AERLY Protocol
Technical Whitepaper

1.1 Background

The decentralized finance (DeFi) ecosystem has experienced exponential growth, with Solana emerging as a leading blockchain platform for high-performance applications. However, as network activity increases, users face challenges including transaction delays, failed transactions, and suboptimal execution prices due to MEV extraction.

1.2 Vision

AERLY envisions a future where blockchain transactions are executed with the speed and reliability of traditional financial systems while maintaining the decentralization and transparency that define Web3.

1.3 Mission

Our mission is to democratize access to high-performance transaction execution. By building open infrastructure that anyone can use, we aim to level the playing field between retail users and sophisticated traders.

2.1 Transaction Execution Challenges

Despite Solana's high throughput capabilities, users frequently encounter execution challenges during periods of network congestion:

• Transaction failures due to network congestion
• Suboptimal execution prices from frontrunning
• Unpredictable priority fees
• Lack of transaction status visibility

2.2 MEV Extraction Impact

Maximal Extractable Value (MEV) represents a significant challenge for DeFi users. Sophisticated actors can observe pending transactions and strategically order their own transactions to extract value from other users.

3.1 Core Protocol Components

AERLY introduces a comprehensive solution stack that addresses each of the identified challenges:

3.2 Key Innovations

• Predictive Fee Modeling

  ML models predict optimal priority fees, reducing costs by up to 40%.

• Transaction Batching

  Intelligent batching of multiple operations into single transactions.

• Private Transaction Pool

  Secure submission channel that bypasses public mempool.

4.1 System Overview

The AERLY protocol consists of three primary layers: Interface Layer, Processing Layer, and Execution Layer.

┌────────────────────────────────────────┐
│           INTERFACE LAYER              │
│  ┌──────────┐ ┌──────────┐ ┌────────┐ │
│  │ REST API │ │WebSocket │ │  SDK   │ │
│  └──────────┘ └──────────┘ └────────┘ │
├────────────────────────────────────────┤
│          PROCESSING LAYER              │
│  ┌──────────┐ ┌──────────┐ ┌────────┐ │
│  │  Signal  │ │   MEV    │ │  Gas   │ │
│  │  Engine  │ │  Shield  │ │Optimize│ │
│  └──────────┘ └──────────┘ └────────┘ │
├────────────────────────────────────────┤
│           EXECUTION LAYER              │
│  ┌──────────┐ ┌──────────┐ ┌────────┐ │
│  │  Router  │ │Validator │ │Settle  │ │
│  └──────────┘ └──────────┘ └────────┘ │
└────────────────────────────────────────┘
                    │
                    ▼
          ┌─────────────────┐
          │  SOLANA NETWORK │
          └─────────────────┘

4.2 Signal Engine Architecture

The Signal Engine processes real-time data streams with the following stages:

1. Data Ingestion: Sub-millisecond latency collection
2. Signal Detection: Pattern recognition
3. Risk Assessment: Real-time risk scoring
4. Signal Emission: Formatted broadcasts

4.3 MEV Protection Mechanism

AERLY Protocol is governed by a DAO that empowers token holders to shape the future of the protocol.

5.1 Governance Process

5.2 Governance Scope

• Protocol fee structures
• Treasury fund allocation
• Protocol upgrades
• Partnership approvals
• Emergency actions

AERLY is built by experienced blockchain developers, DeFi researchers, and infrastructure engineers.

AERLY Protocol represents a significant advancement in blockchain transaction infrastructure. By combining ultra-low latency execution, comprehensive MEV protection, and intelligent gas optimization, we are building the foundation for the next generation of decentralized applications.

We invite developers, traders, and enthusiasts to join us in building a more efficient and equitable decentralized future.