Kabon is an AI treasury copilot for Arbitrum that helps users discover, evaluate, and allocate capital across fragmented DeFi and tokenized asset opportunities. By combining portfolio analysis, protocol intelligence, risk assessment, and policy-controlled execution, Kabon transforms scattered investment options into clear, actionable decisions.

Under the hood, users deposit supported assets into ERC-4626 vaults, receive vault shares representing their positions, and access AI-guided recommendations for allocation, risk management, and withdrawals. Approved strategy adapters allow vaults to deploy liquidity into whitelisted protocols while maintaining clear controls over execution and liquidity.

Product Model

Kabon is built around one vault per supported asset:

1. Users deposit a supported asset into a vault.

2. The vault mints ERC-4626 shares to represent the user’s position.

3. Approved vault operators can allocate idle liquidity into whitelisted strategy adapters.

4. Users withdraw by redeeming shares for underlying assets.

5. If idle liquidity is insufficient, the vault recalls liquidity from strategies through a configured withdrawal queue.

This keeps execution vault-mediated rather than requiring users to enter and exit each protocol individually. Kabon recommends and explains compliant allocation routes, while approved vault flows and whitelisted adapters handle protocol-specific execution.

AI Layer

Kabon uses AI as a treasury copilot rather than an autonomous custodian. The AI layer helps users evaluate vault allocation routes by combining live protocol data, user portfolio context, risk preferences, liquidity conditions, and vault policy constraints.

For example: a user deposits USDC → Kabon surfaces available routes like Aave V3, shows APY, flags liquidity depth, and explains the recommended allocation in plain language.

The AI experience is action-oriented, not conversational. Users click Analyze on any deposit-ready asset and Kabon runs a structured agent plan: reading wallet and vault state, applying the selected policy (Conservative, Balanced, or Yield), checking approved routes, and surfacing a recommendation with APY, next action, and asset decisions all without moving funds.

AI recommendations are advisory. They do not bypass vault controls, independently move user funds, or execute outside the approved contract and adapter model.

Robinhood Chain / RWA Expansion

Kabon currently includes Robinhood Chain testnet support as an expansion path for tokenized asset and RWA workflows. The future integration extends Kabon’s policy engine beyond DeFi yield into tokenized real-world assets, allowing users to view RWA balances, understand exposure, compare liquidity and risk, and receive AI-guided portfolio recommendations across DeFi routes and tokenized assets. Execution would remain constrained by supported assets, configured vaults, and whitelisted adapters.

During the hackathon, Kabon went from just a concept to a fully functional deposit-to-yield flow on Arbitrum Sepolia including a live ERC-4626 vault, a USDC Aave V3 strategy adapter, a Next.js frontend for deposits and opportunity analysis, and a The Graph subgraph for vault activity indexing

Live Deployment - Arbitrum Sepolia

• Vault proxy: 0x23d80c8c231d7bf671ac54cd5854728535063254

• Vault implementation: 0x219ccc99ab55c001f9c48cec3740d6a64518bd72

• Aave V3 strategy adapter for USDC: 0xC9d2E20859020375c8C7517464A2Ee890Ff0864F

• Aave V3 Pool: 0xBfC91D59fdAA134A4ED45f7B584cAf96D7792Eff

• Aave V3 USDC aToken: 0x460b97BD498E1157530AEb3086301d5225b91216

Explorer links:

• Vault proxy: https://sepolia.arbiscan.io/address/0x23d80c8c231d7bf671ac54cd5854728535063254

• Vault implementation: https://sepolia.arbiscan.io/address/0x219ccc99ab55c001f9c48cec3740d6a64518bd72

• Aave strategy adapter: https://sepolia.arbiscan.io/address/0xC9d2E20859020375c8C7517464A2Ee890Ff0864F

• Whitelist transaction: https://sepolia.arbiscan.io/tx/0xbdb850cd11f45772e672f410862b444631f5e787d8e750220eaa776d9f92f2ba

Repository

kabon/
  contracts/   Hardhat 3 smart contracts, proxy deployment modules, scripts, and tests
  web/         Next.js frontend, wallet integration, and app-facing API routes
  indexers/    The Graph subgraph for vault event indexing

• contracts: vault contracts, deployment scripts, and test coverage

• web: product interface, wallet flows, recommendations, and market data routes

• indexers: subgraph for historical and real-time vault activity

Web Application

The frontend workspace includes:

• wallet-aware dashboard and deposit experience

• Reown AppKit wallet integration

• Arbitrum protocol and opportunity data

• recommendation engine with allocation rationale and risk framing

• Robinhood Chain testnet wallet support

• tokenized-equity pricing and chart history via Polygon / Massive when configured

• protocol explorer, activity, and withdrawal surfaces
  

Indexer

The indexer workspace contains a The Graph subgraph for vault activity:

• tracks Deposit, Withdraw, StrategyAllocated, StrategyRecalled, StrategyWhitelisted, and WithdrawalQueueUpdated events

• provides a GraphQL API for historical and real-time vault activity

• supports frontend activity history and analytics

Live endpoints:

• Query URL: https://api.studio.thegraph.com/query/1749198/kabon-vault/v0.0.1

• Studio URL: https://thegraph.com/studio/subgraph/kabon-vault

Smart Contracts

The contracts workspace includes:

• upgradeable ERC-4626 vault architecture

• owner-managed strategy whitelisting and withdrawal queue controls

• proxy deployment through Hardhat Ignition and OpenZeppelin transparent proxies

• reentrancy protections on vault entrypoints and strategy callbacks

• protections against fee-on-transfer assets and adapter misreporting

• tests covering deposits, withdrawals, upgrades, strategy accounting, unwind behavior, and administrative controls

Test Coverage

Kabon includes a Hardhat 3 / Viem contract test suite focused on vault correctness, upgrade safety, strategy accounting, and adversarial adapter behavior.

The test suite covers:

• proxy-backed ERC-4626 vault deployment through Hardhat Ignition

• deposits, withdrawals, share minting, and redeem behavior

• owner-managed deployment of idle assets into whitelisted strategies

• rejection of unwhitelisted strategy routes

• withdrawal unwinds when idle liquidity is insufficient

• configured withdrawal queue ordering across strategies

• unwind fee behavior, including fee-free instant withdrawals

• strategy accounting sync for gains and realized losses

• requirement that realized strategy losses can only be synced while paused

• pause behavior blocking fresh deposits

• reentrancy protection during strategy deployment and withdrawal callbacks

• transparent proxy upgrades with storage continuity checks

• dedicated Ignition upgrade module behavior

• initializer locking on the implementation contract

• capped unwind fee configuration

• rejection of fee-on-transfer / short-receipt asset behavior

• rejection of adapters that misreport deployed assets

• rejection of adapters that misreport recalled assets

• two-step ownership transfer and disabled ownership renounce

Tests can be run with:

cd contracts

npx hardhat test

Security Posture

The vault layer includes protections for several common failure modes:

• initializer locking for the upgradeable implementation

• non-reentrant deposit, mint, withdraw, redeem, deploy, recall, and sync flows

• rejection of short-receipt asset transfers during deposits and strategy deployment

• rejection of adapters that misreport recalled or deployed asset amounts

• two-step ownership transfers

• disabled ownership renounce to avoid orphaning vault controls

• pause requirement before syncing a realized strategy loss into vault accounting

Strategy adapters remain part of the trust boundary and will be reviewed independently before production use.