Automated Agent
Software that autonomously performs tasks, including digital asset transactions.
What is Automated Agent?
An automated agent is a software entity, such as an AI or bot, that independently performs tasks like accessing resources or executing digital asset transactions. In the x402 ecosystem, agents built with Cloudflare’s Agents SDK can interpret HTTP 402 responses, process payment instructions, and complete transactions using digital wallets (e.g., funded with Testnet USDC). Examples include agents purchasing data feeds or paying for tool usage, enhancing automation in agentic commerce.
Related Terms
Wisdom of the Crowds
The phenomenon where the collective judgment of a diverse group often surpasses individual or expert predictions.
Open Interest
The total value of outstanding perpetual swap contracts on a Perp DEX.
Loan-to-Value Ratio (LTV)
The ratio of a loan’s value to the value of its collateral in DeFi lending.
Liquidation (Lending)
The automated sale of a borrower’s collateral when its value falls below a protocol’s required threshold.
Liquidation
The process in DeFi where assets from an under-collateralized loan are sold to repay the borrowed amount, typically triggered automatically by smart contracts when collateral value falls below a required threshold.
Margin Call (Lending)
A notification to borrowers to add collateral or repay part of a loan to restore a safe LTV ratio.