Building a DeFi Agent
A comprehensive guide to building an AI-powered DeFi agent using BNB-Chain-MCP.
Overview
This guide walks you through creating a fully functional DeFi agent that can:
- Monitor market conditions
- Analyze opportunities
- Execute trades safely
- Manage portfolios
- Assess risks
Architecture
┌─────────────────────────────────────────────────────┐
│ DeFi Agent │
├─────────────────────────────────────────────────────┤
│ ┌─────────────┐ ┌─────────────┐ ┌─────────────┐ │
│ │ Market │ │ Risk │ │ Execution │ │
│ │ Analyzer │ │ Manager │ │ Engine │ │
│ └──────┬──────┘ └──────┬──────┘ └──────┬──────┘ │
│ │ │ │ │
│ └────────────────┼────────────────┘ │
│ │ │
│ ┌───────────┴───────────┐ │
│ │ Universal Crypto │ │
│ │ MCP Server │ │
│ └───────────┬───────────┘ │
└──────────────────────────┼──────────────────────────┘
│
┌─────────────────┼─────────────────┐
│ │ │
┌────┴────┐ ┌────┴────┐ ┌────┴────┐
│Ethereum │ │ Arbitrum│ │ BSC │
└─────────┘ └─────────┘ └─────────┘
Step 1: Project Setup
Initialize Project
Environment Configuration
Create .env:
Project Structure
defi-agent/
├── src/
│ ├── agent.ts
│ ├── mcp-client.ts
│ ├── strategies/
│ │ ├── market-analyzer.ts
│ │ ├── yield-optimizer.ts
│ │ └── risk-manager.ts
│ └── utils/
│ ├── formatters.ts
│ └── validators.ts
├── config/
│ └── settings.json
├── .env
└── package.json
Step 2: MCP Client Setup
Basic MCP Client
// src/mcp-client.ts
import { spawn, ChildProcess } from 'child_process';
import * as readline from 'readline';
interface MCPRequest {
jsonrpc: '2.0';
id: number;
method: string;
params: Record<string, any>;
}
export class MCPClient {
private process: ChildProcess | null = null;
private requestId = 0;
private pending = new Map<number, {
resolve: (value: any) => void;
reject: (error: Error) => void;
}>();
private initialized = false;
async connect(): Promise<void> {
return new Promise((resolve, reject) => {
this.process = spawn('npx', ['-y', '@nirholas/bnb-chain-mcp@latest'], {
env: {
...process.env,
PRIVATE_KEY: process.env.PRIVATE_KEY
},
stdio: ['pipe', 'pipe', 'pipe']
});
const rl = readline.createInterface({
input: this.process.stdout!,
crlfDelay: Infinity
});
rl.on('line', (line) => {
try {
const response = JSON.parse(line);
const pending = this.pending.get(response.id);
if (pending) {
this.pending.delete(response.id);
if (response.error) {
pending.reject(new Error(response.error.message));
} else {
pending.resolve(response.result);
}
}
} catch (e) {
// Handle parse errors
}
});
this.process.stderr?.on('data', (data) => {
console.error('MCP Error:', data.toString());
});
// Initialize connection
this.sendRequest('initialize', {
protocolVersion: '2024-11-05',
capabilities: {},
clientInfo: { name: 'defi-agent', version: '1.0.0' }
}).then(() => {
this.sendNotification('notifications/initialized', {});
this.initialized = true;
resolve();
}).catch(reject);
});
}
private sendRequest(method: string, params: Record<string, any>): Promise<any> {
return new Promise((resolve, reject) => {
const id = ++this.requestId;
const request: MCPRequest = {
jsonrpc: '2.0',
id,
method,
params
};
this.pending.set(id, { resolve, reject });
this.process?.stdin?.write(JSON.stringify(request) + '\n');
});
}
private sendNotification(method: string, params: Record<string, any>): void {
this.process?.stdin?.write(JSON.stringify({
jsonrpc: '2.0',
method,
params
}) + '\n');
}
async callTool(name: string, args: Record<string, any> = {}): Promise<any> {
if (!this.initialized) {
throw new Error('MCP client not initialized');
}
const result = await this.sendRequest('tools/call', {
name,
arguments: args
});
const content = result?.content || [];
if (content[0]?.type === 'text') {
try {
return JSON.parse(content[0].text);
} catch {
return content[0].text;
}
}
return result;
}
async listTools(): Promise<any[]> {
const result = await this.sendRequest('tools/list', {});
return result?.tools || [];
}
disconnect(): void {
if (this.process) {
this.process.kill();
