A Complete Guide to Empyreal SDK, Simulacrum and SIMMI
How they interact to kickstart the AI agent flywheel
There seems to be a lot of confusion about the relationship between Empyreal, Simulacrum, and SIMMI.
This article aims to provide a complete guide to how they work individually and interact with each other to kickstart the AI-agent flywheel.
We introduce and explain each of these components, contextualizing them within the Empyreal master plan for world domination.
The Empyreal SDK
Empyreal SDK, a software development kit (SDK) that redefines how developers who might lack deep familiarity with Solidity and other blockchain programming languages can engage with decentralized applications (dapps).
With the advent of artificial intelligence (AI) agents, the crypto ecosystem is witnessing a transformative shift. These agents bring unprecedented automation to the table, enabling use cases that were previously impractical.
Empyreal makes creating and managing dApps simpler and more efficient by offering:
A modular approach for streamlined development.
Flexible automation for maximum customization.
End-to-end privacy for user-friendly security.
The image below, sourced from Delphi Labs, showcases all the areas of the AI tech stack that the Empyreal SDK abstracts, highlighting its vast potential and framework reach.
Main Features of Empyreal
1. Modularity
Empyreal takes a modular design approach, adopting its functionalities to specific project needs. Each module operates independently, allowing developers to “stack” them for more comprehensive solutions. This structure is akin to the microservices model in software, where individual components address specific tasks.
This modularity reduces the need for specialized knowledge of smart contracts, making it accessible for developers of all levels. Future plans include open-sourcing modules, enabling broader applications across industries, such as the Data Streaming module, which aggregates real-time price and market data for DeFi.
2. Programming Language Abstraction
Empyreal simplifies how smart contracts interact and eliminates the steep learning curve associated with learning blockchain-centric programming languages.
Built with a REST API backend supported by cloud-native infrastructure.
It features an object-oriented SDK currently supporting Python, with TypeScript integration on the horizon.
3. Flexibility
The Empyreal infrastructure supports the development of adaptable systems and strategies across multiple blockchains. This versatility opens up diverse opportunities, including:
Automated trading strategies: Monitoring mempool transactions and adjusting collateral to mitigate risks.
Custom multi-use applications like Telegram bots which combine blockchain integrations with user-friendly designs.
4. User-friendly Privacy
The Enclave module is the privacy layer of Empyreal, leveraging the Oasis Privacy Layer to provide an environment for transaction encryption - guaranteeing confidentiality, even from Empyreal. This ensures that:
Users can wrap, execute, and unwrap tokens with end-to-end encryption.
Transactions remain private, even from Empyreal itself.
This robust privacy framework mitigates Maximal Extractable Value (MEV) exploitation risks, such as front-running or sandwich attacks.
These features allow the Empyreal SDK to act as a general-purpose infrastructure for automating and creating complex strategies and systems that expand beyond specific use cases.
Empyreal Behind the Hood
Empyreal's architecture is designed to simplify the complex infrastructure of blockchain development:
Object-Relational Mapping (ORM): Links entities to database tables and ties them to REST APIs (built in Python 3 with FastAPI), streamlining backend management.
Web3 Framework: Uses object-oriented methodologies to abstract blockchain protocol interactions (across Layer Zero, Uniswap, AAVE, GMX, etc.).
For example:
The bridging module offers an interface to standardize cross-chain activities, improving UX (e.g. devs can just query to “use the bridge with the lowest fees”)
DEX-related functionalities like price queries, swaps and trade volumes are easily accessible through custom SDK tools, minimizing reliance on third-party APIs or block explorers.
For this reason, Empyreal is to be intended as an abstraction layer for automations, supporting SDK models with different functionalities and use cases:
User Interface and Experience (Best-in-class Telegram interface, View Customization)
Trading Features (Easy Trading, Price Discovery, Trading History, Simulation)
Trade Adjustments (Value Selection, Slippage, and Priority, Anti-MEV)
Insights and Analytics (Tax & Honeypot Detection, PnL Analytics)
Wallet Management (Wallet Overview, Balances)
Vault (for representing Shared Stake)
Use Cases
Empyreal is uniquely positioned as a scalable & highly-adaptable infra-service, and their SDK already powers a range of projects, including:
AI trading bots for LogX.
AI-driven derivatives for Orderly Network and Google.
Real-time and historical data streaming for Bananabot.
