All projects

Watchtower

AI-powered cross-chain fund monitoring with autonomous CRE workflows and CCIP bridging

Risk & Compliance

What it is

Watchtower is a decentralized fund management platform that automates compliance, risk monitoring, reserve verification, and portfolio rebalancing for tokenized funds across multiple EVM chains.
Traditional fund management is manual, siloed, and reactive. Fund managers manually check reserve balances, run compliance screenings one address at a time, and have no real-time risk monitoring. When something goes wrong for example a sanctioned address deposits, reserves dip below threshold, or market risk spikes , they find out too late. None of this works cross-chain either.
Watchtower solves this with four autonomous Chainlink CRE workflows that run on the DON:

  1. Proof of Reserve — Aggregates USDC balances across all chains, verifies on-chain reserves match reported total assets, uploads attestations to Firebase, and updates the ProofOfReserveOracle contract.
  2. Portfolio Health Monitoring — Uses Google Gemini AI to analyze portfolio risk in real-time. Computes TVL-weighted risk scores across chains and updates the RiskOracle. If risk exceeds 85, FundVault automatically pauses deposits.
  3. Compliance Screening — Screens investor addresses against global sanctions lists (OFAC, EU, UN) via Chainalysis KYT API. Updates ComplianceRegistry on all chains so FundVault can block transfers from sanctioned addresses.
  4. Rebalancing Advisor — AI-powered portfolio optimization that reads on-chain positions, analyzes risk exposure, and recommends allocation changes. Can trigger on-chain rebalance transactions across all chains.
    FundVault is an ERC20 tokenized fund registered as a native CCIP token using the burn-and-mint pattern. Shares can be bridged between Sepolia and Base Sepolia via bridgeShares(), enabling one unified fund across multiple chains which are all monitored by the same set of workflows.

How it Works

  • Smart Contracts (Solidity/Foundry): FundVault (ERC20 tokenized vault with CCIP bridge support), ComplianceRegistry, RiskOracle, ProofOfReserveOracle which are deployed on Sepolia and Base Sepolia.
  • CRE Workflows (TypeScript): Four workflows built with @chainlink/cre-sdk using Log Triggers to listen for on-chain events. Each workflow reads multi-chain state via EVMClient, calls external APIs (Chainalysis KYT, Google Gemini AI), stores reports on Firebase Firestore, and writes results back on-chain via CRE's consensus-verified report system.
  • CCIP Integration: FundVault implements getCCIPAdmin(), mint(), burn(), and grantMintAndBurnRoles() for BurnMintTokenPool compatibility. Registered via TokenAdminRegistry on both chains with cross-chain pool configuration.
  • Frontend: Dashboard with real-time on-chain data , pages for portfolio overview, reserves, compliance, rebalancing, and cross-chain bridging. Deployed on Vercel.

Links

Created by

  • Alfred Olumide Adenigba