How to Launch Sentient NFTs and Level Up DeFi

Transcript

hey guys so i'm james and today we're going to be talking about launching sentient nfts and leveling up d5 so uh i want to before we get into the details i want to introduce you to someone very special someone that is uh quite literally one of a kind in kind of multiple levels she doesn't live in like lisbon or europe or actually this planet she lives on the blockchain specifically she lives on polygon because east ethgasp is way too high but she's called freya and she's an anft she is the first ever autonomous a autonomous nft and an aft nft is an nft that can do things on its own it can take arbitrary

actions under arbitrary conditions independently without the need for human intervention so we can try and interact with her because while while she uh while we can't physically meet her we can still interact with her make sure this is right hi what is your name so she's an ai that's

okay we'll just use text she's an ai that uh represents the anft no why is this not working demo is what could possibly go wrong all right i don't know what the issue is but uh

moving on huh i do but uh it's okay don't worry about it so i'll just show an example of uh what she does like the the way the ai is supposed to work is that it um reads the on-chain data that the anft is like performing and this is an example of something that freyja has done freyja is her day job so to speak is an arbitrage bot so she buys low cells high and you can see here she bought one rep busd on polygon for more than one usdc so stonks she's making money that's great so she does this independently so without the need for a single human so

over time she is just making money and i think that like the financial applications are relatively uh boring but like it illustrates the the concept so she will just do keep doing this constantly and constantly over and over again uh you know everything needs to pay transaction fees um in blockchains and she is able to sustain her own fees by the profit she makes as an arbitrage bot so she can keep looping forever so the uh as an anft the the a nft is purely unchained it doesn't know about anything off chain the ai is kind of a wrap around that reads

the unchained data so the ai knows about the anft but the anft does not know about the ai so the the way you can do this is with autonomy network and i'm the founder uh autonomy network is a decentralized automation protocol focusing on helping dexes grow their volume as a beachhead but also more and more branching out into launching sentient nfts and the kind of like met uh all the implications for that so autonomy is pretty inevitable when you look at the evolution of applications in the blockchain space like for example like defy summer you know aggregators yield farms etc requires things like uniswap and rv in order to work and the kind of next level of more advanced functionality like

limit order stop losses these anfts requires autonomy to exist it's it's not possible without it so the general problem that we're solving is that humans are not 24 7. i don't know about you but i've gotten absolutely [ __ ] erecting crypto before and d5 because you can't risk manage there's no like stop losses on uh dexes for dapps that want to add these features um they typically have to roll their own solution it takes months it's really costly and uh yeah it's super centralized so autonomy is a tool for dapps like dexes to add features like limit orders stop losses preventing permanent loss etc for users it's the same ux as a centralized exchange they don't need to know anything about how how it works uh they just click it and it and it

works for dapps that want to add these kinds of features it's an off-the-shelf easy to implement solution that can be used to automate literally anything they don't need to run their own bots or servers it's just a ui change i'm using d5 as an example just because it it it's easy to explain the concept pretty quickly but the way it generally works three steps so user makes a request and the condition becomes true like sell ether 5k then eth passes 5k and a bot from a decentralized network of bots executes this request they're incentivized to do so anyone can run one of these bots and the user pays a bounty to the bot as an incentive and running a bot requires staking our token for a like a proof-of-stake um algorithm to

avoid racing conditions so we never spend too much time on this we have a bunch of like integrations uh mainly with dexes like upon us cumulatively have over 100 mil daily volume um but more importantly we uh have some pilot pilots in progress or more relevantly we have some pilots in progress with in the kind of nft space so anfts like i said um are autonomous nfts nfts that can actually do things so in the same way that autonomy can be used to automate a single action like a limit order it can be used to make an a contract like an nft autonomous um so we for example we have a pilot with abigail for

uh using a navigation essentially as like a treasury management tool so you'll send your ghost tokens to the avagarche and it will automatically lend them out and as rates become better somewhere else it'll automatically withdraw and deposit elsewhere so that it's always getting the optimized yield um and it's like nfts are typically kind of separated from d5 but this presents like an interesting intersection of the two because when you have um an anft that is owned by someone and therefore owns the profit that it makes you have these nfts that are like have a fundamental value not just like purely speculative you know it has a predictable revenue stream in the in the case of

like arbitraging or lending out tokens and it can therefore be used as collateral so it's a new money lego brick within d5 that kind of bridges d5 and nfts i think uh a more interesting use case though that captures the imagination a bit more is nf npcs non-playable characters in games so like there's a reason that blockchain games are typically pvp and that's because it's not possible to have npcs like in general with blockchain games because blockchains are passive it requires you to interact with them or someone to interact with the blockchain in order for it to do stuff but for the using autonomy we can essentially create these contracts that in that do things on their own so we can create uh characters in games that

