AI Agent to Break Barriers and Unlock Cardano DeFi Adoption

[Proposal setup] Proposal title

Please provide your proposal title

AI Agent to Break Barriers and Unlock Cardano DeFi Adoption

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

700000

[Proposal Summary] Time

Please specify how many months you expect your project to last

9

[Proposal Summary] Translation Information

Please indicate if your proposal has been auto-translated

No

Original Language

en

[Proposal Summary] Problem Statement

What is the problem you want to solve?

Cardano wallets and dApps remain too complex for mainstream users, limiting DeFi adoption to <1% of ADA wallets. Interoperability with other chains is lacking. Onboarding efforts are ineffective.

[Proposal Summary] Supporting Documentation

Supporting links

• https://fukuai.gitbook.io/fuku/
,
• https://docs.google.com/presentation/d/1ELAADCMxD5d9apxUCuYkMgcg0Qr7VA73/edit?usp=sharing&ouid=116910371249937259570&rtpof=true&sd=true
,
• https://drive.google.com/file/d/1IXPZi-L_xGGwACfsvSnLE6f-Yj3CdQ7s/view?usp=sharing
,
• https://fuku.ag/login
,
• https://x.com/fukuonchain

[Proposal Summary] Project Dependencies

Does your project have any dependencies on other organizations, technical or otherwise?

No

Describe any dependencies or write 'No dependencies'

No dependencies

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

Yes

License and Additional Information

All Cardano-focused work will be fully open sourced under MIT-license. Algorithms powering automated trading will remain proprietary.

[Theme Selection] Theme

Please choose the most relevant theme and tag related to the outcomes of your proposal

DeFi

[Campaign Category] Category Questions

Describe your established collaborations.

We are going to collaborate with wallet teams such as Yoroi and Cntrl (and hopefully Eternl) for native AI integration, and aim to do the same top Cardano DEXs (Minswap, WingRiders, SundaeSwap) via DexHunter for optimal routing. Our dev partners include HelloMoon (infrastructure) and DeSoft Technology (AI/automation), who will help us ensure secure Plutus integration and scalable deployment. Partnerships focus on embedding AI into user-preferred platforms to maximize adoption.

Describe funding commitments.

The Fuku AI team is committing its existing infrastructure, codebase, and dev resources from our Solana and Hyperfuku deployments — representing ~$800k USD in prior self-funded work. Wallet partners will provide integration support in-kind. No other external funding is committed for this MVP phase; Catalyst funding will directly enable Cardano-specific engineering, security, and launch.

Describe your key performance metrics.

Wallet AI Activation Rate: ≥15% of active partner wallet users try AI tab within 3 months.

First-Time DeFi Users: ≥10,000 wallets execute first DeFi tx via AI within 9 months.

On-Chain Volume: ≥$15M AI-routed swaps in 9 months (~2× current Hyperfuku, which has only been active for 1 month).

SDK Adoption: ≥3 dApps integrate AI SDK in first quarter post-launch.

KPIs prove the integration’s ability to unlock new users and increase Cardano’s DeFi participation.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Fuku AI will embed a conversational AI agent directly inside major Cardano wallets and leading dApps (Minswap, WingRiders, SundaeSwap) to simplify DeFi for new and experienced users. Instead of juggling multiple UIs or doing UTXO math, users issue one plain-language command.

Examples:

• “Swap 100 ADA for DJED and stake the rest.”

• “Add liquidity to the best ADA-INDY pool.”

What the agent does:

• Interprets the request with Cardano-specific command schemas.

• Routes trades through DexHunter to get best price and minimal slippage.

• Bundles multi-step flows (swap then stake, swap then LP) into one signed sequence.

• Shows optional Explain-Mode tooltips at each step.

This proposal delivers:

• Native AI tab or modal in Yoroi and other wallets

• DEX aggregation module for Minswap, WingRiders, SundaeSwap.

• Explain-Mode MVP for short, contextual education.

• Interoperability with other chains via our agent

• Lightweight SDK so any Cardano dApp can add Fuku-powered commands.