this.process = null;
}
}
}
Step 3: Market Analyzer
// src/strategies/market-analyzer.ts
import { MCPClient } from '../mcp-client';
export interface MarketCondition {
sentiment: 'bullish' | 'bearish' | 'neutral';
fearGreedIndex: number;
btcDominance: number;
totalMarketCap: number;
defiTvl: number;
gasConditions: 'low' | 'medium' | 'high';
recommendations: string[];
}
export class MarketAnalyzer {
constructor(private mcp: MCPClient) {}
async getMarketCondition(): Promise<MarketCondition> {
// Gather market data in parallel
const [
fearGreed,
btcData,
globalData,
defiTvl,
gasPrice
] = await Promise.all([
this.mcp.callTool('market_get_fear_greed_index'),
this.mcp.callTool('market_get_price', { coinId: 'bitcoin' }),
this.mcp.callTool('market_get_global_data'),
this.mcp.callTool('defi_get_total_tvl'),
this.mcp.callTool('gas_get_gas_price', { network: 'ethereum' })
]);
// Analyze sentiment
const sentiment = this.analyzeSentiment(fearGreed.value, btcData.priceChange24h);
// Analyze gas conditions
const gasConditions = this.analyzeGas(gasPrice.gasPrice);
// Generate recommendations
const recommendations = this.generateRecommendations({
sentiment,
fearGreed: fearGreed.value,
gasConditions
});
return {
sentiment,
fearGreedIndex: fearGreed.value,
btcDominance: globalData.btcDominance,
totalMarketCap: globalData.totalMarketCap,
defiTvl: defiTvl.tvl,
gasConditions,
recommendations
};
}
private analyzeSentiment(
fearGreed: number,
btcChange: number
): 'bullish' | 'bearish' | 'neutral' {
if (fearGreed > 60 && btcChange > 0) return 'bullish';
if (fearGreed < 40 && btcChange < 0) return 'bearish';
return 'neutral';
}
private analyzeGas(gwei: number): 'low' | 'medium' | 'high' {
if (gwei < 30) return 'low';
if (gwei < 80) return 'medium';
return 'high';
}
private generateRecommendations(data: {
sentiment: string;
fearGreed: number;
gasConditions: string;
}): string[] {
const recommendations: string[] = [];
if (data.fearGreed < 25) {
recommendations.push('Extreme fear - potential buying opportunity');
} else if (data.fearGreed > 75) {
recommendations.push('Extreme greed - consider taking profits');
}
if (data.gasConditions === 'high') {
recommendations.push('Gas prices elevated - delay non-urgent transactions');
} else if (data.gasConditions === 'low') {
recommendations.push('Low gas - good time for on-chain operations');
}
return recommendations;
}
async findOpportunities(
tokens: string[],
minPriceChange: number = -10
): Promise<any[]> {
const opportunities: any[] = [];
for (const token of tokens) {
try {
const [price, security] = await Promise.all([
this.mcp.callTool('market_get_price', { coinId: token }),
this.mcp.callTool('security_check_token', {
tokenAddress: token,
network: 'ethereum'
})
]);
// Look for dips that might be opportunities
if (price.priceChange24h <= minPriceChange && security.isSecure) {
opportunities.push({
token,
price: price.price,
change24h: price.priceChange24h,
securityScore: security.score,
signal: 'potential_dip_buy'
});
}
} catch (e) {
// Skip tokens that fail
}
}
return opportunities.sort((a, b) => a.change24h - b.change24h);
}
}
Step 4: Risk Manager
// src/strategies/risk-manager.ts
import { MCPClient } from '../mcp-client';
export interface RiskAssessment {
overallRisk: 'low' | 'medium' | 'high' | 'critical';
score: number;
factors: RiskFactor[];
approved: boolean;
warnings: string[];
}
interface RiskFactor {
name: string;
risk: 'low' | 'medium' | 'high';
weight: number;
details: string;
}
export class RiskManager {
private riskLimits = {
maxPositionSize: 0.2, // 20% of portfolio
maxSlippage: 0.03, // 3%
minSecurityScore: 60, // GoPlus score
minHealthFactor: 1.5, // For lending
maxGasGwei: 100
};
constructor(private mcp: MCPClient) {}
async assessTokenRisk(
tokenAddress: string,
network: string = 'ethereum'
): Promise<RiskAssessment> {
const factors: RiskFactor[] = [];
const warnings: string[] = [];
// Security analysis
const security = await this.mcp.callTool('security_check_token', {
