Project Name
VELT AI – Conversational DeFi Lending on Hyperion
Problem Statement
Decentralized lending platforms are often intimidating and inaccessible to everyday users due to complex user interfaces, confusing workflows, and a steep learning curve around collateral management. Many potential users are excluded simply because they lack the technical skills or confidence to interact with DeFi protocols directly.
Solution Overview
VELT AI transforms decentralized lending into a simple, chat-based experience. Powered by the Alith SDK and built on the Hyperion L2, users can lend, borrow, and manage their loans through natural language interactions. Whether via a Telegram bot or a web-based chat interface, users gain intuitive access to DeFi without navigating complicated UIs. Hyperion’s speed and low fees make it the ideal execution layer, while Alith bridges user intent to on-chain actions.
Project Description
VELT AI integrates advanced AI with robust DeFi infrastructure to offer a conversational interface for crypto lending.
Core Features
- Natural Language Lending – Interact with smart contracts using simple phrases like “Lend 10 USDT.”
- Hyperion-Powered Speed – Enjoy seamless transactions thanks to parallel execution and sub-second finality.
- On-Chain Credit Scoring – Borrowing power is assessed based on wallet activity and protocol engagement.
- Real-Time Risk Alerts – Users are notified if their collateral ratio approaches liquidation thresholds.
- Safe, Guided Transactions – Transaction previews ensure clarity and require explicit wallet confirmation.
Technology Stack
- Alith SDK – Natural language intent parsing
- Smart Contracts – Deployed on Hyperion
- Frontend – Built with React + Next.js
- Telegram Bot API – For conversational DeFi interactions
- On-Chain Modules – Power credit scoring and risk tracking
Technical Details
Intent Parsing
Using Alith’s SDK, we extract user intent from commands like “Lend 10 USDT.” These inputs are processed by a middleware layer that maps them to verified smart contract calls via ABIs and pre-defined schemas. Every action is preceded by a confirmation summary — e.g., “You’re about to lend 10 USDT. Confirm?” — to ensure user clarity and control. No transaction executes without a wallet signature.
Why Hyperion?
Hyperion provides:
- Sub-second finality
- Parallel execution
- Low fees
These advantages enable real-time interactions that feel conversational and responsive — essential for chat-based DeFi.
Translating DeFi Complexity
Advanced DeFi concepts (like liquidation thresholds or APY) are simplified through a backend module that tracks on-chain metrics and delivers concise summaries. Examples:
- “Your collateral ratio is 75%. Liquidation occurs at 80%.”
- “If ETH drops by 15%, you risk liquidation.”
The Alith AI communicates these insights clearly, while the core logic is managed on-chain or through verified indexers.
Handling Ambiguity
If user intent is unclear (e.g., “Take some ETH”), the AI requests clarification before proceeding. Every action is previewed and requires explicit wallet approval — ensuring safety in uncertain contexts.
Differentiation from Existing DeFi Platforms
VELT AI is not just a chat-based version of existing protocols like Aave. Its core innovations include:
- On-chain credit scoring for smarter, safer borrowing
- Conversational automation to guide beginners step-by-step
- Real-time alerts on risk metrics via the chat interface
- Hyperion-native execution for unmatched responsiveness
Together, these features deliver a safer and more accessible experience — particularly for users underserved by traditional DeFi platforms.
Hackathon Focus: HyperHack
We’ll showcase:
- Seamless intent-to-transaction flow with Alith
- Lightning-fast lending and borrowing on Hyperion
- Real-time health checks and risk alerts
- Transparent credit scoring logic, explained in plain language
Community Engagement Features
To gamify onboarding and incentivize participation, we’ll implement the following:
Testable Features
- Deposit into the lending pool
- Borrow against collateral
- Use AI chat to perform DeFi actions
- Check loan health/collateral ratio in natural language
Points System
- +10 points – First successful deposit
- +15 points – Borrow using AI chat
- +5 points – Use the health monitoring feature
- +20 points – Invite a friend to try the chatbot
Gamified Experience
- Users level up by completing tasks
- AI chat offers hints, tips, and surprise challenges
- Leaderboard encourages competition and sharing
User Onboarding
- Chat-first experience removes technical friction
- Perfect for crypto-curious or DeFi newcomers
Getting Involved
- GitHub: Codebase to be made public after initial demo
- Community: Telegram and Discord channels launching during hackathon week
- Team Contacts:
- @6ramstone — Smart Contracts / Protocol Lead
- @chiefEbube_ — Frontend / UX Lead