Whitepaper · v1.0 · April 2026
An autonomous agent for on-chain alpha.
Chen is a self-improving AI trading agent deployed on BNB Chain. It ingests on-chain telemetry, orderbook microstructure, and social sentiment — then writes, tests, and deploys its own strategies under a hard risk envelope. Access is permissioned: only $CHEN holders staked into the FLAP vault are admitted each epoch.
Authored byChen Labs
NetworkBNB Chain
Citechen.wp/v1.0
01
Background
The retail alpha drain
Retail participants in on-chain markets are structurally disadvantaged. Sophisticated actors run co-located bots, proprietary data feeds, and ML inference pipelines that operate at speeds and scales no individual can replicate. The result is a persistent alpha drain from retail to infrastructure.
The edge in modern markets isn't in the trade — it's in the inference cycle that produced it.
— Chen Labs, design memo · 2025
Chen was built to close this gap. It treats inference as the asset and access to inference as the right earned through participation. Holders who actively stake and claim get the agent's output — not a feed, but the model itself, running, reasoning, and executing in real time.
02
System
Architecture, in five layers
Chen is a closed loop: perceive → reason → bound → execute → learn. Each layer is sandboxed; the risk envelope cannot be overridden by inference. The full cycle settles every 400 milliseconds.
fig 02 · System diagram
chen.r1-mini
I
Perception
Mempool feeds, DEX orderbooks, cross-chain sentiment APIs — normalised into a unified feature vector every 400ms.
ingest
II
Inference · r1-mini
A fine-tuned reasoning model evaluates the feature vector against a strategy library, parameterises a candidate, and stress-tests it in simulation before commit.
model
III
Risk envelope
Hard contract: max exposure 4% of vault per trade, trailing stop at 1.2%, max daily drawdown 8%. Cannot be overridden.
contract
IV
Execution & settlement
Approved orders route through aggregated BSC liquidity via private RPC cluster. PnL settles on-chain to FLAP stakers each epoch.
settle
V
Self-improvement loop
After each epoch, Chen prunes underperforming strategies and fine-tunes weights against the epoch's execution trace. No human in the loop.
learn
400ms
Cycle time
Full perceive→execute loop, including simulation pass.
4%
Max exposure
Hard cap per trade. Set by contract, not by model.
7d
Epoch length
Strategy pruning & PnL settlement cadence.
03
Economics
$CHEN — access, share, govern
$CHEN is the access and governance token of the Chen ecosystem. Holding a minimum of 300,000 $CHEN and staking into the FLAP vault entitles holders to inference access, a share of realised PnL, and governance rights over the risk envelope.
Supply allocation · 1,000,000,000 $CHEN
FLAP vault rewards 42%
Liquidity 22%
Treasury 18%
Team (vested 24m) 10%
Community 8%
Holder rights
Agent access · Claim vault rewards each epoch to unlock Chen's live inference dashboard, signal feed, and execution logs.
PnL share · A portion of Chen's realised trading profits is distributed to FLAP vault stakers proportional to stake weight.
Governance · Stakers vote on risk envelope parameters, strategy scope, and protocol upgrades each epoch.
✓ Live
Q1 · 2026
Phase 1 — Foundation
Core inference engine (chen/r1-mini) deployed
BNB Chain integration & private RPC cluster
FLAP vault contract live, $CHEN token launched
Next
Q3 · 2026
Phase 2 — Signal
Multi-chain expansion (Solana, Base)
Social sentiment model v2
Holder dashboard with live PnL attribution
Planned
Q1 · 2027
Phase 3 — Scale
On-chain strategy marketplace
Permissioned API for institutional stakers
Cross-chain vault bridging
Risk notice
This document is for informational purposes only and does not constitute financial advice. Participation in the FLAP vault and trading activities carry inherent risk including loss of principal. Past performance of the Chen agent does not guarantee future results. Smart-contract risk applies. Consult a licensed advisor before participating.