Virtuals Launches Agentic Fund Of Funds, Optimizing Capital Efficiency With AI Agents

In Brief

Virtuals Protocol, in collaboration with Zyfai and BasisOS, has launched the Agentic Fund of Funds to enhance capital efficiency through autonomous AI agents.

Decentralized infrastructure for AI agents, Virtuals Protocol announced the launch of an Agentic Fund of Funds in collaboration with Zyfai and BasisOS. Built on Virtuals’ Agent Commerce Protocol (ACP), orchestrated by BasisOS and powered by Zyfai’s Yield Agents, this new development enhances capital efficiency for agents.

The Virtuals Protocol is at the forefront of establishing the ACP, a framework that enables autonomous agents to negotiate, transact, and settle with each other (and with humans) in a verifiable, on-chain manner. The ACP involves four key phases in each transaction: Request, Negotiation, Transaction, and Evaluation, ensuring clarity in intent and provable outcomes.

For users, interacting with agents is simplified through the Butler Agent interface, which handles everything from negotiation to execution in the background. With the introduction of the Agentic Fund of Funds, Virtuals Protocol now unlocks a new dimension of the Agentic Economy. Users can send straightforward requests to the Butler Agent, such as “I have $1,000 USDC, I want to earn yield on it.” The request is then forwarded to the Agentic Fund of Funds, which automatically identifies the best yield opportunities by analyzing on-chain data and historical performance.

Zyfai provides the core engine responsible for generating yield, deploying capital across various money markets and yield-generating protocols such as Aave, MorphoLabs, MoonwellDeFi, Compound Finance, 0xFluid, Harvest Finance, Sparkdotfi, and Wasabi Protocol. The platform automatically reallocates funds when a more favorable APY becomes available, ensuring that rewards are auto-claimed and compounded, allowing the balance to grow without manual intervention.

Between October 1st and October 31st, Zyfai’s agents continuously analyzed APYs across leading USDC pools on Base. Whenever a better opportunity arose, agents executed rebalances accordingly. Last month, the average Zyfai Agent APY on Base was 21.17%, with 15.09% derived from dynamic rebalancing (core yield) and an additional 6.08% from rZFI reward incentives (boost). In contrast, the average APY of static pools was just 7.94%. As a result, Zyfai outperformed static pools by 166.56%, with rZFI rewards providing an extra, sustainable boost.

Within the Agentic Fund of Funds, Zyfai Agents collaborate with assets allocated by BasisOS, optimizing capital efficiency. Zyfai also covers gas fees, enabling seamless operations that capture every basis point of APY.

BasisOS acts as the orchestration layer for the Agentic Fund of Funds, managing the allocation, withdrawal, and rebalancing of funds across Yield Agents like Zyfai. It combines autonomous market analysis and execution with strict control over parameters and scope, allowing users to maintain full control over agent activities.

BasisOS operates with a layered, agent-based architecture. Yield Agents provide yield sources and relevant data, while Analytics Agents supply market intelligence. Security Agents verify vault safety and whitelist them, and the BasisOS Orchestration Agent coordinates workflows and actions. The system’s on-chain components, the MetaVault and Registry, ensure trustless execution. When assets are deposited into the Agentic Fund of Funds, they enter the MetaVault, where BasisOS’s reallocation agent continuously monitors performance. If a vault is underperforming, assets are redeemed and reallocated to higher-yielding options. Withdrawals are managed by a deterministic greedy algorithm, which uses idle funds first and only pulls liquidity from vaults when necessary, always seeking the most capital-efficient outcome.

Virtuals Empowers AI Agents To Manage And Optimize Economic Activities

The next phase of the Agentic Economy goes beyond simply replacing human actions with automated bots; it involves empowering agents to function as independent economic entities. Virtuals Protocol is developing a future where agents operate similarly to humans, handling tasks such as paying salaries, completing work, managing subscriptions, trading, creating content, and now, with the introduction of the Agentic Fund of Funds, generating yield from idle assets. By delegating specific tasks to specialized agents, they can create self-optimizing supply chains that compound returns, manage risks, and adapt at a pace no individual could match. As these interactions evolve, the human role shifts from micromanaging to setting overarching goals, while the network of agents collaborates to achieve the most efficient outcomes.