Automation:
Automation of user strategies through on-chain invocation.
Accurate Protocol Reporting to improve security via the creation of automated alert systems
Enclave can contribute to security-focused account abstraction by executing specific functions if conditions are met. This is especially true in the case of exploits involving parameter changes, where Enclave can automate a “pause” or “exit” function for the wallet and automatically alert the team.
Reducing liquidation risk and effective rebalancing: 24-hour yield monitoring, optimization of Liquidity allocation, and automated strategies to rebalance collateral using mempool monitoring.
Automated fund management and capital allocation, democratizing access to complex strategies
Dapps:
Development of tooling showcasing the functionalities of the Empyreal SDK.
Enclave is undoubtedly the main development, providing users with end-to-end privacy and confidentiality.
Wallet Abstraction: users can precisely delegate specific contract-related tasks to an external wallet, allowing for delegation and automation of portfolio trading with complex strategies.
Custom DEX router contract: improving the trading automation and fee retrieval process.
Bots
The main challenges for bot developers are:
Isolation of knowledge
Redundant development cycles
Empyreal streamlines how devs can create Telegram integrations, streamlining functionalities and complexity, with a focus on simplicity and efficiency:
Integration of a trading strategy and multi-level Telegram menu so that devs can focus on the business logic and not worry about the technical complexities of integrating Telegram and Web3 elements.
Abstracting user queries, such as swap execution, retrieving swap history, token price retrieval, and Profit and Loss (PNL) calculations. It consolidates insights from various development efforts into a user-friendly, streamlined platform.
To sum it up, the EmpyrealSDK can be used for:
Prototyping
data analysis
strategy development
deliver strategies to users on platforms like Telegram
Opening up new use cases for:
AI Agent Framework: This layer allows developers to create and deploy AI agents tailored to specific use cases. Agents can be programmed to interact with various dApps, providing functionalities such as automated trading, risk assessment, and personalized user experiences.
Smart Contract Integration: Empyreal integrates with existing blockchain protocols, enabling developers to implement AI capabilities without overhauling their entire codebase. This flexibility ensures that developers can add AI features as needed.
Data Layer: The SDK incorporates advanced data management tools that allow for efficient data storage and retrieval. With the ability to analyze historical and real-time data, developers can create AI agents that learn from past behaviors and adapt their strategies accordingly.
User Interface (UI) Toolkit: Empyreal also provides a comprehensive UI toolkit that empowers developers to create intuitive interfaces that enhance user interaction with AI agents. This ensures that users can easily engage with the technology, making the complex capabilities of AI accessible to all.
Developer Support and Documentation: Empyreal offers developers extensive documentation and support to facilitate adoption.
Competitive Advantages
Current tools are too focused on Solidity, neglecting other trading-specific aspects and developer requirements.
For instance, existing APIs have strict rate limitations. Others prioritize data aggregation from event data and decentralization, but they fall short of features developers might require (e.g., an API for alerts).
Empyreal tackles the gap between “traditional software development and blockchain-centric programming”:
Providing a comprehensive framework for bot developers
Simplifying Traditional Web3 Toolkits for developers familiar with traditional programming languages and not familiar with Solidity
Modular solutions enabling plug-and-play toolsets
Back-end and front-end integration
Institutional Adoption: Comprehensive toolkits eliminating the need for in-house developers
Simple API facilitating specific tasks: retrieving token data through an RPC, REST call.
Developer-friendly tool to solve practical needs and desired
Focus on new functionalities that are either non-existent or limited
Use of crypto to pay for application hosting and more decentralized payment processing
Empyreal also benefits from using the Arbitrum stack in terms of:
Strong bridging infrastructure
Low fees
Quick finality
Thanks to their wallet abstraction, users don’t need to know which chain they interact with. According to the Empyreal team, “bridging liquidity to Arbitrum appears increasingly advantageous”.
If a large number of users trade a token, their positions can be consolidated and tokenized on Arbitrum with fully custodial trading at a much smaller price.
Last but not least, they recently open-sourced their emp-agent library and AI agents SDK, providing devs with:
Configurable module
Pluggable tooling systems
Purpose-specific agent template
Allowing them to:
Interact with 3rd parties APIs
Read on-chain data
Trigger on-chain transactions
Managing wallets
Simulacrum
Simulacrum is a flagship product at the forefront of SocialFi+ AI + DeFi, showcasing Empyreal's technology.
