PACE: Policy-Attested Contract Execution for Safe AI Agents in Decentralized Finance

Autonomous AI agents are emerging as interfaces for decentralized finance (DeFi) actions such as swaps, lending operations, and yield management. Because these agents rely on large language models (LLMs) to plan transactions, they inherit the LLM's susceptibility to prompt injection and lack of mechanisms to bind a verifier's approval to the exact transaction ultimately submitted on-chain. We present PACE (Policy-Attested Contract Execution), a transaction-level authorization framework that interposes between an LLM-based agent and on-chain execution. PACE introduces typed transaction intents, a deterministic policy verifier, and signed Policy Decision Records (PDRs) that cryptographically bind the approved intent, policy, and simulation report to the exact execution bytes, with replay and expiration protection. A Solidity smart account enforces PDR signatures on-chain with a measured overhead of 29,826-31,822 gas. We evaluate PACE against six baselines on 40 tasks spanning four attack categories plus benign utility (2,800 trials, 10 seeds). In our deterministic sandbox, PACE achieves a 0.00 unsafe execution rate and 0.00 false-positive rate on benign tasks, compared to 0.80 for the unguarded baseline. Ablation studies identify permissive policy settings (+57.5 pp) and the touched-contract allowlist (+12.5 pp) as the dominant safety components. To test whether the same deterministic floor holds for real model outputs, the artifact additionally provides a three-model live-LLM evaluation over the full task suite with repeated runs. A mainnet-fork harness is included for archive-RPC deployments, but fork results are reported only when the corresponding artifacts are generated. These auxiliary studies are separate from, and never substitute for, the deterministic benchmark. We frame our claims as logic-level safety within a reproducible benchmark rather than deployment-ready DeFi security.

Cardinality-Decomposed Loss: Matching Training Objectives to Relation Structure in Heterogeneous Recommendation Graphs

Graph Neural Networks trained on heterogenous bipartite graphs form a common basis in recommendation systems. These graphs often express relations that vary in cardinality, for example, user-item preferences are one-to-many and user-attribute features are one-to-one. Traditionally, a unique loss function is applied for all of the network components which is often Bayesian Personalized Ranking (BPR). While BPR works well for the recommendation task, we find that it causes attribute embeddings to collapse to near-random geometry -- a silent failure that leaves standard ranking metrics largely unaffected and therefore invisible to conventional evaluation. This in turn pollutes user node embeddings, which are shaped by both edge types simultaneously, hurting downstream tasks like personalization, segmentation, etc. Here we propose a Cardinality-Decomposed Loss (CDL) that combines both Cross Entropy (CE) and BPR to enable the model to collectively optimize for relations across cardinalities. We confirm this CE-BPR conflict by showing the two losses compete in the shared encoder's parameter space. We evaluate CDL on five datasets spanning two structural configurations -- one-to-one attributes on user nodes (MovieLens-1M, Last.fm-360K, PayPal Audience Factory, BookCrossing) and on item nodes (Yelp) -- and find that CDL consistently improves discriminability in attribute embeddings. We also show that ranking (NDCG) improves when attributes carry meaningful preference signal, but conflicts with it when the correlation is weak. We use a lambda parameter to navigate this trade-off, and a lambda-sweep reveals that dataset behavior is governed by two graph properties -- semantic alignment and topology leakage. Semantic alignment measures whether the attribute predicts preferences, while topology leakage measures whether the graph's connectivity already encodes it.

Rehearsed Multi-Agent Live Product Demonstrations with Real-Time Voice Question Answering

Live product demonstrations are a recurring, high-cost activity in software organizations: a human presenter must select features, dispatch the corresponding interactions on a running application, narrate them coherently, and answer questions in real time. Existing automation addresses only fragments -- generalist browser agents target instruction-conditioned task completion, and demo-video tools produce fixed MP4 artifacts that cannot be questioned and silently break under interface drift. We propose Rhetor, a multi-agent system that takes a running web application and its source-code repository as input and produces a rehearsed live demonstration with segment-synchronized narration and real-time voice question answering. The architectural contributions are a cross-modal feature representation that merges UI exploration with source-code analysis into features tagged with discrete focus tiers, a grounded scripter constrained to UI elements observed during exploration and dispatched through multi-strategy semantic locators, a pre-presentation rehearsal loop with explicit convergence and graceful degradation to narration-only segments, and a runtime synchronization invariant that ties each browser action to the audio-end event of its narration segment. Across six pipeline sessions on four deployed applications -- including the public-domain whiteboard application Excalidraw -- the rehearser's internal locator-firing rate (sigma-bar) spans 0.31-1.00 over 147 scripted actions; on the substantial workload (53 actions, full tier differentiation), sigma-bar is approximately 0.92, and on the public-domain reference point the locator-repair step drives convergence to sigma-bar = 1.00 at iteration 2. We additionally define a benchmark protocol of ten metrics across six application categories that would establish, beyond the case study, whether each design choice contributes positively.

