HOW IT WORKS
DERP FARMS is a programmable portfolio system built around autonomous Farmers. Each Farmer has its own generated identity, personality, asset configuration, and trading strategy. Mint capital is algorithmically distributed according to the Farmer’s generated and region-eligible asset configuration, establishing its initial portfolio allocation. Fund it, configure how it operates, and let the Farmer manage its portfolio within the rules of the protocol.
BUILD YOUR FARMER
DERP FARMS separates a Farmer's identity from the decisions it makes with its capital. The Farmer is generated with a permanent set of attributes that determine its personality and eligible asset configuration. The owner then configures the Farmer's operating parameters while the autonomous trading system handles execution.
UNIQUE IDENTITY
Each Farmer is a distinct on-chain identity with its own attributes, personality, strategy, and portfolio account.
WHAT IT OWNS
The Farmer's generated personality helps determine its supported asset configuration, subject to regional eligibility.
HOW IT OPERATES
Strategy determines how the Farmer manages capital, including risk, trading activity, rebalancing, and profit-taking behavior.
AUTONOMOUS EXECUTION
Once funded, Shadow / Tractor operates the Farmer's portfolio within its assigned asset configuration, owner-configured parameters, and protocol restrictions.
YOUR FARMER IS THE ACCOUNT
FARMER NFT
The Farmer exists as an ERC-721 token representing its unique on-chain identity. Its generated attributes, personality, strategy configuration, and associated portfolio are tied to that Farmer.
TOKEN-BOUND ACCOUNT
The Farmer is associated with a Token-Bound Account that serves as its on-chain portfolio account. The TBA can hold and interact with supported assets and provides the account environment through which permitted portfolio operations are executed.
Your wallet controls access to the Farmer interface. The Farmer itself is the portfolio identity. Capital deposited for the Farmer is managed through its associated account and subject to the protocol's execution rules.
DERP ENTROPY
DERP is used as the entropy input for the Farmer generation system. Generated attributes become the underlying inputs used to determine the Farmer's personality and resulting portfolio identity.
The generation system receives its decentralized entropy input.
Farmer attributes are generated and assigned to the resulting identity.
The resulting attribute combination resolves into a defined Farmer personality.
The personality determines the Farmer's generated asset configuration, subject to regional eligibility.
PERSONALITY = WHAT
Every Farmer operates within a defined four-stock universe. The personality is not merely cosmetic; it is the mechanism that determines which supported assets belong to that Farmer.
ASSIGNED ASSETS
In an eligible region, the Farmer receives four supported stock assets based on its generated personality. Those assets become the Farmer's fixed investment universe. Where Robinhood stock tokens are unavailable or not permitted, the regional fallback is $STONKBROKER, $DERP, and Ethereum at 33% each.
NOT USER SELECTED
Owners configure how the Farmer operates, but they do not replace the underlying asset configuration. In eligible regions, the four assets are determined during generation; in non-eligible regions, the defined $STONKBROKER / $DERP / Ethereum fallback applies.
STRATEGY = HOW
Personality determines what the Farmer can trade. Strategy determines how the Farmer manages it. Owners can configure the Farmer's operating behavior without changing its underlying identity or assigned assets.
CAPITAL AGGRESSION
Determines how aggressively the Farmer is permitted to deploy capital within its eligible portfolio.
EXECUTION TEMPO
Determines how frequently the autonomous system may evaluate and execute portfolio changes.
PORTFOLIO DRIFT
Determines how actively the Farmer works to restore its desired portfolio allocation.
PROFIT REALIZATION
Establishes the owner's selected profit-taking threshold used by the trading system.
YOU SET THE PARAMETERS
The Farmer is autonomous, but autonomy does not mean unrestricted behavior. Owners can adjust defined operating parameters through the Farm interface. Changes are submitted on-chain and require a blockchain transaction.
FARM SETTINGS
Risk level, trade frequency, rebalancing, take-profit behavior, allocation, and other supported strategy parameters can be adjusted through the Farmer's Farm interface, within protocol-defined boundaries.
FARMER BOUNDARIES
The assigned asset configuration, Token-Bound Account security, withdrawal limits, withdrawal cooldowns, execution permissions, security rules, and administrative controls remain outside the owner's configurable strategy.
FUND YOUR FARMER
A Farmer becomes operational when it has capital to manage. ETH can be deposited into the Farmer's associated account. The deposited capital then enters the Farmer's configured crypto allocation system.
The owner sends ETH to the Farmer's designated funding pathway.
Capital enters the Farmer's Token-Bound Account environment.
The backend conversion and routing layer handles deployment into the supported trading environment.
Capital is distributed according to the Farmer's applicable asset configuration and configured strategy.
ETH / $STONK / $DERP
The Farmer's crypto strategy can determine the relative allocation between Robinhood ETH, $STONK, and $DERP, while a cash reserve can keep a defined portion of capital undeployed.
WITHDRAWAL RULES
The Farmer's Token-Bound Account is designed for long-term capital deployment. Deposits can be added to the Farmer, while withdrawals are deliberately constrained by protocol rules to preserve the integrity of the portfolio system.