tokenAddress,
network
});
factors.push({
name: 'Smart Contract Security',
risk: security.score >= 80 ? 'low' : security.score >= 60 ? 'medium' : 'high',
weight: 0.4,
details: `GoPlus score: ${security.score}/100`
});
if (security.isHoneypot) {
warnings.push('⚠️ HONEYPOT DETECTED - DO NOT TRADE');
factors.push({
name: 'Honeypot',
risk: 'high',
weight: 1.0,
details: 'Token cannot be sold'
});
}
if (security.hasOwnershipRisk) {
warnings.push('Owner can modify token - centralization risk');
factors.push({
name: 'Ownership Risk',
risk: 'medium',
weight: 0.2,
details: 'Owner has elevated privileges'
});
}
// Liquidity analysis
try {
const liquidity = await this.mcp.callTool('dex_get_liquidity', {
tokenAddress,
network
});
factors.push({
name: 'Liquidity',
risk: liquidity.totalLiquidity > 1000000 ? 'low' :
liquidity.totalLiquidity > 100000 ? 'medium' : 'high',
weight: 0.2,
details: `Total liquidity: $${liquidity.totalLiquidity.toLocaleString()}`
});
if (liquidity.totalLiquidity < 50000) {
warnings.push('Very low liquidity - high slippage risk');
}
} catch (e) {
factors.push({
name: 'Liquidity',
risk: 'high',
weight: 0.2,
details: 'Unable to determine liquidity'
});
}
return this.calculateOverallRisk(factors, warnings);
}
async assessTradeRisk(
tokenIn: string,
tokenOut: string,
amount: string,
network: string = 'ethereum'
): Promise<RiskAssessment> {
const factors: RiskFactor[] = [];
const warnings: string[] = [];
// Get quote to check slippage
const quote = await this.mcp.callTool('swap_get_quote', {
tokenIn,
tokenOut,
amountIn: amount,
network
});
const priceImpact = parseFloat(quote.priceImpact || '0');
factors.push({
name: 'Price Impact',
risk: priceImpact < 1 ? 'low' : priceImpact < 3 ? 'medium' : 'high',
weight: 0.3,
details: `Expected impact: ${priceImpact.toFixed(2)}%`
});
if (priceImpact > this.riskLimits.maxSlippage * 100) {
warnings.push(`High price impact (${priceImpact.toFixed(2)}%) - consider smaller trade`);
}
// Check gas conditions
const gas = await this.mcp.callTool('gas_get_gas_price', { network });
factors.push({
name: 'Gas Cost',
risk: gas.gasPrice < 50 ? 'low' : gas.gasPrice < 100 ? 'medium' : 'high',
weight: 0.2,
details: `Current gas: ${gas.gasPrice} Gwei`
});
if (gas.gasPrice > this.riskLimits.maxGasGwei) {
warnings.push('Gas prices are elevated - consider waiting');
}
// Check token security
const tokenRisk = await this.assessTokenRisk(tokenOut, network);
factors.push(...tokenRisk.factors.map(f => ({ ...f, weight: f.weight * 0.5 })));
warnings.push(...tokenRisk.warnings);
return this.calculateOverallRisk(factors, warnings);
}
private calculateOverallRisk(
factors: RiskFactor[],
warnings: string[]
): RiskAssessment {
// Calculate weighted score
let totalWeight = 0;
let weightedScore = 0;
for (const factor of factors) {
const riskScore = factor.risk === 'low' ? 0 : factor.risk === 'medium' ? 50 : 100;
weightedScore += riskScore * factor.weight;
totalWeight += factor.weight;
}
const score = totalWeight > 0 ? weightedScore / totalWeight : 50;
// Determine overall risk level
let overallRisk: 'low' | 'medium' | 'high' | 'critical';
if (score < 25) overallRisk = 'low';
else if (score < 50) overallRisk = 'medium';
else if (score < 75) overallRisk = 'high';
else overallRisk = 'critical';
// Critical warnings override
if (warnings.some(w => w.includes('HONEYPOT'))) {
overallRisk = 'critical';
}
return {
overallRisk,
score: 100 - score, // Convert to "safety" score
factors,
approved: overallRisk === 'low' || overallRisk === 'medium',
warnings
};
}
}
Step 5: Execution Engine
// src/strategies/execution-engine.ts
import { MCPClient } from '../mcp-client';
import { RiskManager, RiskAssessment } from './risk-manager';
export interface TradeResult {
success: boolean;
transactionHash?: string;
error?: string;
details: any;
}
export class ExecutionEngine {
constructor(
private mcp: MCPClient,
private riskManager: RiskManager
) {}
async executeSwap(
tokenIn: string,
