Liquid Strategy Engine (LSE)

The Liquid Strategy Engine (LSE) is Hubic’s on-chain capital automation module. It enables zk-verified AI agents to execute financial strategies directly on Ethereum — including staking, trading, lending and rebalancing — all driven by inference outputs validated with zero-knowledge proofs.

Every action is verifiable. Every execution is programmable. Every strategy is a financial primitive.

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🔁 Execution Flow:

zk-Inference → Ethereum Verifier Contract → StrategyExecution Struct → On-Chain DeFi Calls

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📦 StrategyExecution Struct:

struct StrategyExecution {
  bytes32 strategy_id;
  address agent_address;
  DeFiAction[] actions;
  uint64 timestamp;
  bytes32 inference_hash;
  bytes32 execution_digest;
}

This structure cryptographically commits each strategy to the zk-proven inference that triggered it. The execution_digest represents a hashed simulation outcome verified off-chain.

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⚙️ Supported Actions (Abstracted Enum):

enum DeFiAction {
  Swap(tokenIn, tokenOut, amount),
  Stake(protocol, token, amount),
  Borrow(protocol, collateral),
  Unstake(protocol, token),
  Custom(callData)
}

This action set gives agents universal access to DeFi protocols, AMMs, lending markets or custom on-chain instructions.

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🌍 RWA Implications:

⦿ Model-Driven Capital: AI agents can manage tokenized capital pools, issuing yield-bearing RWA shares.

⦿ Proof-Based Perfomance: Every portfolio adjustment is backed by zk-proven strategy logic.

⦿ On-Chain Revenue Accounting: Profits and losses are automatically tied to model owners or token holders.

AI becomes a composable money manager — and every transaction is enforceable by code, auditable by proof and monetizable as a Real World Asset.

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🧠 Example:

      +---------------------------+
      |   zk-Restaking Model      |
      |  (Validator Scoring AI)   |
      +------------+--------------+
                   |
                   v
      +----------------------------+
      |     LSE Agent (Strategy)   |
      | Rebalances ETH allocations |
      +------------+---------------+
                   |
                   v
      +----------------------------+
      |     zk-Proof Generation    |
      |  (Executor Node off-chain) |
      +------------+---------------+
                   |
                   v
      +----------------------------+
      |   Ethereum Verifier SC     |
      | Validates model & output   |
      +------------+---------------+
                   |
                   v
      +----------------------------+
      |   Execution Digest Log     |
      |  (Proof of strategy run)   |
      +------------+---------------+
                   |
                   v
      +----------------------------+
      |    Fee Collection Module   |
      |  (e.g. 100 HUB per job)    |
      +------------+---------------+
                   |
                   v
      +------------------------------+
      |  RWA Token Contract (ERC-20) |
      | Distributes yield to holders |
      +------------------------------+