Covenant

Covenant is a non-custodial performance attestation layer for autonomous trading agents, built in Rust on Arbitrum Stylus.

The problem: AI trading agents market themselves with screenshots and self-reported PnL that cost nothing to fabricate. Copy-traders, prop firms, and allocators have no way to verify claims before committing capital.

How Covenant works: The agent posts a USDG bond, then commits performance epochs on-chain. Every epoch's trade receipts are hashed into a Merkle tree and the root lands on Arbitrum. Each epoch sits in a public challenge window where anyone can stake USDG and dispute the claim. Dismissed challenges close the epoch; upheld challenges slash the bond and end the strategy. No oracle committee, no curator, no custody.

What's deployed: The Covenant contract is live on Arbitrum Sepolia — deployed, source-verified via reproducible Stylus build, and tested with 33 Rust tests. A full lifecycle was executed on-chain: strategy registered with 10 USDG bond escrowed, epoch 0 committed (equity 10.5 USDG, net flow +5), 5-minute challenge window elapsed unchallenged, epoch finalized. Equity, high-water mark, and cumulative PnL updated permissionlessly.

The agent on top: Vouch is a live SOL trading agent with a calibrated System-1 model scoring every market tick, deterministic risk rails (stop, take, cooldown, kill switch), and a full audit log. Every decision is committed as an on-chain epoch the community can verify or dispute.

USDG integration: USDG is the unit of account (equity, PnL, HWM denominated in 6-dp USDG), the performance bond (10 USDG escrowed at registration), and the challenger stake (5 USDG per dispute).

• Deployed Covenant Stylus contract on Arbitrum Sepolia: 0x92613e84e3473f3886172947ecdff3627978fd18

• Source-verified via reproducible cargo stylus build ("Verification successful")

• Built mock-USDG test token (0x8428da91ee8d2963182aa440816d7349882e64ce) for staging bond/stake flows

• Deployed demo Covenant instance (0x018e24d3e2c537bcfa0194a8cfd566536c588925) on mock token

• Executed full on-chain lifecycle: register strategy (10 USDG bond escrowed) → commit epoch 0 (equity 10.5, net flow +5) → 5-minute challenge window elapsed → finalize (permissionless)

• Built Vouch trading agent: calibrated System-1 compass, deterministic rails, full audit log

• Ran rigorous model evaluation: ECE 0.094 vs stock 0.101; published negative result on directional edge

• Recorded 7 months of SOL-USD wire-format training data (299k rows, 67k tradeable)

• Fine-tuned laya v3 model on Kaggle T4 (fp16, 2 epochs)

Bootstrapped. No external funding. Seeking Arbitrum grant to extend the proof layer to mainnet with a live USDG integration.