To combat the problem of unstable borrowing rates, AlphaGrowth has created BOBBY. A yield chasing Arbitrum vault that optimizes stablecoin yield using a practical mix of vault management, dynamic bonds, and an AI agent, BOBBY is designed to secure long-term deposits that stabilize borrow rates.
With smart contracts developed, $100K deposit incentives committed by Arbitrum, and an OpenZeppelin audit commencing as a result of this post, BOBBY is on track for a valuable launch.
All documentation can be found in the resources section at the end of this post.
Meet BOBBY
BOBBY has been assembled with three components, which are his vault, tokenomics, and an AI agent.
1. The Vault
The vault is the core functionality of $BOBBY, designed to optimize stablecoins while actively chasing the best yield opportunities. It automatically allocates deposits to the Compound market with the highest APR and continuously monitors the yield differences between stablecoin vaults. Using our swap rules, the system evaluates whether to shift funds based on the difference between the current APR and a new, higher APR.
Imagine a vault holding $1M in USDT earning 5.89% APR. The system computes the difference between the new yield and the current yield. If this difference, adjusted recoup parameters, exceeds the threshold, then the vault will trigger a swap to the appropriate USDC or USDC.e vault. This automated process ensures that every dollar is working optimally and that the vault consistently locks in the best possible yield, reinforcing overall market stability.
2. $BOBBY is a Bond
Bonds work in three parts; acquisition, maturity, and liquidation. In our system, bonds are acquired with fixed duration and yield terms, representing the underlying value of the vault’s collateral. When you deposit funds into $BOBBY, you can choose to lock them for anywhere from 1 to 365 days, which converts your deposit into a bond that earns a higher yield compared to holding liquid stable tokens.
Bond prices are determined by the stable collateral value of the vault’s cTokens that sets a floor for the token’s price. We call this, “Risk Free Value.” When $BOBBY’s market cap rises above the Risk Free Value, new bonds can be purchased, locking even more capital into the vault and reinforcing market stability. Conversely, if the market cap dips below this floor, arbitrage opportunities open up through the DEX liquidity pool.
As bonds mature, they unlock, allowing holders to either redeem them at par of the vault’s Risk Free Value or convert them back into $BOBBY tokens to participate in new bonds or liquidity pools. This structure not only rewards long-term deposits but also ensures additional utility and yield when Bonds are unavailable.
3. BOBBY FLESHNER, the AI Agent: Your Compound Companion
The purpose of AI within this project is to make supplying stables on Arbitrum more fun and actionable. The AI does not touch funds. With safety as our top priority, all deposited funds will be managed by the automated vaults.
Robert Leshner has a Based Ghoul Alter Ego, who is the namesake of our project. To honor his DeFi legacy, we trained BOBBY on the Forum Posts and Twitter History of Robert Leshner, and have given him his own twitter account.
The AI is currently active on X where he can engage users with a growing list of approaches. BOBBY can monitor market conditions, help understand bond pricing, and navigate the $BOBBY game. He will also be functional on discord and potentially Telegram (due to recent bot term changes) for 1 on 1 experiences.
Understanding the Bobby Game: Total Value (Actually) Locked
BOBBY can be acquired as a BOND from the vault or a TOKEN from a DEX.
While TOKEN holders of BOBBY will be able to sell their TOKENS instantly, BOND holders have locked their funds for higher yield.
We use the term “Risk Free Value” to describe the stable collateral base of the vault. Essentially, it means that while the price of $BOBBY may fluctuate, the underlying value of the vault’s cTokens ensures the price remains anchored.
When the market cap of $BOBBY exceeds this value, bonds can be purchased—locking in more capital and reinforcing the vault’s strength. Conversely, if the market cap falls below the Risk Free Value, arbitrage opportunities emerge via the DEX liquidity pool, allowing traders to capture the difference.
At any time, $BOBBY tokens can be redeemed at par for the vault’s Risk Free Value, with a 1% fee that is funneled back into the vault.
Strategic Partnerships and Progress
Collaboration is at the core of any new product’s success and we have been fortunate to foster a strong team behind BOBBY. AlphaGrowth developed the tokenomics and overall strategy, while Palomabot.ai handled the code development.
Chainlink’s $25K grant and active marketing support, along with Arbitrum’s $5K development grant and $100K in bond incentives, highlight the strong backing for this project.
Across all channels, the BOBBY teaser on X generated ~50,000 organic views and enabled conversations with larger accounts such as the partners above.
See announcement and listen to our recorded space with Arbitrum.
Roadmap: From Launch to Growth
With smart contracts live and comprehensive documentation available on our GitHub, we now await a thorough OpenZeppelin audit. Due to a pending audit, the official launch date is to be determined.
Compound’s Decentralized Frontend will go live soon, and there will be a Vaults Section, which will be $BOBBY’s new home. At launch, $BOBBY will be available at $0.80, an instant 20% discount to incentivize early minting.
In the event of a successful launch, our goal is to replicate this model across multiple chains and asset classes, creating an ecosystem of constantly stabilized markets due to long term positions with boosted yield.
Next Steps: Open Zeppelin Audit
As discussed during our Compound Developer Community Call and our recent meeting, we are formally requesting an OpenZeppelin audit to validate our smart contracts.
We also request the inclusion of agents and their respective vault pages as part of the existing decentralized front-end audit. WOOF will provide necessary documentation once complete in the coming days.
This audit is critical for ensuring the security and functionality of the system and will build trust as we prepare for the ETH Denver launch.
Please see the resources and contact information linked below to progress as needed.
Resources & Further Reading
Tokenomics, Bonds, and Vault Parameters:
GitHub Repositories:
Frontend Launch and events will be posted to @growcompound.
Final Thoughts and Invitations
We invite each of you to supply some stables into the Vaults, mint $BOBBY, make some memes, and participate in a more interesting way to lend stables on Arbitrum.
If you’ll be at ETH Denver, here’s where and when to expect to hear about BOBBY:
- Feb 25th @ 2:30pm MT: BOBBY x Chainlink x Compound x Arbitrum Space
- Feb 26th @ 10:45am MT: DeFi Dojo DeFi Ai speaking panel
- Feb 27th @ 3-4pm MT: ETH Denver Ai Mini Summit BOBBY DEMO
- March 1st @ 3:25pm MT: Chainlink Lightning House BOBBY Spotlight
For more technical details, audit coordination, or any other questions, please reach out via telegram or X.
Pumped to work together on stabilizing borrow rates while improving incentive mechanisms on Compound v3.