Optimal Contracts

Our Mission

Every exchange of value, every contract in the economy is affected by the Principal-Agent problem: the provider (the Agent) of a product, such as a good, a service, or a liability is better informed about the product than the recipient (the Principal) of the product.  The provider may use his informational advantage to ensure that the settlement is in his favour, resulting in a net loss of value for the recipient. The lack of transparent information and incentives reduces the market efficiency associated with these contracts and sometimes leads to market failure.

Our mission is to develop a systematic solution to this problem across all industries, by building Optimal DAO. In 2022, we founded Optimal Contracts AG in Zug, Switzerland, in the heart of the famous crypto valley to build step by step all the missing pieces of this ecosystem.

Optimal DAO

Optimal DAO solves the Principal-Agent problem in all exchanges of value for the recipients who become our members. We achieve Pareto optimality for our members through the development of industry-specific Optimal DApps. These are powered by a revolutionary and patent-pending technology called Optimal Smart Contracts, based on blockchain & AI technologies applied to contract theory.

1. Our approach starts by tackling the industry-specific Oracle problem head on, leveraging AI and distributed sources of truth about the product and utility functions of both providers and members.

2. Next, we deploy our radically innovative, Optimal Smart Contract Resolution Algorithm (OSCRA) to optimise real-world contracts that minimise recipient loss while still considering the provider’s interests, generating optimal incentive mechanisms between providers and members.