Traction we are building on:

Fuku and Hyperfuku are live and have generated over 10M USD in on-chain volume, with many users reporting profitable results. We will adapt this proven architecture to Cardano’s eUTXO model and wallet standards (CIP-30).

[Your Project and Solution] Impact

Please define the positive impact your project will have on the wider Cardano community

Cardano DeFi participation is below 1 percent of total wallets, while roughly 72 percent of ADA is staked. Complexity and multi-step onboarding keep most holders from trying DeFi.

How this changes with Fuku AI:

• Lower friction for first-time DeFi users: no leaving the wallet, no learning multiple dApp UIs, no manual DEX comparisons.

• Higher DeFi adoption and TVL: even a 0.5 percent redeployment of staked ADA into DeFi could add well over 100M ADA to TVL.

• Stronger wallets: Yoroi and the ecosystem wallets gain a simple, competitive UX differentiator.

• Easier developer growth: the SDK lets new and existing dApps offer AI-driven execution with minimal integration work.

• Treasury replenishment commitment: we are committing to return 10% of all Cardano-generated fees back to the Treasury in perpetuity, to contribute to continued ecosystem growth

Net effect:

• More users taking their first DeFi action.

• More transactions across integrated protocols.

• Clear, measurable lift in wallet engagement and ecosystem activity.

[Your Project and Solution] Capabilities & Feasibility

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

We have a strong foundation to deliver this project quickly and reliably. The technology stack, architecture, and many of the required integrations have already been proven in production through our deployments on other blockchains, particularly Solana. This means we are adapting existing, tested components to Cardano rather than starting from zero.

Technical readiness:

• Existing production codebase exceeding 100,000 lines, covering AI orchestration, DEX aggregation, transaction bundling, and Explain-Mode educational flows.

• Proven real-time indexing infrastructure capable of handling high transaction throughput with sub-second query latency.

• Secure key management via vault-based systems, JWT authentication for API endpoints, and existing security audit processes.

• Live integrations with multiple DEXs, aggregators, and wallet APIs on other chains, demonstrating interoperability and multi-protocol execution.

Execution track record:

• Deployed Hyperfuku AI trading agent that has generated over 10 million USD in on-chain volume and demonstrated profitability for many users.

• Successfully delivered multiple integrations that compress complex, multi-step DeFi actions into single conversational commands, with measurable increases in user engagement.

• Experience adapting the architecture to different blockchain environments, including UTXO and account-based models.

Feasibility for Cardano:

• Cardano-specific adaptations will focus on the eUTXO model, CIP-30 wallet standards, and direct integrations with target wallets and dApps.

• Scope has been intentionally narrowed to ensure a working product in market within 9 months: Yoroi and a couple of wallet integrations, DEX aggregation for top protocols, Explain-Mode MVP, and public SDK release.

• Existing infrastructure, CI/CD pipelines, and monitoring tools will be reused, allowing rapid iteration and stable deployment.

Our prior work shows we can design, build, test, and launch complex AI-driven DeFi products to a high standard. Additionally, our founder, Punk 2070, has been a public-facing personality in Crypto since 2020.

[Milestones] Project Milestones

Milestone Title

Months 1 to 3: Initial Integration

Milestone Outputs

• Deliver working Fuku AI integration in Yoroi beta build (AI tab or modal).

• Implement initial DEX aggregation module connected to Minswap via DexHunter.

• Initial Explain-Mode tooltips for swap and stake flows.

Acceptance Criteria

• Beta build of Yoroi integration can analyze most user requests in plain language

• Responses to beta build queries include analysis from multiple dex providers

• Explain mode responds sufficiently to a majority of user questions

Evidence of Completion

• Yoroi users reporting usage of AI tab or Explain Mode

• Statistics from Yoroi usage show engagement with initial toolkit

Delivery Month

3

Cost

400000

Progress

60 %

Milestone Title

Months 4-6: Tool and Integration Expansion

Milestone Outputs

• Add WingRiders and SundaeSwap to aggregation module.

• Launch Explain-Mode in full for swaps, staking, and liquidity provision.

• Begin Ctrl wallet integration in alpha.

