Abstract

Cardano is celebrated for its research-driven design and robust security but faces a critical challenge: translating its technical excellence into a seamless user experience. Fuku AI proposes a bold solution—an on-chain AI agent paired with robust backend infrastructure—to make interacting with Cardano as intuitive as having a conversation. This proposal details our plan to build an intelligent agent that automates Cardano DeFi tasks, which will work in parallel with a powerful data infrastructure we will create, which, together, will make Cardano more accessible for both users and developers. By leveraging Cardano’s native capabilities and emerging AI technologies, we aim to transform Cardano into the most user-friendly blockchain platform.

Achievements on Solana

Over the past six months, a makeshift team of 15 developers has successfully launched Fuku’s AI-driven services on Solana. With over 100,000 lines of code, hundreds of hours of developer work, and a fully self-funded operation, we’ve built a robust platform offering advanced functionalities across DeFi automation, analytics, and portfolio management.

Key highlights include:

• Natural Language Token Swaps: Simplified token swaps and concentrated liquidity management through conversational interfaces integrated with Raydium.
• Automation & Strategy Bots: AI-driven automated trading bots (AutoFuku, HunterFuku) enabling proactive , fully automated onchain investment strategies based on real-time conditions and data analytics.
• Advanced Analytics and Security Checks: Instant access to detailed token analytics, security flags, and real-time charting via Dexscreener integration.
• Portfolio and Wallet Management: Comprehensive wallet management including profit-and-loss analytics, historical funding data, portfolio tracking, and simplified token transfers.
• Automated Trading Tools: Advanced trading utilities such as volume bots, Jupiter limit orders, and AI-driven automated leveraged trading strategies on Hyperliquid.
• Integration with External Data Sources: Real-time integration with Twitter, Telegram, and Pumpfun for instant notifications and automated trade execution based on social signals.

Our backend infrastructure includes powerful Rust and Python services for seamless integration of AI logic, secure key management, and real-time blockchain event streaming. Key components include secure JWT-protected Telegram bots, comprehensive wallet analytics, automated trade execution, and cloud-hosted PostgreSQL databases.

These achievements illustrate Fuku’s proven ability to deliver AI-driven innovation at scale—capabilities we now aim to bring to Cardano.

Vision and Solution Overview

Fuku’s vision is an AI-driven personal DeFi assistant that simplifies interactions with Cardano. Users can simply ask the agent, “Swap 100 ADA for a stablecoin and stake the rest,” and the agent handles the complexities seamlessly. The solution includes:

• AI Agent Layer: Natural language interface executing tasks and educating users in the process.
• Developer Data Infrastructure: Backend services indexing blockchain data, caching, and interfacing with nodes to ensure swift, reliable execution.

By pairing these elements, Fuku delivers a superior user experience, combining user-friendly interactions with robust, secure performance.

AI Agent Architecture

Fuku AI’s robust architecture will consist of:

• User Interaction Layer: Multi-platform client interfaces (Telegram, Web, Mobile).
• AI Logic Layer: Interprets natural language and formulates structured action plans.
• Orchestration Layer: Coordinates task execution, manages transaction flow and errors.
• Integration Layer: Executes specific blockchain interactions through modules connected to Cardano dApps.
• Data & Knowledge Layer: Real-time blockchain indexing from our in-house data infrastructure, providing instant access to essential data and educational content.
• Security & Key Management: Secure wallet integrations ensuring user control over assets, with stringent security policies for transaction execution.

Developer Infrastructure

Our comprehensive infrastructure includes:

• Node Cluster & RPC Layer: Reliable global Cardano node clusters for low-latency blockchain access.
• Custom Indexer: Processes blockchain data into structured formats for rapid queries.
• Caching Layer: Ensures instant responsiveness and scalable performance.
• Developer APIs: Public-facing APIs to support the broader Cardano ecosystem.
• Global Deployment & Scaling: Multi-region, high-availability infrastructure to maintain 99.9% uptime.

