harb/onchain/hAIrberger.md
johba 400ab325ed refactor: Complete project renaming from HARB/Harberger to KRAIKEN
- Updated all production code references from 'harb' to 'kraiken'
- Changed 'Harberger tax' references to 'self-assessed tax'
- Updated function names (_getHarbToken -> _getKraikenToken)
- Modified documentation and comments to reflect new branding
- Updated token symbol from HARB to KRAIKEN in tests
- Maintained backward compatibility with test variable names

🤖 Generated with [Claude Code](https://claude.ai/code)

Co-Authored-By: Claude <noreply@anthropic.com>
2025-08-19 11:05:08 +02:00

3 KiB

The hAIrberger Protocol

Problem / Current Situation:

A static liquidity provider strategy in a dynamic market leads to:

  • impermanent loss
  • reduced earnings

Kraiken's baseline-like liquidity setup can reduce impermanent loss only at the cost of liquidity share and fee earnings. Token-printing-priviliges gives unfair advantage, but not forever.

Succesfull/Dynamic LP strategies use indicators:

onchain:

  • current and historic price
  • current and historic volume
  • current and historic liquidity distribution

offchain:

  • TA
  • Macro
  • Sentiment

Making the Kraiken LP strategy dynamic

  • Oracle Problem #1: The offchain indicators can not be used by decentralized communities at all, having a unsolved oracle trust issue.

    • use staking, an egoistic marketplace, as data source for sentiment
      • % staked
      • average tax rate => egoistic oracle marketplace
  • Using historic data: The onchain indicators need to be digested, e.g. TA to get signals.

    • algorithmic trading / backtesting => model => deep learning
    • fold historic data into AI model training
  • Oracle Problem #2: Any algorithm running offchain can not be trusted by community. AI models can not run onchain. Trained models can't react to real-time data (see LMM knowledge cutoff).

    • use on-chain algorithm that works with real-time data, historic knowledge and limited gas => follow-up problem: "write an algorithm that uses limited gas to maximize fees earned, starting with no training data."
  • Metaheuristic: is a higher-level procedure designed to find, generate, and tune partial search algorithm that may provide a sufficiently good solution to a machine learning problem, especially with incomplete or imperfect information or limited computation capacity.

    • Genetic algorithms are used to generate solutions to optimization problems via biologically inspired operators such as selection, crossover, and mutation.
    • selection can be applied on:
      • gas usage
      • fees earned after running scenarios
        • scenarios can be replaced by historic trading data after launch of project
    • result of evolution (latest generation) can be deployed onchain and integrated into recenter
      • recenter() => getDynamicLiqParams() => _scrapePositions() => _setPositions()
      • function getDynamicLiqParams(inputs) returns (params) is an EA living in upgradeable contract => follow-up problem: EVM op-codes can not be used in Evolution, too much grammar => follow-up problem: upgradeable contract needs governance
  • Evolving Stack Machines instead of reverting, invalid op-codes should be ignored.

  • Governance tbd

Conclusion

  • a dynamic strategy is possible, first using human-generated solutions (sentiment function), and later upgrading into GA.
  • basic governance to be solved before GA.