Faktory Protocol

Autonomous AI Treasury Agent for B2B Commerce on Cronos

Faktory is an AI-native treasury management system that transforms how businesses handle invoices. When you create an invoice, our autonomous agent takes over: tokenizing it as a privacy-preserving NFT, deploying capital to yield strategies, and settling payments via x402 rails. It's the first AI treasury agent for Web3 businesses on the Cronos ecosystem.

Live Demo · Built for Cronos x402 PayTech Hackathon

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x402: Agentic Finance in Action

Faktory showcases the x402 vision of autonomous financial agents:

• AI Agent Monitors 24/7 — Continuously analyzes invoice health, risk scores, and yield opportunities
• Autonomous Strategy Recommendations — Agent evaluates Conservative vs Aggressive yield strategies based on invoice due dates and payment probability
• Human-in-the-Loop — Auto-executes only above 70% confidence; user approves lower-confidence decisions
• x402 Payment Settlement — Clients pay invoices directly via smart contract. Machines paying machines.

This is agentic finance infrastructure: machines handling real financial decisions autonomously.

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Cronos Ecosystem Integration

Built natively for the Cronos ecosystem:

• x402 Payment Rails — Full implementation of x402 on-chain invoice settlement
• Cronos EVM Testnet — Live deployment on Chain ID 338
• Crypto.com Ecosystem Ready — Architecture supports Crypto.com Market Data MCP integration
• Pyth Network Oracles — Price feed infrastructure for real-time risk assessment

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Who This Is For

Crypto-native freelancers, consultants, and small agencies who:

• Invoice other businesses on net-30/60/90 terms
• Have $20K+ in outstanding receivables regularly
• Already have a crypto wallet

Not our user:

• Businesses that need cash advances (we don't lend)
• Non-crypto users (wallet required, no fiat on-ramp)
• Consumer-facing businesses (B2B invoices only)

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What Faktory Does

Connect Wallet → Mint Invoice → Deposit to Vault → AI Manages Yield → Client Pays On-Chain → Withdraw

1. Mint — Create an NFT representing your invoice
2. Deposit — Put equivalent CRO into a yield vault
3. AI Agent — Monitors and optimizes your yield strategy
4. Pay — Client pays invoice directly on-chain via x402
5. Withdraw — Get principal + yield when payment settles

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What Faktory Does NOT Do

• Advance cash — We don't lend against invoices
• Collect payments — We don't chase your clients
• Verify invoices — We trust what you enter
• Guarantee returns — DeFi yields fluctuate
• Support fiat — Crypto only
• Onboard non-crypto users — Wallet required

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Success Criteria

This project succeeds if:

• User can mint an invoice in < 2 minutes
• User can deposit and see yield accruing
• AI agent analyzes and recommends strategies
• Client can pay invoice on-chain
• User can withdraw principal + yield without issues

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Scope

In scope (what we built):

• Wallet connection (Cronos Testnet)
• Invoice minting (manual entry)
• On-chain payment (x402 pay invoice)
• Deposit to yield vault
• Dashboard (portfolio, yield tracking)
• Withdrawal flow
• AI agent monitoring

Out of scope (not pursuing):

• QuickBooks production integration
• Multi-chain support
• Team/org accounts
• Fiat on-ramp
• Mobile app

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Tech Stack

Layer	Technology
Network	Cronos (Chain ID 338)
Contracts	Solidity (Foundry)
Frontend	Next.js + wagmi + Tailwind
Agent	TypeScript + WebSocket
Yield	Simulated (for demo)
Oracles	MockOracle (for demo)

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Deployed Contracts (Cronos Testnet)

Chain ID: 338 Deployment Date: 2026-01-22

Contract	Address
InvoiceNFT	0xEde6Db2855BACF191E5B2E2d91B6276bB56bf183
YieldVault	0xD0db0eb608107862E963737FE87ffdFF7f400e3C
AgentRouter	0xb8F4546e24e437779bC09c3b70ce70Ff9542bdD4
PrivacyRegistry	0xf9e5a9E147856D9B26aB04202D79C2c3dA4a326B
MockOracle	0x9A6d36A0487EA52df43E7704a97F47844C4Eac4E

View on Cronos Explorer

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Quick Start

Prerequisites

• Node.js 18+
• pnpm
• Foundry (for contracts)
• MetaMask with Cronos Testnet configured

Add Cronos Testnet to MetaMask

Setting	Value
Network Name	Cronos Testnet
RPC URL	https://evm-t3.cronos.org
Chain ID	338
Symbol	TCRO
Explorer	https://explorer.cronos.org/testnet3

Get test CRO from the Cronos Faucet.

Run Locally

# Install dependencies
pnpm install

# Start frontend
cd app && pnpm dev

# Start agent (separate terminal)
cd agent && pnpm dev

Visit http://localhost:3000

Deploy Contracts

cd contracts
forge script script/DeployCronos.s.sol --rpc-url https://evm-t3.cronos.org --broadcast --slow

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Project Structure

faktory/
├── app/          # Next.js frontend
├── agent/        # TypeScript agent service
├── contracts/    # Solidity smart contracts
└── README.md

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x402 Payment Flow

The payInvoice function enables on-chain invoice settlement:

function payInvoice(uint256 tokenId) external payable {
    // Validates invoice is payable (Active or InYield)
    // Transfers payment to invoice owner
    // Updates status to Paid
    // Emits InvoicePaid event
}

Clients can pay invoices directly through the UI or programmatically via the smart contract.

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Known Limitations (Hackathon Prototype)

This is a demonstration project built for Cronos x402 PayTech Hackathon.

What's Real vs Simulated

Fully Functional

• Smart contracts deployed on Cronos Testnet
• Wallet connection and transaction signing
• Invoice NFT minting and ownership tracking
• On-chain invoice payment (x402)
• Deposit/withdrawal flows
• Dashboard UI and data visualization
• Agent service with WebSocket communication

Simulated for Demo

Yields are SIMULATED:

• YieldVault uses hardcoded APY rates:
  • Conservative: 3.5% APY (constant)
  • Aggressive: 7.0% APY (constant)
• Yield calculation: (principal × APY × time) / (365 days × 10000) on-chain
• Real DeFi integration exists in contract architecture but not activated for demo

Why simulated? Integrating live DeFi pools requires production addresses, mainnet liquidity, and complex error handling. For hackathon purposes, simulated yields demonstrate the mechanism.

Partial Implementation

Agent Service:

• Runs as single Node.js process (port 8080)
• No database persistence (in-memory state only)
• Production would require job queue, PostgreSQL, and monitoring

Privacy Commitments:

• Invoice data stored as keccak256 hashes on-chain
• Reveal verification exists but not used in UI
• True privacy would require zero-knowledge proofs

Security & Legal Disclaimers

Not Production-Ready:

• Smart contracts are NOT audited
• No formal security review performed
• Use testnet only — do not deposit real funds
• Deployer retains admin privileges

Honest Assessment

What we proved:

• Invoice tokenization is technically feasible
• On-chain payments work (x402)
• AI agents can automate strategy decisions
• Clean architecture and professional UI/UX are possible in Web3

What we didn't prove:

• Product-market fit
• Unit economics
• Go-to-market strategy

This project demonstrates technical competence in agentic finance.

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License

MIT