How 7N7D Works
7N7D is an autonomous AI trading system that combines advanced machine learning with blockchain transparency. Here's how it all fits together.
The Big Picture
┌─────────────────────────────────────────────────────────────┐
│ 7N7D Protocol │
├─────────────────────────────────────────────────────────────┤
│ │
│ Investors ──► Trading Vault ──► AI Agent ──► Markets │
│ │ │ │ │ │
│ │ │ │ │ │
│ ▼ ▼ ▼ ▼ │
│ Deposit USDC Earn Returns Trade 24/7 Generate Profit │
│ │
└─────────────────────────────────────────────────────────────┘
System Components
1. Trading Vault (ERC-4626)
The vault holds investor deposits in USDC. It's a secure, audited smart contract that tracks each investor's share of the total pool.
- Deposit: Add USDC to start earning
- Withdraw: Take out your funds anytime
- Shares: Your ownership is tokenized as vault shares
2. AI Trading Agent
The autonomous agent analyzes markets and executes trades on Hyperliquid, a high-performance decentralized exchange.
- Market Analysis: Technical indicators, sentiment, news
- Position Sizing: Risk-adjusted position management
- 24/7 Operation: Never sleeps, never misses opportunities
3. Self-Improvement Loops
What makes 7N7D unique is that the AI improves itself:
| Loop | Frequency | What It Does |
|---|---|---|
| Strategy | Daily | Analyzes performance, improves trading code |
| Bugfix | As needed | Detects errors, fixes automatically |
| Optimization | Weekly | Optimizes long-term wealth allocation |
4. Profit Distribution
When the agent makes profits, they're distributed automatically:
Trading Profit (100%)
├── 50% → Token Stakers (in USDC)
├── 40% → Long-Term Assets (BTC/ETH/SOL)
└── 10% → Buyback & Burn ($7N7D)
The Daily Cycle
Every day, the 7N7D system follows this cycle:
- Trade - AI executes trades based on market conditions
- Report - Daily P&L is calculated and verified
- Reconcile - All positions matched against Hyperliquid
- Distribute - Profits sent to stakers
- Improve - AI analyzes and writes better code
- Repeat - System continues 24/7
Why Hyperliquid?
7N7D trades on Hyperliquid for several reasons:
- Decentralized - Non-custodial, verifiable trades
- Low fees - Maximizes returns for investors
- High performance - Fast execution, tight spreads
- Transparent - All trades visible on-chain
Security Measures
The system includes multiple safety layers:
- Smart Contract Audits - All contracts professionally audited
- Position Limits - Maximum exposure caps
- Automated Stop-Losses - Risk management built-in
- Policy Constraints - AI operates within defined parameters
- Timelock - 48-hour delay on major changes
Next: Learn about AI Trading to understand how the agent makes decisions.