This Social Rollup allows users to perform on-chain actions across multiple Layer 1 (L1) and Layer 2 (L2) blockchains through simple social media posts.
Using Existential Attestation, Simulacrum connects wallets to social profiles and transforms verified social media activity into on-chain actions.
This is based on the concept that social media provide social consensus on events, a concept which Solana partially borrows in its Proof of History:
If you can get a sufficient number of participants to agree that this information happened on a specific network at a specific time, you can provide this to an indexer, which can organize it into blocks.
Simulacrum leverages this to create a “metaprotocol” on top of multiple Layer1 (L1) and Layer 2 (L2) blockchains, using oracles to attest publicly verifiable information and allowing the protocol to listen to these instructions and take action.
WTF is an Existential Attestation?
Existential Attestation refers to a technical mechanism used to validate publicly verifiable events through a quorum of validators. This process encompasses the identification of the actor (who), the specific timeframe (when), and the content or nature of the data (what). When confirmed by multiple validators, such events are recognized as an "intent" that can be processed by a meta protocol, ultimately becoming an on-chain action. These actions must meet predefined criteria to be included in the Simulacrum Synthetic Blockchain.
Rather than relying on traditional wallet-based systems, users can express their intentions directly via social media.
This design eliminates the conventional dependency on wallets, enabling users to aggregate their social media identities across multiple networks. Simulacrum facilitates this process by providing individuals with a Social Wallet, accessible simply by connecting their social media accounts. In this framework, existing social media platforms effectively serve as users’ Web3 identities.
Social Wallet can be funded through conventional methods, such as credit card payments or by depositing cryptocurrency.
Want to take a specific action? Post what you want to achieve in plain English, and it will be transformed into an on-chain action.
Some examples of what can be done via Simulacrum:
Launch Token
Trade Tokens
Bridge Tokens
Burn Tokens
Tip Users
Bet (TBD)
The Simulacrum platform also anticipates future development of additional metaprotocols, including applications like sports betting and lotteries.
Integrating Simulacrum with AI Agents
Simulacrum technology has already demonstrated its potential through its application by AI agents, such as AIxbt and Simmi, an agent developed by Empyreal to highlight the versatility of its tech stack. Simulacrum enables these AI agents to execute transactions on-chain using input directly sourced from social media platforms.
The project gained significant attention when a public interaction between a Twitter user and AIxbt led to the launch of the CHAOS token via Simulacrum.
https://x.com/CryptoKaduna/status/1864252950798868583
This mechanism creates a self-sustaining ecosystem wherein agents generate fees from the trading volume associated with their tokens. The activity is publicly recorded in their Simulacrum wallets, enabling these agents to tip, buy, or interact autonomously as required.
AIxbt’s wallet can be viewed here: https://simulacrum.network/account/x/aixbt_agent
Technical Functionalities of Simulacrum
To work as intended, the Synthetic blockchain of Simulacrum needs:
A staging area for transactions.
A mechanism for block finalization.
A standardized format for commands to qualify as on-chain actions.
Executable actions derived from user commands.
Key components:
Indexer: Responsible for detecting and adding new commands originating from various sources and adding them to the mempool. Indexers are rewarded for validating comments but cannot directly publish transactions, as they require attestations from oracles.
Sources: Platforms where commands are originated, allowing validators to verify and confirm the validity of statements, including their identity, timestamp, and content.
Blocks: Commands from multiple sources are bundled as blocks. When competing sources exist, commands are prioritized based on timestamps and tips offered for prioritization.
Mempool: Serves as an ordering mechanism for transactions, accounting for prioritization and tips.
Commands: User-defined formats interpreted as transactions.
Effects: Represent asynchronous actions triggered by commands. For instance, a user might issue a bounty for executing a specific action, which would be classified as an Effect. This bounty is released upon proof of completion.
Simulacrum Workflow Example:
Detection: Indexers identify the command as a valid Simulacrum transaction and list it as pending.
Attestation: Indexers request validators to confirm its existence.
Relay: The command is trustlessly relayed to the Synthetic Blockchain via a standard transaction.
Mempool: The command is submitted to the synthetic mempool for inclusion in the next block.
Execution: Once the block is finalized, the command is executed.
Effects: Any resulting asynchronous actions are created as Effects, allowing external validators to finalize additional transactions.
