# How Do Soly AI Agents Work?

Soly AI Agents are designed with advanced capabilities to not only complete predefined tasks but also to adapt dynamically to complex and evolving scenarios. Powered by recursive reasoning, memory retention, and autonomous self-reflection, these agents go beyond basic automation, mimicking human-like problem-solving processes with a focus on precision, scalability, and continuous improvement.

#### Core Workflow <a href="#core-workflow" id="core-workflow"></a>

Soly AI Agents operate through a recursive, memory-driven workflow, enabling systematic decision-making and execution. The process consists of the following key stages:

**1. Understanding:**

* AI Agents interpret user instructions using advanced NLP techniques, identifying objectives, contextual nuances, and any implied requirements.
* They utilize the Memory Stream to reference past tasks, enhancing contextual awareness and continuity.

**2. Task Breakdown:**

* Complex objectives are decomposed into smaller, manageable steps, creating an organized plan for execution.
* The Chain-of-Thought reasoning mechanism ensures systematic planning and prioritization of sub-tasks.

**3. Tool Selection:**

* Agents leverage their integrated tools and external APIs, selecting resources such as crypto search engines, DeFi platforms, and on-chain interaction modules.
* Adaptive reasoning allows them to adjust tool selection in real-time based on task complexity and conditions.

**4. Execution and Iteration:**

* Tasks are executed recursively, with agents continuously monitoring progress and updating strategies based on feedback and environmental changes.
* Reflection loops enable agents to evaluate results after each iteration, identifying areas for improvement and optimizing performance.

**5. Result Delivery:**

* The AI Agent synthesizes the outcomes of completed tasks into a cohesive, user-friendly response.
* Insights are presented clearly, along with actionable recommendations where applicable.

This recursive workflow enables Soly AI Agents to refine their reasoning, adapt to unexpected changes, and perform complex tasks with unparalleled efficiency.

#### Capabilities and Advanced Use Cases <a href="#capabilities-and-advanced-use-cases" id="capabilities-and-advanced-use-cases"></a>

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Soly AI Agents excel in addressing a diverse array of crypto-related challenges, leveraging their dynamic reasoning and autonomous decision-making:

**1. Research and Market Analysis:**

* Collect and process real-time market data from trusted sources, including on-chain metrics, trading volumes, and social sentiment.
* Perform advanced correlation and pattern analysis to identify trends and actionable insights.
* Highlight market opportunities and risks, tailored to user-defined parameters like risk tolerance and trading goals.

**2. Trading and Investment Management:**

* Formulate personalized trading strategies by analyzing historical data, risk preferences, and market conditions.
* Scan DEXs and on-chain liquidity pools to identify opportunities that match user-defined criteria.
* Execute trades autonomously, adapting strategies based on market volatility and real-time feedback.

**3. Portfolio Analysis and Optimization:**

* Analyze user portfolios by tracking wallet activity and calculating performance metrics such as allocation, ROI, and asset value trends.
* Detect portfolio risks, including overexposure or underperformance, and recommend optimization strategies.
* Suggest diversification opportunities across DeFi protocols and yield-generating activities.

**4. NFT Market Insights:**

* Track key metrics like floor prices, trading volumes, and market trends across NFT marketplaces.
* Identify undervalued NFTs through rarity analysis, trait evaluation, and historical pricing data.
* Provide real-time alerts for upcoming mints, reveals, and other time-sensitive opportunities.
