ADAM Litepaper

Updated June 2025 — Version 0.2

Abstract

AI‑Driven Adaptive Market Making (ADAM) is an autonomous portfolio‑balancing and liquidity‑provisioning system built on Cardano. ADAM combines deterministic rebalancing logic with real‑time, AI‑powered token‑risk analysis provided by T, Flux Point Studios’ agentic intelligence entity. The goal is to maintain optimal asset allocation based on user specifications while surfacing actionable insights on market conditions, social sentiment, and on‑chain metrics—empowering users to compound yield with lower risk.

Motivation

Traditional market‑making and rebalancing strategies rely on static rules that ignore rapidly evolving token fundamentals, community sentiment, and liquidity shocks. DeFi participants need:

Adaptive execution that reacts to changing risk factors.
Actionable intelligence distilled from diverse data sources.
Non‑custodial automation they can trust.

ADAM addresses these gaps by unifying a rules‑based rebalancer with T's risk‑analysis engine.

System Overview

┌────────────────────────────┐
│  Wallet / Portfolio State  │  ← UTxO snapshot + prices
└──────────────┬─────────────┘
               │ fetch
               ▼
┌────────────────────────────┐
│  Allocation Analyzer       │  ← target %, tolerance
└──────────────┬─────────────┘
   needs rebalance? │ yes             no │
               ▼                      ▼
┌────────────────────────────┐   ┌─────────────────────────┐
│  Rebalancing Engine        │   │  Sleep / Monitor        │
│  (deterministic)           │   └─────────────────────────┘
└──────────────┬─────────────┘
               │ builds tx
               ▼
┌────────────────────────────┐
│  Trade Execution Layer     │  ← DEX router
└──────────────┬─────────────┘
               │ tx hash
               ▼
┌────────────────────────────┐
│  AI Risk Analyzer (T)      │  ← TapTools, Xerberus, X, Others
└──────────────┬─────────────┘
               │ notifications / dashboard
               ▼
           End‑user / dApp

Parameters (User Specified)

Variable

Default

MIN_PROFIT_THRESHOLD

0.02

MAX_POSITION_SIZE_ADA

MIN_TRADE_SIZE_ADA

MAX_SLIPPAGE

3.0

AI‑Enhanced Risk Analysis

While the deterministic engine keeps allocations on target, T continuously scores each token on:

Price momentum & liquidity (DEX volumes, order‑book depth)
On‑chain health (active wallets, whale flows, contract events)
Social sentiment (Twitter/X, Discord, Reddit activity)

Unified API

POST /analyze-token
{
  "tokenName": "SNEK",
  "policyId": "279c909f348e533da5808898f87f9a14...",
  "network": "cardano"
}

The response returns a directional bias (Bullish / Bearish), confidence level, and explanatory bullet points. Users can opt‑in to:

Alerts before rebalances if risk spikes.
Override suggestions (e.g., pause buys on high‑risk tokens).

Implementation Stack

Layer

Tech

Liquidity Pool Inisghts and DEX transaction submissions

https://github.com/IndigoProtocol/dexter & https://github.com/IndigoProtocol/iris

Off‑chain agent runtime

Node.js (TypeScript)

Data ingestion

TapTools, Xerberus, Blockfrost, X, Lunar Crush, ADAWhiz, Market Raker AI

Wallet & Tx library

MeshJS + lucid-evolution

Security & Compliance

Non‑custodial keys: ADAM operates via client‑side wallet signatures; funds never leave user custody.
Rate‑limiting: AI calls are signed + metered; no PII stored.

Launch & Access

ADAM will launch in three controlled phases:

Phase 1 – Access granted for holders of T1 ADAM Launch Pass (Black and Copper - 250,000 $AGENT - Max Supply of 10 - Earliest Access to Launch and all new features) while we closely monitor operational performance.
Phase 2 – Access widens to holders of T2 ADAM Launch Pass (Aluminum - 100,000 $AGENT - Max Supply of 50 - Earlier Access to Launch and all new features). Once again we monitor and confirm stability.
Phase 3 – After final checks, access is granted to holders of T3 ADAM Launch Pass (Blue - 50,000 $AGENT - Uncapped - Access to ADAM and all new features after early access has ended).

These ADAM Launch Passes act as a bridge between users having tiered access now versus waiting 30-60 days until our $AGENT Subscription service has been audited and launched on mainnet.

$AGENT Subscription

Once launched, users pay 10,000 $AGENT per month to Flux Point Studios (2% of subscription fees go to the on-chain treasury for ecosystem growth) to activate one trading agent bound to a single wallet. Support for additional agents per user will be introduced in July 2025.

Team

Flux Point Studios, Inc.

Legal Disclaimer

This document is for informational purposes only and does not constitute investment advice or an offer to sell any security. Digital asset markets are volatile and carry risk. Always perform your own due diligence.

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