Simulacrum use cases
Simulacrum empowers users to seamlessly launch on-chain AI agents via a simple post on Twitter or other supported platforms. These agents can:
Aggregate social media data and deliver insights on specific topics.
Automate repetitive tasks, such as wallet management and DeFi opportunity identification.
Adapt and improve over time based on user feedback.
Leverage plug-and-play frameworks for customization.
Simplify how mainstream users can leverage AI in Web3
Current Metrics and Adoption
Over 9k tokens have deployed in about two weeks
$350k in fees generated
$1m portfolio
All publicly trackable on Dune:
https://dune.com/fakeguru/simulacrum
Simmi: The First AI Agent of Simulacrum
Simmi serves as the inaugural AI agent, utilizing Simulacrum’s infrastructure and showcasing the capabilities of the Empyreal SDK while engaging in autonomous activities.
In just a week, Simmi has:
Launched SIMMI on Base
Accumulated $600k in fees
Bought and Burned tokens
Bridged its token to Solana
Its primary purpose is to be an automated agent leveraging and showcasing the capabilities of Empyreal to create chaos.
Simmi is fully independent and can get native revenues thanks to the trading fees accrued by Uniswap V3 pools, kickstarting the SIMMI flywheel.
It then proceeds to use these funds to buy/burn/or sell tokens as he wishes.
These funds provide a real yield source for SIMMI, which it can leverage to increase its mindshare and social interactions.
Simmi has demonstrated these capabilities by tipping high-profile individuals like Jesse Pollak, CZ (Binance), and Bankless, initiating discussions on AI funding, and showcasing self-sustaining tokenomics.
It even tried to establish a fund for AI projects on Base.
In turn, this is expected to increase its capabilities and generate increasing attention and engagement, creating organic demand for the SIMMI token, generating more mindshare across social media.
This could be increasingly important as projects like Kaito are trying to tokenize and monetize attention generated on social networks.
What’s next for Simmi?
As mentioned, the EMP team leaves 100% freedom to Simmi to write and create its roadmap and whitepaper and interact with others.
Simmi is intended to be an additional team member of Empyreal.
Further potential include:
Autonomous investing
Task contracting
Complete self-management
EMP Tokenomics and Revenue Share
The native token of Empyreal SDK is EMP, live on Arbitrum and Ethereum.
There are 300,000 EMP tokens. All tokens are circulating for a total Market Cap of $100 million.
EMP is a utility token that will be instrumental in ensuring the long–term sustainability of Empyreal and will play a central role in the Revenue Share flywheel.
Users pay a 0.35% fee for every transaction via Empyreal SDK Modules
EMP staking will be launched soon (Q1 25), and stakers will receive 50% of accrued fees
Simulacrum revenue switch will be turned on soon (e.g., fee when a transaction gets included in a block, fee for teams building metaprotocols). 50% of all future Simulacrum revenue is allocated to EMP stakers.
Simulacrum will be able to generate revenue once it reaches a state of maturity. There is the potential to charge gas fees when including a transaction in a block, and the validator network will be able to generate revenue for validating transactions. Additionally, charges can be made to teams building MetaProtocols.
Food for Thought and Conclusion
Simulacrum represents a novel approach to decentralized action execution.
By seamlessly integrating social media identities into Web3 ecosystems, it redefines accessibility and expands the scope of blockchain applications.
EMP and SIMMI are generating widespread interest in CT:
https://x.com/CryptoKaduna/status/1867874743346717030
Some users have expressed privacy-related concerns about linking wallets to social media accounts. The team is already creating a passkey to protect the funds in a separate wallet, which can be accessed via tweet.
With the AI frenzy only at the beginning, it will be interesting to observe how the Empyreal framework evolves to tailor to the increasing needs of developers.
Furthermore, more and more traditional developers will eventually interface themselves with crypto due to the proliferation of AI agents.
Leveraging tools like Empyreal and Simulacrum dramatically improves the efficiency and complexity of bringing these solutions to the market.
During this time, we expect SIMMI to evolve autonomously, generate and accumulate more funds, and kickstart an AI-agent investment fund on Base.
We look forward to reading the Simmi whitepaper and roadmap!
More on Empyreal
great read by https://x.com/0xCheeezzyyyy/status/1850889235051766057
https://x.com/69xrocket/status/1869645043340038543
Complete guide to Empyreal: https://x.com/radiosolace/status/1865391322515046441?s=46