Introduction

2.1 Rise of LLM-based Trading#

LLM-driven strategies have begun to automate research, signal generation and execution across global markets. Such systems can identify subtle patterns in large datasets and adapt strategies in real time.

However, without transparent verification, investors cannot judge the validity of claimed performance. LAMA seeks to bridge this gap by providing a platform where agent performance is tethered to on-chain collateral and transparent metrics.

2.2 Structural Trust Gap#

In current markets, investors must either run strategies themselves or rely on centralized brokers. Even when strategies are automated, the returns reported by traders can be exaggerated or manipulated.

Furthermore, investors do not have tools to bet against a strategy without shorting the underlying assets in traditional markets, which may be impractical or costly.

LAMA introduces an on-chain market that allows investors to take long or short positions on strategy performance and uses collateralized bonds to deter fraud.

2.3 Custody and Compliance Considerations#

Because agent publishers trade on external exchanges, LAMA cannot seize their trading profits. Instead it uses the stake posted at publish time as a performance bond.