# Architecture At the core of Fathom Vaults' architecture are the smart contracts that handle vault operations, strategy implementation, and interactions with the FXD stablecoin. Here is a simplified view of the system: 1. **User Interface (UI):** Web3 compatible interfaces that allow users to interact with vaults, deposit and withdraw funds, and participate in governance. 2. **Smart Contracts:** * **Vault Contracts:** Manage the deposits, withdrawals, and allocation of funds to various strategies. * **Strategy Contracts:** Execute specific investment protocols, manage performance, and handle rewards distribution. * **Governance Contracts:** Facilitate voting and administrative functions driven by community governance. 3. **Off-Chain Data Storage:** Utilizes Graph Node and Subgraphs for indexing and querying blockchain data efficiently, enhancing the responsiveness and scalability of the platform. 4. **Off-Chain Services:** The Reports Processor automates the report processing for vault strategies. Monitoring & Risk Management AI Agents and Monitoring Systems bring more reliability and capital efficiency to the vaults and strategies. 5. **API Gateway:** Offers a seamless connection between the frontend and smart contracts, facilitating data flow and transaction execution across the platform. 6. **FXD Stablecoin:** FXD is the backbone of the Fathom Vaults ecosystem, designed to mitigate price volatility and provide a reliable medium of exchange. Vaults allow FXD holders to invest in various on-chain and off-chain products leveraging their portfolio. 7. **AI Agents:** They work for users and vault managers. On the user side, they allow users to structure the vaults' portfolio. For vault managers, they offer help structuring the strategies' allocations.