tokenOut: string,
amount: string,
network: string = 'ethereum',
options: {
maxSlippage?: number;
skipRiskCheck?: boolean;
} = {}
): Promise<TradeResult> {
const { maxSlippage = 1, skipRiskCheck = false } = options;
// Risk assessment
if (!skipRiskCheck) {
const risk = await this.riskManager.assessTradeRisk(
tokenIn,
tokenOut,
amount,
network
);
if (!risk.approved) {
return {
success: false,
error: `Trade rejected: ${risk.overallRisk} risk`,
details: { riskAssessment: risk }
};
}
console.log(`Risk assessment: ${risk.overallRisk} (score: ${risk.score})`);
risk.warnings.forEach(w => console.log(`⚠️ ${w}`));
}
// Get quote first
const quote = await this.mcp.callTool('swap_get_quote', {
tokenIn,
tokenOut,
amountIn: amount,
network,
slippage: maxSlippage
});
console.log(`Quote received:`);
console.log(` Input: ${amount} ${tokenIn}`);
console.log(` Output: ${quote.amountOut} ${tokenOut}`);
console.log(` Price impact: ${quote.priceImpact}%`);
console.log(` Gas estimate: ${quote.gasEstimate}`);
// Execute swap
try {
const result = await this.mcp.callTool('swap_execute_swap', {
tokenIn,
tokenOut,
amountIn: amount,
minAmountOut: quote.minAmountOut,
network,
slippage: maxSlippage
});
return {
success: true,
transactionHash: result.transactionHash,
details: {
amountIn: amount,
amountOut: result.amountOut,
priceImpact: quote.priceImpact,
gasUsed: result.gasUsed
}
};
} catch (error: any) {
return {
success: false,
error: error.message,
details: { quote }
};
}
}
async executeYieldStrategy(
protocol: string,
pool: string,
amount: string,
network: string = 'ethereum'
): Promise<TradeResult> {
// Check pool safety
const poolInfo = await this.mcp.callTool('staking_get_pool_info', {
protocol,
pool,
network
});
console.log(`Pool info:`);
console.log(` APY: ${poolInfo.apy}%`);
console.log(` TVL: $${poolInfo.tvl.toLocaleString()}`);
// Stake
try {
const result = await this.mcp.callTool('staking_stake', {
protocol,
pool,
amount,
network
});
return {
success: true,
transactionHash: result.transactionHash,
details: {
staked: amount,
expectedApy: poolInfo.apy,
received: result.received
}
};
} catch (error: any) {
return {
success: false,
error: error.message,
details: { poolInfo }
};
}
}
}
Step 6: Main Agent
// src/agent.ts
import { MCPClient } from './mcp-client';
import { MarketAnalyzer } from './strategies/market-analyzer';
import { RiskManager } from './strategies/risk-manager';
import { ExecutionEngine } from './strategies/execution-engine';
import 'dotenv/config';
class DeFiAgent {
private mcp: MCPClient;
private marketAnalyzer: MarketAnalyzer;
private riskManager: RiskManager;
private executionEngine: ExecutionEngine;
constructor() {
this.mcp = new MCPClient();
}
async initialize(): Promise<void> {
console.log('Initializing DeFi Agent...');
await this.mcp.connect();
this.marketAnalyzer = new MarketAnalyzer(this.mcp);
this.riskManager = new RiskManager(this.mcp);
this.executionEngine = new ExecutionEngine(this.mcp, this.riskManager);
console.log('DeFi Agent ready!');
}
async analyzeMarket(): Promise<void> {
console.log('\n📊 Analyzing market conditions...\n');
const condition = await this.marketAnalyzer.getMarketCondition();
console.log(`Market Sentiment: ${condition.sentiment.toUpperCase()}`);
console.log(`Fear & Greed Index: ${condition.fearGreedIndex}`);
console.log(`BTC Dominance: ${condition.btcDominance.toFixed(1)}%`);
console.log(`Total Market Cap: $${(condition.totalMarketCap / 1e12).toFixed(2)}T`);
console.log(`DeFi TVL: $${(condition.defiTvl / 1e9).toFixed(2)}B`);
console.log(`Gas Conditions: ${condition.gasConditions}`);
console.log('\nRecommendations:');
condition.recommendations.forEach(r => console.log(` • ${r}`));
}
async findYieldOpportunities(
token: string,
network: string = 'arbitrum'
): Promise<void> {
console.log(`\n🔍 Finding yield opportunities for ${token} on ${network}...\n`);
const options = await this.mcp.callTool('staking_get_staking_options', {
network,
token
});
console.log('Available opportunities:');
