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Werracle: Sub-Cent Intra-Block AI Reflex Oracles and Flash-Loan Circuit Breakers for EVM Smart Contracts

2026-09-25 02:45:03
Volkan Da\u{g}l{\i}, Zerrin Da\u{g}l{\i}, Da\u{g}han Da\u{g}l{\i}

Abstract

Contemporary on-chain artificial intelligence (AI) encounters an intractable Von Neumann memory and latency wall. Storing static floating-point neural weight matrices inside Ethereum Virtual Machine (EVM) storage costs millions of gas, rendering direct on-chain inference impossible. While Zero-Knowledge Machine Learning (ZK-ML) offloads matrix tensor multiplications to off-chain provers, it introduces fatal constraints: 10 to 300 seconds of SNARK proving latency and 250,000 to 500,000 gas per proof verification. Because decentralized finance (DeFi) exploits - such as uncollateralized flash-loan attacks, predatory sandwich MEV, and toxic loss-versus-rebalancing (LVR) flow - occur atomically inside a single block, ZK-ML oracles cannot react in time. Here, we present Werracle, a production-grade, zero-storage on-chain AI decision oracle fitting inside a single 32-byte EVM storage slot (bytes32). Leveraging foundational procedural Mandelbrot escape dynamics (z_{n+1} = z_n^2 + c) established by Dagli et al. (arXiv:2609.25498), Werracle derives continuous non-linear decision hyperplanes from a 24-byte coordinate triplet Theta = (c_x, c_y, zoom). Implemented in pure Solidity bytecode using fixed-point Q16.16 arithmetic (this http URL), Werracle evaluates a 16-point Pareto micro-grid in only 21,438 gas (under 0.0005 USD on Layer-2 rollups like Base and Arbitrum) with sub-millisecond execution latency. We demonstrate real-world DeFi efficacy via this http URL, a Uniswap v4 dynamic swap fee governor that measures orderbook turbulence on-the-fly and atomically adjusts liquidity provider fees between 0.05% and 0.50%. The protocol is formally verified against a 1,000-test cryptographically sealed deterministic verification suite (100.0% pass rate) with telemetry permanently disabled, operating live on a dedicated EVM devnet sandbox (Chain ID 4242).

Abstract (translated)

URL

https://arxiv.org/abs/2609.30719

PDF

https://arxiv.org/pdf/2609.30719.pdf


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