Wolfi - AI-Powered Cross-Chain Arbitrage Agent

Wolfi is an AI-powered arbitrage agent built for the "AI Agents on Arc with USDC" hackathon. It demonstrates sophisticated cross-chain trading by monitoring USDC/WOLF liquidity pools on both Ethereum Sepolia and Arc testnet simultaneously. The system uses an inventory-based arbitrage strategy, pre-positioning USDC capital on both chains to execute parallel trades in 9-15 seconds. When inventory becomes imbalanced (>70:30 ratio), Wolfi automatically triggers CCTP V2 Fast Transfer to rebalance USDC between chains in approximately 50 seconds. The architecture combines PydanticAI with a local 7B parameter LLM (Gemma/Qwen via Ollama), Neo4j knowledge graph for market intelligence, WebSocket listeners for real-time pool monitoring, Redpanda for event streaming, and TimescaleDB for time-series analytics. All blockchain interactions use real Circle USDC from Arc's testnet faucet, with complete transaction history visible on ArcScan and Sepolia Etherscan. Wolfi showcases practical application of Arc's native USDC rails, CCTP's cross-chain messaging capabilities, and AI-driven decision making for DeFi operations - addressing a real market opportunity where arbitrageurs execute $10M+ in daily volume. Technical stack: Uniswap V2 CPMM pools, Hardhat deployment scripts, Python WebSockets, PydanticAI framework, and Docker-compose orchestration of all infrastructure components.