• Cardano Integration into existing Telegram and Web dApp Agent

Acceptance Criteria

• WingRiders and SundaeSwap data accessible by aggregation module
• Explain-mode can fully detail all user requests for all common transaction methods
• Ctrl wallet AI tab has baseline functionality
• Telegram and web dApp agent can perform bridges from Solana and Hyperliquid to Cardano. Baseline swap and staking functionality available in-agent.

Evidence of Completion

• Proof that data from SundaeSwap and WingRiders are in aggregation module
• Proof that explain mode is robust and covers all generic Cardano topics
• Ctrl users reporting that the AI tab is available and has baseline functionality
• Telegram and web dApp demonstrate that Cardano transactions are available

Delivery Month

7

Cost

150000

Progress

80 %

Milestone Title

Months 7 to 9: Complete Integration, Publish SDK

Milestone Outputs

• Launch Ctrl integration publicly.

• Release SDK for third-party dApp integrations.

• Sign up at least 3 Cardano dApps to use SDK.

• Fully Open Source all Cardano-focused code under MIT license

• Publish KPI report showing adoption metrics, transaction volume, and user feedback.

Acceptance Criteria

• Ctrl wallet users report full functionality from AI tab

• SDK published

• Show the 3 partner dApps using SDK, or, at a minimum, a good faith effort to present the SDK to a minimum of 10 teams or projects

• KPI Report published

Evidence of Completion

• Code and SDK publicly viewable
• KPI Report publicly available
• Partner dApps report SDK usage or confirm our attempted contact for the same
• Ctrl wallet confirms functionality

Delivery Month

9

Cost

150000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

The total requested funding for the Fund 14 MVP is 700,000 ADA. This allocation has been designed to maximize delivery speed and ecosystem impact while maintaining cost discipline. All figures reflect fair market rates adjusted for a distributed, remote-first team structure and the fact that this phase leverages existing infrastructure rather than building a full in-house indexing stack.

1. Senior Blockchain/Full-Stack Developers (2) – 180,000 ADA

We will engage dedicate two of our senior-level engineers to lead development of our AI-toolkit.

• Scope of work includes:
  • Designing and implementing the Yoroi and Ctrl AI tab/modal integrations.
  • Developing DEX aggregation modules using DexHunter for Minswap, WingRiders, and SundaeSwap.
  • Ensuring all transaction logic is secure, efficient, and compliant with Cardano standards.
  • Mentoring mid-level developers and performing security-critical code reviews.

The budgeted amount reflects ~90,000 ADA per developer for the 9-month term, which is below typical Cardano senior developer rates due to our remote hiring strategy.

      2. Mid-Level Developers (2) – 140,000 ADA

Two mid-level developers will support feature build-out and integration tasks, working closely with the senior developers.

• Responsibilities include:
  • Implementing Explain-Mode UI components and in-wallet tooltips.
  • Developing the lightweight SDK for third-party dApp integrations.
  • Assisting with API connections to Koios, Blockfrost, CardanoScan, and DexHunter.
  • Performing integration testing and debugging in wallet environments.

Each developer is budgeted at ~70,000 ADA for the full project term, reflecting competitive but efficient compensation for skilled engineers in a distributed team.

          3. AI Operations & Model Costs – 80,000 ADA

These costs cover the infrastructure and operational expenses for running and fine-tuning the AI models that power Fuku AI’s natural language processing and Explain-Mode.

• Breakdown includes:
  • GPT-4o usage fees based on projected monthly query volume during the MVP phase. **Fees will likely increase with GPT-5 integration
  • Hosting and maintaining a vector database for knowledge retrieval (Explain-Mode).
  • Retrieval-Augmented Generation (RAG) pipelines to blend Cardano-specific data with LLM capabilities.

The budget reflects actual usage costs from our Solana deployment, scaled to the Cardano MVP’s projected load.

           4. API & Infrastructure – 70,000 ADA

Instead of building our own blockchain indexer, we will leverage established Cardano data providers to reduce cost and accelerate delivery.

This allocation covers:

• Koios API subscription and usage costs.
• Blockfrost API subscription and usage costs.
• CardanoScan API usage for supplemental transaction data.
• Uptime monitoring, caching layers, and failover mechanisms for API-dependent modules.
• Twitter API subscription and usage costs for live offchain contextual data.