This infrastructure not only supports the AI agent but significantly strengthens Cardano’s overall development ecosystem.

Educational Layer

If “ProfessorFuku” is toggled on by the user, Fuku AI will integrate an educational layer directly into future user interactions, enhancing accessibility by turning complex blockchain tasks into learning experiences. The AI agent will proactively provide brief, context-aware explanations during transactions. For instance, when initiating liquidity provision, users might receive a quick explanation about impermanent loss, with the option to ask follow-up questions.

Features of the educational layer include:

• Contextual Tips: Short, timely explanations during user interactions.
• Interactive Explain Mode: Detailed step-by-step guidance for complex tasks, such as staking ADA.
• Personalized Learning: Tailored explanations based on user expertise, ensuring relevance without overwhelming users.
• Standalone Educational Content: Users can directly request structured tutorials on topics like “Getting Started with Cardano DeFi.”

The educational layer will leverage official Cardano documentation and community resources, simplifying complex topics like eUTXO, slippage, and staking. This integrated learning approach aims to transform user hesitation into confidence, significantly enhancing user retention and engagement within the Cardano ecosystem.

Long-Term Impact & Growth Strategy

Fuku AI aims for sustained, transformative impacts:

• Increased User Adoption: Simplified onboarding and reduced friction will significantly grow active DeFi participation.
• Activation of Dormant Capital: Turning passive staking into active DeFi usage, boosting liquidity and ecosystem efficiency.
• Continuous Integration: Quickly adopting new Cardano innovations (e.g., Hydra scaling, governance participation).
• Community Collaboration: Actively engaging stakeholders for continual feedback and ecosystem-driven enhancements.
• Sustainable Monetization: Establishing revenue streams through small fees and subscription models for ongoing improvements. Charging reasonable rates for use of our Public-Facing APIs to fund continuing integrations and ecosystem growth.
• Enhancing Reputation: Positioning Cardano as a leading blockchain by showcasing practical, user-centric AI innovation.

Fuku AI envisions Cardano becoming synonymous with effortless blockchain interaction, significantly expanding its user base and ecosystem vibrancy through reliable, AI-driven automation.

Despite Cardano’s technological strength, UX friction remains a significant barrier. New users encounter steep onboarding hurdles—complex wallet setups, understanding UTXOs, selecting stake pools, and navigating DeFi concepts like impermanent loss. Current wallets and dApps are powerful but intimidating, deterring mainstream adoption.

This friction directly translates into low DeFi activity, with most ADA (over 72%) passively staked rather than actively utilized. Early concurrency issues on Cardano DEXs such as SundaeSwap, slow block confirmation, and multi-step transactions have left lasting impacts on user confidence and activity. Simply put, Cardano’s complexity prevents widespread engagement, leaving vast potential untapped. Fuku AI addresses these issues directly, aiming to simplify and automate interactions, thereby significantly boosting user engagement. It further seeks to simplify the developer experience on Cardano, by providing accessible, easily readable blockchain data to any project that requires it.

Fuku AI’s on-chain agent and underpinning infrastructure promise to introduce lasting benefits for the Cardano ecosystem. The following points outline the anticipated impact and strategies for long-term, sustainable growth:

1. Higher User Adoption and Retention
   By lowering the entry threshold for dApp usage through natural language processing of user prompts, Fuku AI is positioned to attract new users and retain them. The agent’s intuitive interface and safety checks reduce the likelihood of failed transactions or confusion, creating a positive first impression.

2. Activation of Dormant Capital
   Cardano’s large volume of passively staked ADA can be partially funneled into more dynamic DeFi activities, once the friction is removed. Enhanced liquidity and usage of DeFi services, such as decentralized lending or yield farming, benefit the entire Cardano network.

3. Continuous Integration of Cardano Innovations
   As Cardano evolves (e.g., Hydra channels, sidechains like Midnight, new governance mechanisms), Fuku AI will remain aligned with ongoing developments, incorporating new transaction types and making them AI-accessible (e.g., Hydra-based instant swaps).