ANNUAL WITHDRAWAL WINDOW
A withdrawal may be made no more than once during any 12-month period. After a withdrawal is executed, the withdrawal cooldown resets.
HALF OF EACH POSITION
A withdrawal is limited to a maximum of 50% of the balance of each individual position held by the Farmer's Token-Bound Account.
NOT USER CONFIGURABLE
Withdrawal limits and cooldowns are protocol-level restrictions. They cannot be increased, bypassed, or modified through the Farmer's strategy settings.
PORTFOLIO CONTINUITY
At least 50% of every position remains inside the Token-Bound Account after a maximum withdrawal, keeping capital inside the Farmer's portfolio system.
HOW THE 50% LIMIT WORKS
If a Farmer's Token-Bound Account holds 1.00 ETH, 100 $STONK, and 50 $DERP, the maximum permitted withdrawal during its available withdrawal window would be 0.50 ETH, 50 $STONK, and 25 $DERP. The remaining 50% of each position stays inside the Farmer's account.
THE TRACTOR WORKS THE FARM
Tractor is the operational representation of Shadow, DERP FARMS' delegated autonomous execution service. Shadow is the mechanism that actually initiates and submits portfolio transactions on behalf of the Farmer's ERC-6551 Token-Bound Account. It is not merely an observer or recommendation engine, and it does not receive unrestricted control of the Farmer's capital.
ACTUAL EXECUTION
Shadow monitors the Farmer's portfolio and configured strategy, determines when a permitted action should occur, and submits the corresponding transaction through the Farmer's TBA. This is the component that actually moves capital when an authorized portfolio action is executed.
THE SAFETY BOUNDARY
The TBA authorization layer evaluates Shadow's requested action against permitted assets, approved contracts, allocation rules, transaction limits, trading restrictions, liquidation constraints, and other protocol-defined policies. If the request falls outside those boundaries, it must not execute.
AUTONOMOUS DOES NOT MEAN UNRESTRICTED
The owner retains control of the Farmer and can revoke Shadow's authorization. The current implementation is intentionally rule-driven: Shadow follows defined strategy and execution rules rather than independently inventing unrestricted investment decisions. The architecture allows greater sophistication to be introduced as real-world performance, behavioral, and execution telemetry provides evidence for doing so.
GROW YOUR FARM
A Farmer is not designed to be a static portfolio. Capital can be added over time, operating parameters can evolve, and the Farmer's performance develops as it continues operating within its strategy.
INCREASE FARM CAPITAL
Owners can add additional ETH to their Farmer as permitted by the protocol.
CHANGE THE OPERATING MODEL
Configurable strategy parameters allow the owner to change how the Farmer approaches its portfolio.
LET THE FARMER WORK
The Farmer continues operating autonomously rather than requiring constant manual portfolio management.
SEE HOW YOUR FARM DEVELOPS
Farmer performance can be evaluated against other Farmers operating with different personalities, strategies, and capital profiles.
EVERY FARMER IS DIFFERENT
There is no single Farmer configuration. Different personalities produce different asset universes, while different strategy settings create different operating behaviors. Capital size, allocation, risk, activity, and execution can therefore produce substantially different portfolio outcomes.
HIGH CONVICTION
A Farmer configured for higher risk and more active trading may behave very differently from a conservative Farmer operating with larger reserves and lower activity.
CAPITAL PRESERVATION
Another Farmer may prioritize lower risk, larger reserves, slower trading, and tighter portfolio management.
The resulting system creates a portfolio environment where each Farmer can develop differently. The objective is not to make every Farmer identical; it is to create a population of autonomous portfolios whose characteristics and operating parameters produce different results over time.
RESEARCH DRIVEN
Farmer personalities are based on established quantitative finance concepts and research methodologies. The research framework provides the conceptual basis for how different Farmer personalities approach portfolio construction and trading behavior.
THE FARMER LOOP
DERP FARMS combines generated on-chain identity, research-driven portfolio composition, configurable trading parameters, Token-Bound Accounts, and autonomous execution into a single Farmer system.
Asset availability is region-dependent. Stock-token positions are not available to every minter. In regions where the applicable Robinhood stock tokens are not permitted or available, the Farmer receives the defined $STONKBROKER, $DERP, and Ethereum fallback at 33% each. DERP FARMS actively monitors newly qualified regions and amendments to applicable laws and rules that may change supported asset availability.
PUT YOUR FARMER TO WORK
CONNECT YOUR WALLET
Connect the wallet associated with your Farmer to access its Farm interface and portfolio environment.
CONFIGURE YOUR FARMER
Review its personality, assigned assets, and strategy. Adjust the parameters available to you through the Farm interface.
FUND THE FARM
Add ETH to the Farmer's capital environment and allow the configured allocation system to determine how the crypto capital is deployed.
LET IT OPERATE
Your Farmer operates autonomously within its assigned assets, strategy parameters, and protocol constraints. Monitor how your farm develops over time.
PERSONALITY DETERMINES THE ASSET UNIVERSE. STRATEGY DETERMINES FINANCIAL BEHAVIOR. CAPITAL PROVIDES THE FUEL. SHADOW / TRACTOR EXECUTION RUNS THE FARM. PERFORMANCE TELLS THE STORY.