeem them for the underlying collateral.

How to Participate in Governance

Create a Proposal

Start by drafting a new proposal and making a minimum initial pledge to submit it for community consideration.

Pledge Support for a Proposal

Browse drafts and pledge your assets to a proposal you support to help it reach its activation threshold.

Trade on an Active Proposal

Once a proposal is active, use your USDC to trade on its outcome. Buy pMetaLOS if you believe it will pass, or fMetaLOS if you believe it will fail.

Redeem Your Assets After Resolution

Once the proposal is resolved, you can redeem your winning tokens for the underlying collateral.

Futarchy FAQ

Do I need $metalos to trade? No, only USDC is needed to trade on a proposal's outcome.
Is my pledge at risk? Not during the draft phase. If the proposal doesn't activate, you get a full refund.
Why should I participate? To influence the protocol's direction and to be rewarded for accurate insights.

4. Core Product: AI-Assisted Research

Overview: Your Best-in-Class Research Tool

Metalos includes a best-in-class research tool that empowers users to conduct deep, multi-faceted analysis of the DeFi ecosystem. Our vision is to provide a powerful tool that makes on-chain research accessible to everyone.

You can ask complex questions in natural language and get data-driven answers in real-time.

How to Use the AI Research Tool

Start a New Research Session

Navigate to the "Research" section and start a new session. You can browse example prompts if you're unsure where to begin.

Ask Complex Questions

You can ask the AI questions that require it to use multiple tools, like "Compare the security audits of protocols A and B and summarize the key findings."

Manage Your Research Session

Your conversation history is saved, and you can pin key responses for easy reference or instruct the AI to generate a summary of your session.

Share Your Findings

Publish your research to a community feed within the platform and share it on Farcaster with a single click.

Research Engine Capabilities

Our AI-Assisted Research engine can access and analyze a wide range of data. It is composed of several specialized agents that can:

Analyze on-chain data: Query the Base blockchain for real-time information.
Retrieve data from multiple sources: Access real-time information from DexScreener, DeFiLlama, BaseScan, and GitHub.
Analyze smart contracts: Read the source code of smart contracts to identify potential risks.

5. The Technology Behind Metalos

Smart Contracts: Our platform is powered by a suite of smart contracts that manage our Yield Vaults and Futarchy Governance system.
Farcaster Integration: We are currently integrating with the Farcaster social ecosystem to provide a unique social experience, from authentication to sharing your on-chain activities.
Frontend and UX: Our platform will be available as a Base Mini-App, and we use Account Abstraction to simplify wallet interactions, allowing for single-signature transactions.