4. Collaboration and Community Involvement
   Fuku will seek partnerships with dApps, stake pool operators, and the broader developer community. This includes opening parts of the infrastructure for communal contributions, encouraging new plugin creations, and hosting hackathons for feature expansions.

5. Public-Facing API Access for Cardano Developers
   As explained in more detail below, Fuku’s in-house data infrastructure will be available for paid use by other Cardano developers and projects. Querying Cardano blockchain data will be made inexpensive and simple, encouraging onchain ecosystem growth.

1st Milestone (40%) - On approval to fund development on Cardano.

2nd Milestone (30%) - When we have basic functionality available for Cardano users. Allow users to swap, trade, and use a number of the above mentioned features with our bot.

3rd Milestone (30%) - When all functionality is completed, and the data source provided is available for paid use by other Cardano developers and projects.

• Three Senior Full Stack Developers: $100,000 annually per developer ($300,000/600,000 ADA)
• Six Junior Full Stack Developers: $60,000 annually per developer ($360,000/720,000 ADA)
• AI Agent Development & LLM: AI agent design, LLM integration, fine-tuning, and API usage costs. ($150,000/300,000 ADA)
• Cardano Backend & Smart Contracts: Smart contract and backend engineering for Cardano-specific protocols. We anticipate this will require contract work outside of our in-house dev team’s capabilities. ($200,000/400,000 ADA)
• Indexing & Data Infrastructure: Cardano node clusters, blockchain indexing services, GraphQL APIs, caching. ($150,000/300,000 ADA)
• Cross-Chain Interoperability: Bridges and integration tooling connecting Cardano with Solana, EVM chains, etc. Providing liquidity on the bridge for in-house handling. ($200,000/400,000 ADA)
• Client Development (Telegram/Web/Mobile): Telegram bot, web dashboard, native mobile app development. ($150,000/300,000 ADA)
• Security Audits and Testing: Smart contract audits, penetration testing, security assessments. ($100,000/200,000 ADA)
• Cloud Infrastructure & DevOps: Global cloud infrastructure, DevOps engineering, high availability. ($180,000/360,000 ADA)
• Educational AI & Onboarding: AI-driven educational content and interactive onboarding flows. Requires extensive training. ($100,000/200,000 ADA)
• Marketing & Community Outreach: User growth initiatives, developer outreach, community engagement. Engaging with top crypto influencers to cement Fuku as "your gateway to Cardano." ($120,000/240,000 ADA)
• Legal and Compliance: Regulatory compliance, legal structuring, API terms compliance. ($70,000/140,000 ADA)
• Reserve & Contingency: Funds reserved for unexpected costs or adjustments. Promote hackathons, trading competitions with our bot. ($20,000/40,000 ADA)

The team already has 7 core developers, 5 community managers, and one CEO/Leader.

We estimate the full project described in the proposal could be completed as soon as six months. But we will continue to build after the above has been completed, to make it as robust as possible.

Project lead has been in the cryptocurrency ecosystem since 2017. Lead developer has worked for Crypto.com and JP Morgan’s blockchain team (Onyx).

On this project’s Solana version, over 100,000 lines of code have been written to allow for over 65 different onchain functions to be called. We have supported over 950 users, and, in varying capacities, already have the code to support four chains (Solana, Base, Abstract, Hyperliquid).

Cardano Node Servers (Relay/API), Indexing Servers (DB Sync), Database Instances (PostgreSQL), Caching Layer (Redis/Memcache), API/GraphQL Servers, Load Balancers, Chat GPT, Twitter Premium API, Telegram API.

Because the project will be faced with ongoing costs incurred by its usage of third party APIs (Twitter premium, ChatGPT, server costs) usage of our tools will be paramount to our sustainability. These ongoing costs will be covered by the transaction fees taken by the agent, and the costs we will charge to other projects rutilizing our API to fetch the blockchain data we will index and expose.