for (const opt of options.options.slice(0, 5)) {
console.log(`\n ${opt.protocol} - ${opt.pool}`);
console.log(` APY: ${opt.apy}%`);
console.log(` TVL: $${(opt.tvl / 1e6).toFixed(2)}M`);
console.log(` Type: ${opt.type}`);
}
}
async checkPortfolio(address: string): Promise<void> {
console.log(`\n💼 Checking portfolio for ${address.slice(0, 8)}...\n`);
const networks = ['ethereum', 'arbitrum', 'polygon', 'bsc'];
let totalValue = 0;
for (const network of networks) {
const balance = await this.mcp.callTool('wallet_get_balance', {
address,
network
});
const tokens = await this.mcp.callTool('wallet_get_token_balances', {
address,
network
});
if (tokens.totalValueUsd > 0) {
console.log(`${network.toUpperCase()}:`);
console.log(` Native: ${balance.balance} ${balance.symbol}`);
console.log(` Tokens: $${tokens.totalValueUsd.toLocaleString()}`);
totalValue += tokens.totalValueUsd;
}
}
console.log(`\nTotal Portfolio Value: $${totalValue.toLocaleString()}`);
}
async executeTrade(
tokenIn: string,
tokenOut: string,
amount: string,
network: string = 'arbitrum'
): Promise<void> {
console.log(`\n🔄 Executing swap: ${amount} ${tokenIn} -> ${tokenOut}...\n`);
const result = await this.executionEngine.executeSwap(
tokenIn,
tokenOut,
amount,
network
);
if (result.success) {
console.log('✅ Swap successful!');
console.log(` TX: ${result.transactionHash}`);
console.log(` Received: ${result.details.amountOut}`);
} else {
console.log('❌ Swap failed!');
console.log(` Error: ${result.error}`);
}
}
async shutdown(): Promise<void> {
console.log('\nShutting down DeFi Agent...');
this.mcp.disconnect();
}
}
// Main execution
async function main() {
const agent = new DeFiAgent();
try {
await agent.initialize();
// Example workflow
await agent.analyzeMarket();
await agent.findYieldOpportunities('USDC', 'arbitrum');
// Check portfolio (replace with your address)
// await agent.checkPortfolio('0x...');
// Execute trade (uncomment when ready)
// await agent.executeTrade('USDC', 'WETH', '100', 'arbitrum');
} finally {
await agent.shutdown();
}
}
main().catch(console.error);
Step 7: Running the Agent
Build & Run
Example Output
Initializing DeFi Agent...
DeFi Agent ready!
📊 Analyzing market conditions...
Market Sentiment: NEUTRAL
Fear & Greed Index: 52
BTC Dominance: 51.2%
Total Market Cap: $2.45T
DeFi TVL: $89.50B
Gas Conditions: low
Recommendations:
• Low gas - good time for on-chain operations
🔍 Finding yield opportunities for USDC on arbitrum...
Available opportunities:
Aave - USDC Supply
APY: 3.85%
TVL: $425.00M
Type: lending
GMX - GLP
APY: 12.50%
TVL: $285.00M
Type: yield-farming
Shutting down DeFi Agent...
Advanced Features
Automated Monitoring Loop
async function monitorLoop(agent: DeFiAgent, intervalMs: number = 60000) {
while (true) {
try {
await agent.analyzeMarket();
// Add custom logic here
} catch (error) {
console.error('Monitor error:', error);
}
await new Promise(resolve => setTimeout(resolve, intervalMs));
}
}
Alert System
class AlertManager {
async checkPriceAlerts(
mcp: MCPClient,
alerts: { token: string; above?: number; below?: number }[]
): Promise<void> {
for (const alert of alerts) {
const price = await mcp.callTool('market_get_price', {
coinId: alert.token
});
if (alert.above && price.price > alert.above) {
console.log(`🔔 ${alert.token} above $${alert.above}: $${price.price}`);
}
if (alert.below && price.price < alert.below) {
console.log(`🔔 ${alert.token} below $${alert.below}: $${price.price}`);
}
}
}
}
Best Practices
- Always assess risk before executing trades
- Use testnets for development and testing
- Implement rate limiting for API calls
- Log all operations for debugging and auditing
- Monitor health factors for lending positions
- Set stop-losses for automated trading
- Keep private keys secure - use hardware wallets for production
Next Steps
- Monitoring Protocol Guide - Track protocol health
- Yield Optimization Guide - Maximize returns
- API Reference - Complete tool documentation