interact with you interact with each other um that kind of 100x is the the interactivity and the complexity of blockchain games because something like skyrim or cyberpunk is like literally impossible like aside from the computational complexity it's impossible with blockchain games um just because like it's impossible to have contracts before now it was impossible to have contracts that did things on their own but i think like so we have a pilot project with decentral games they're a casino in decentraland they have a high roller table so like before they were they wanted to just block people from entering who didn't have a high enough balance but um this proof of concept that we're

working on that kind of showcases the unique aspects of npcs is essentially a bouncer to uh to the high roller table so instead of just like being prevented from uh entering you can like sink past the bouncer and the bands will randomly walk around the room occasionally throughout the day and kick people out who aren't supposed to be there they'll check your balance etc and something like this is not possible without autonomy because like you specifically don't want to interact with the bouncer because you know you're going to get kicked out and so you need the thing to interact with you first so it's kind of a use case that is like not possible

in other settings and kind of in the same way that you can use nfts in multiple different uh games you can interact with the same npcs in multiple different games so you could meet the bouncer in some like i don't know underground world and it gives you a discount for being kicked out because he respects your it's nasty or something i don't know but um so that the composability and the ability for people to build on top allows allows these things to become a platform so for example like cryptokitties when it was launched dapper never envisioned these things becoming a platform like people built cat hats you know cat races etc without their permission without even talking to them and they

increased like the value of the ecosystem without dapper doing anything and i think in a similar way that's what we're going to see with blockchain games now especially with npcs because like blockchain games are typically you know just objectively worse than like traditional games from a feature standpoint because there's no npcs and the computational complexity is obviously a lot less i think the computational complexity will come with time but the the kind of key missing piece that was impossible is this mpc aspect i think now that this has been enabled we we're kind of on parallel from a feature set perspective with

traditional games but i think the most interesting aspect of this is that because people can build on top of it because they can use it as a platform you can have potentially millions or or billions of people contributing to this by either building on top or interacting with the with the system such that the complexity and richness of the world is far greater than what a single game studio um is able to to create uh so i think like in five to ten years we're going to see this phase shift where even without the kind of incentives of the play-to-world model um blockchain games have been kind of going to become better than uh than regular games because they like

they their feature parallel with extra stuff so i think like things like them on your open world stuff is kind of like the ideal application for this because um having npcs that are just roaming around like monsters that you kill in world of warcraft or people that give you quests or anything like all of these can be automated and become npcs and it's it's a kind of essentially a new form of life in the sense that um these things are completely independent you can't turn them off the blockchain's running 24 7. uh they can breed they can have children they can evolve they use gas the same way that we eat food they can mutate when they have children and naturally select so i think one of the kind of quirky

things that we're also exploring i don't know if you guys have heard of sophia but she's a physical robot with an ai in her and she was the first ever robot citizen in saudi arabia and uh we're essentially working on the first the blockchain version of that so lil michaela is a virtual influencer she has like she's essentially a cgi created character um with like three million followers on on instagram and we want to take her put her on the blockchain as an anft that owns herself essentially an npc and uh give her citizenship i think it makes more sense for these kinds of things to get citizenship than something like sophia because

she can own property she can buy lens sell trade she can vote she can have children she can send messages all completely autonomously uh without the need for a single human whereas uh sophia just gets kind of like wheeled out to conferences uh occasionally uh so i think that's kind of like the crazy taking it to the nth degree um just kind of showcase like what can really be done with autonomy um but yeah that's uh that's essentially sentient nfts and if you're like a game developer or you want to launch any of these anfts definitely come talk to me i would love to like help with that and yeah thank you any questions

is um i apologize if i missed it in the beginning but if if i didn't um what are the security implications of letting a bot trade on your behalf it sounds to open up an attack vector uh yeah so like the it trades with its own assets um so you i mean the way we have it currently is that the anft can only trade with things that it has a bounds of itself so you send assets to it and you know it can trade and do whatever but uh i think it's

famous as words but i think it's pretty it's pretty secure because you can have a required statement in if you're familiar with solidity that requires that it's making money um which we actually have implemented i can show you the code if you like it's actually verified on chain but yeah you can enforce the fact that transactions generate profit and they can only trade with as much money like as you explicitly send to them anyway sorry in the other scenario which were you were talking about earlier which is when you trade in on a like a limit order on

a dex for example that i think is is it the same argument [Music] so so you were talking earlier about the limit order on the decks i thought that was had nothing to do with the nct oh yeah no your the the limit orders on the dexes um has nothing to do with a nfts they just they both use autonomy and i'm just using the limit order as an example because i think it's it's easier to understand the mechanics of like how it works like limit orders like as a project we like that's our main beachhead um that's the main economic use case and like probably always will be but the the anft thing i think it's there's very little

economic use case right now but i think because especially because of the gaming space and the whole npc thing it's gonna get like much much greater so cool yeah thanks guys