This ensures reliable, low-latency access to blockchain state without the overhead of custom infra operations.

          5. Design & UX – 50,000 ADA

An exceptional user experience is critical to adoption.

This budget covers:

• Wallet UI/UX design for Fuku AI’s integration in Yoroi and Ctrl.
• Wireframes, prototypes, and user flow diagrams for Explain-Mode.
• Consistency testing to ensure AI integration aligns with wallet brand guidelines.

Our design team will work iteratively with developers to refine UX before final deployment.

                6. Security Audit – 60,000 ADA

Third-party security review is non-negotiable for user trust.

This budget covers:

• Formal audits of all Cardano transaction assembly logic and DEX integration modules.
• Penetration testing of the SDK endpoints and wallet integration flows.
• Verification of CIP-30 signing flows to ensure user custody is never compromised.

We will engage a reputable blockchain security firm with Cardano experience to perform these audits.

       7. Partnerships & Marketing – 80,000 ADA

To drive rapid adoption post-launch, this budget covers:

• Joint marketing campaigns with Yoroi, Ctrl, and integrated DEX partners.
• Live AMAs, tutorials, and launch-day walkthroughs targeting the Cardano community.
• Content creation (video demos, social posts, infographics) to explain the value proposition.

Our approach ensures both developer and end-user audiences are engaged early and consistently.

         8. Contingency (5%) – 40,000 ADA

• A lean but prudent allocation for unforeseen expenses, such as:
  • API cost spikes due to higher-than-expected usage.
  • Additional security or compliance reviews requested by partners.
  • Minor feature adjustments based on early user feedback.

Industry norms recommend 5–10% contingency; we have set this at the lower bound to signal cost discipline.

[Final Pitch] Value for Money

How does the cost of the project represent value for the Cardano ecosystem?

The Fund 14 MVP proposal for Fuku AI on Cardano is designed to deliver maximum ecosystem impact at minimal cost by leveraging our existing architecture, proven product design, and operational experience from our Solana deployment.

Unlike greenfield projects that require multi-year infrastructure buildouts, this phase focuses on integrating directly into Cardano’s most-used wallets and DeFi protocols — ensuring rapid adoption, measurable KPIs, and a direct return to the ecosystem.

								1. Leveraging Proven Architecture

The AI orchestration, transaction handling, Explain-Mode logic, and SDK framework have already been battle-tested in a live production environment, processing over $10M in on-chain volume on Solana.

This allows us to adapt rather than invent — delivering high reliability at reduced development cost.

        2. Using Existing Cardano Data Providers

Instead of building a custom indexing stack, we integrate with Koios, Blockfrost, CardanoScan APIs, and DexHunter for reliable blockchain state and liquidity routing.

This avoids high infrastructure and maintenance expenses while ensuring accuracy and uptime from day one. It will also contribute to the growth of usage for those data providers.

          3. Integration-First Strategy

Embedding AI in Yoroi and Ctrl means immediate exposure to a large, active user base.

Aggregating Minswap, WingRiders, and SundaeSwap through DexHunter improves execution quality for every transaction routed through the AI.

          4. Measurable, Short-Term ROI

The MVP is structured around three milestones in a 9-month timeline, each delivering tangible, user-facing features.

KPIs — including new DeFi users, wallet AI activation rates, transaction volume, and SDK adoption — will be transparently reported at project completion.

          5. Treasury Alignment

We commit to returning 10% of all fees generated from Fuku AI’s Cardano integrations back to the Cardano Treasury.

This creates a self-sustaining feedback loop, where growth in AI usage directly funds further ecosystem development.

Treasury contributions will be calculated and sent quarterly, accompanied by public reports for transparency.

         6. Ecosystem Lift Potential

Even a 0.5% redeployment of staked ADA into active DeFi positions via Fuku AI could add over 120 million ADA in TVL.

This would drive:

• Increased liquidity depth in Cardano DEXs.
• Higher transaction throughput.
• Greater fee revenue for stake pools, protocols, and the network as a whole.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes