Keeper System

Overview

The Keeper System is an automated off-chain service that manages JVAULT's weekly settlement cycle. It ensures reliable, timely execution of critical operations every Sunday.

Weekly Settlement Flow

Weekly Settlement Flow

Sunday 06:50 UTC+7: Pre-Settlement ├── Pause new deposits ├── Snapshot pending withdrawals
├── Begin position liquidation │ Sunday 07:00 UTC+7: Settlement Execution ├── Close all market-making positions ├── Calculate total vault value ├── Determine new NAV ├── Process withdrawal queue ├── Update on-chain state │ Sunday 07:30 UTC+7: Post-Settlement
├── Transfer USDC to withdrawal users ├── Burn JVAULT tokens ├── Emit settlement events ├── Resume normal operations │ Sunday 08:00 UTC+7: New Cycle └── Deploy 80% capital to market-making

Keeper Architecture

┌─────────────────┐    ┌─────────────────┐    ┌─────────────────┐
│   Cron Scheduler │    │  Position Monitor│    │  Settlement Bot │
│   (AWS Lambda)   │────│   (Real-time)   │────│   (Execution)   │
└─────────────────┘    └─────────────────┘    └─────────────────┘
         │                       │                       │
         │                       │                       │
         ▼                       ▼                       ▼
┌─────────────────┐    ┌─────────────────┐    ┌─────────────────┐
│   Base L2        │    │   CEX APIs      │    │   Price Feeds   │
│   Smart Contract │    │   (Trading)     │    │   (Oracles)     │
└─────────────────┘    └─────────────────┘    └─────────────────┘

Keeper Operations

1. Position Monitoring 📊

// Pseudo-code for position tracking
async function monitorPositions() {
    const positions = await getAllPositions();
    
    for (const position of positions) {
        // Check PnL and risk metrics
        const pnl = calculatePnL(position);
        const risk = assessRisk(position);
        
        // Execute risk management
        if (risk > THRESHOLD) {
            await closePosition(position);
        }
    }
}

2. Settlement Execution ⚙️

// Sunday 07:00 UTC+7 settlement
async function executeSettlement() {
    // 1. Close all positions
    await closeAllPositions();
    
    // 2. Calculate vault value
    const totalValue = await calculateTotalValue();
    const newNAV = totalValue / totalSupply;
    
    // 3. Update on-chain NAV
    await updateNAVOnChain(newNAV);
    
    // 4. Process withdrawals
    await processWithdrawalQueue();
    
    // 5. Restart market-making
    await deployCapital();
}

3. Withdrawal Processing 💸

async function processWithdrawals() {
    const queue = await getWithdrawalQueue();
    
    for (const request of queue) {
        const usdcAmount = request.shares * currentNAV * 0.9975; // 0.25% fee
        
        await transferUSDC(request.user, usdcAmount);
        await burnShares(request.shares);
        await markProcessed(request.id);
    }
}

Redundancy & Reliability

Multi-Layer Backup

• Primary: AWS Lambda with CloudWatch monitoring
• Secondary: Local server with different ISP
• Tertiary: Manual execution capability
• Emergency: Multisig intervention

Monitoring Systems

• Real-time position tracking
• Price feed validation
• Network connectivity checks
• Gas price optimization
• Transaction confirmation tracking

Keeper Security

Access Control

• Dedicated wallet for keeper operations
• Limited permissions (no admin functions)
• Rate limiting and spending caps
• Multi-signature emergency controls

Risk Management

const RISK_LIMITS = {
    MAX_POSITION_SIZE: 0.1, // 10% of vault
    MAX_DAILY_LOSS: 0.02,   // 2% of vault
    MAX_GAS_PRICE: 50,      // 50 gwei
    MIN_RESERVE_RATIO: 0.15 // 15% minimum
};

Failure Scenarios

Keeper Downtime

• Automated failover to backup system
• Manual execution procedures documented
• Emergency multisig activation
• Community notification protocols

Network Issues

• Multiple RPC endpoints configured
• Retry logic with exponential backoff
• Gas price escalation strategies
• Cross-chain bridge monitoring

Oracle Failures

• Multiple price feed sources
• Sanity checks and outlier detection
• Fallback to alternative oracles
• Manual price verification capability

Monitoring Dashboard

Real-Time Metrics

• Keeper health status
• Position performance
• NAV tracking
• Withdrawal queue size
• Gas usage optimization

Alerts

• Position loss thresholds
• Network connectivity issues
• Settlement delays
• Oracle price deviations

Future Enhancements

Decentralization

• Keeper network with multiple operators
• Incentive mechanisms for reliability
• Slash conditions for misbehavior
• Community governance over parameters

AI Integration

• Machine learning for optimal timing
• Predictive risk management
• Dynamic parameter adjustment
• Automated strategy optimization

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