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Wallet Manager

The wallet management system orchestrates the complete portfolio optimization workflow. It coordinates data collection, portfolio analysis, optimization execution, and performance tracking for a single wallet across multiple blockchain networks.

Architecture

Smart Account Architecture

At the core of Pulse's security framework is its self-custodial smart account architecture. Each smart account is automatically created during activation and remains under the complete control of the user's wallet. This architecture ensures that the protocol never has access to private keys or funds, while enabling secure management of deposited ETH and Pendle market interactions. The smart account serves as a secure foundation for all of Pulse's automated operations on Arbitrum.

Session Keys

Pulse utilizes advanced session key technology to enable automated yield optimization while maintaining robust security. These keys grant specific, limited permissions for interacting with Pendle markets on Arbitrum and operate within strict time-bound authorizations. Users maintain full control, with the ability to revoke permissions at any time. All operations are secured through smart contract permissions, ensuring that session keys can never access user funds directly.

Execution Module

Pulse's execution module orchestrates all agent operations with maximum efficiency on Arbitrum. This component handles the precise scheduling of transactions, optimizes timing for PT market interactions, and ensures reliable execution of all operations. The module operates as the operational backbone of Pulse, coordinating all automated actions while maintaining security and performance.

Core Dependencies

Component Integration

  • Transaction Cost Estimator: Provides gas cost analysis for Arbitrum operations
  • Data Collector: Handles market data and price feeds
  • Optimizer: Executes mathematical optimization
  • Transaction Planner: Converts optimization results to executable transactions
  • Balance Reader: Queries on-chain balance data on Arbitrum

Optimized for ETH-based yield strategies. Uses a 0.5% portfolio buffer to prevent rounding issues during optimization.

Optimization Workflow

The main optimization cycle follows this sequence:

  1. Market Data Collection: Fetches active Pendle markets on Arbitrum
  2. Portfolio Snapshot: Collects current balances and generates normalization actions
  3. Reallocation Check: Validates whether reallocation should proceed
  4. Linear Optimization: Solves for optimal allocation using current state
  5. Delta Validation: Ensures APY improvement meets minimum threshold worth to reallocate
  6. Transaction Planning: Converts optimization results to executable actions with automatic token handling
  7. Pipeline Execution: Runs all transactions through validation and execution pipeline
  8. Performance Tracking: Updates wallet performance history

Token Standardization

The system automatically handles token standardization:

  • Detects ETH balances on Arbitrum
  • Automatically manages token conversions for optimal operations

Deactivation Process

Portfolio Deactivation: Systematic portfolio liquidation that:

  • Liquidates all PT positions to base tokens
  • Returns all base tokens to user's wallet on Arbitrum
  • Executes through the same planning and pipeline infrastructure

Performance and Risk Management

Reallocation Controls

Reallocation Controls: Risk management logic that:

  • Compare current portfolio value to historical maximum
  • Require minimum performance improvement before allowing reallocation
  • Allow first-time allocations regardless of performance

APY Delta Validation

APY Delta Validation: Ensures optimization provides meaningful improvement by comparing initial vs final weighted APY against the configured threshold.

Performance Tracking

Performance Tracking: Records portfolio snapshots for historical analysis and reallocation control calculations.