State-Grounded Multi-Agent Synthetic Data Generation for Tool-Augmented LLMs

Training tool-augmented LLM agents requires large corpora of multi-turn, tool-grounded conversational data that is expensive to annotate, privacy-constrained in production settings, and largely absent from public datasets. We present StateGen, a synthetic data generation platform that produces scored, reasoning-trace-rich training conversations by orchestrating a four-role LLM loop: a persona-conditioned user simulator, an agent under test, a state-grounded tool simulator, and a multi-axis LLM judge. The key architectural contribution is an authoritative state manager that maintains a structured world-state object across turns, enforcing a backend-is-truth invariant that eliminates the dominant class of tool-call hallucinations by construction. StateGen extends naturally to hierarchical multi-agent settings by declaring sub-agents as tools, all sharing a single state object. We report results on 64,698 evaluated conversations across three production corpora: tool-call hallucination scores reach 9.66/10, the system supports persona-driven variation via a 23-dimensional trait vector, and a cleanly separated train and golden evaluation set split confirms the data is not memorization bait (per-criterion gap analysis). Comparison with eight external systems shows that no single publicly available platform combines multi-turn generation, state-grounded tool simulation, hierarchical multi-agent support, and built-in judge scoring.

Ada-RS: Adaptive Rejection Sampling for Selective Thinking

Large language models (LLMs) are increasingly being deployed in cost and latency-sensitive settings. While chain-of-thought improves reasoning, it can waste tokens on simple requests. We study selective thinking for tool-using LLMs and introduce Adaptive Rejection Sampling (Ada-RS), an algorithm-agnostic sample filtering framework for learning selective and efficient reasoning. For each given context, Ada-RS scores multiple sampled completions with an adaptive length-penalized reward then applies stochastic rejection sampling to retain only high-reward candidates (or preference pairs) for downstream optimization. We demonstrate how Ada-RS plugs into both preference pair (e.g. DPO) or grouped policy optimization strategies (e.g. DAPO). Using Qwen3-8B with LoRA on a synthetic tool call-oriented e-commerce benchmark, Ada-RS improves the accuracy-efficiency frontier over standard algorithms by reducing average output tokens by up to 80% and reducing thinking rate by up to 95% while maintaining or improving tool call accuracy. These results highlight that training-signal selection is a powerful lever for efficient reasoning in latency-sensitive deployments.

Toward Scalable Verifiable Reward: Proxy State-Based Evaluation for Multi-turn Tool-Calling LLM Agents

Interactive large language model (LLM) agents operating via multi-turn dialogue and multi-step tool calling are increasingly used in production. Benchmarks for these agents must both reliably compare models and yield on-policy training data. Prior agentic benchmarks (e.g., tau-bench, tau2-bench, AppWorld) rely on fully deterministic backends, which are costly to build and iterate. We propose Proxy State-Based Evaluation, an LLM-driven simulation framework that preserves final state-based evaluation without a deterministic database. Specifically, a scenario specifies the user goal, user/system facts, expected final state, and expected agent behavior, and an LLM state tracker infers a structured proxy state from the full interaction trace. LLM judges then verify goal completion and detect tool/user hallucinations against scenario constraints. Empirically, our benchmark produces stable, model-differentiating rankings across families and inference-time reasoning efforts, and its on-/off-policy rollouts provide supervision that transfers to unseen scenarios. Careful scenario specification yields near-zero simulator hallucination rates as supported by ablation studies. The framework also supports sensitivity analyses over user personas. Human-LLM judge agreement exceeds 90%, indicating reliable automated evaluation. Overall, proxy state-based evaluation offers a practical, scalable alternative to deterministic agentic benchmarks for industrial LLM agents.

MCPShield: A Security Cognition Layer for Adaptive Trust Calibration in Model Context Protocol Agents

The Model Context Protocol (MCP) standardizes tool use for LLM-based agents and enable third-party servers. This openness introduces a security misalignment: agents implicitly trust tools exposed by potentially untrusted MCP servers. However, despite its excellent utility, existing agents typically offer limited validation for third-party MCP servers. As a result, agents remain vulnerable to MCP-based attacks that exploit the misalignment between agents and servers throughout the tool invocation lifecycle. In this paper, we propose MCPShield as a plug-in security cognition layer that mitigates this misalignment and ensures agent security when invoking MCP-based tools. Drawing inspiration from human experience-driven tool validation, MCPShield assists agent forms security cognition with metadata-guided probing before invocation. Our method constrains execution within controlled boundaries while cognizing runtime events, and subsequently updates security cognition by reasoning over historical traces after invocation, building on human post-use reflection on tool behavior. Experiments demonstrate that MCPShield exhibits strong generalization in defending against six novel MCP-based attack scenarios across six widely used agentic LLMs, while avoiding false positives on benign servers and incurring low deployment overhead. Overall, our work provides a practical and robust security safeguard for MCP-based tool invocation in open agent ecosystems.

NEMO-4-PAYPAL: Leveraging NVIDIA's Nemo Framework for empowering PayPal's Commerce Agent

We present the development and optimization of PayPal's Commerce Agent, powered by NEMO-4-PAYPAL, a multi-agent system designed to revolutionize agentic commerce on the PayPal platform. Through our strategic partnership with NVIDIA, we leveraged the NeMo Framework for LLM model fine-tuning to enhance agent performance. Specifically, we optimized the Search and Discovery agent by replacing our base model with a fine-tuned Nemotron small language model (SLM). We conducted comprehensive experiments using the llama3.1-nemotron-nano-8B-v1 architecture, training LoRA-based models through systematic hyperparameter sweeps across learning rates, optimizers (Adam, AdamW), cosine annealing schedules, and LoRA ranks. Our contributions include: (1) the first application of NVIDIA's NeMo Framework to commerce-specific agent optimization, (2) LLM powered fine-tuning strategy for retrieval-focused commerce tasks, (3) demonstration of significant improvements in latency and cost while maintaining agent quality, and (4) a scalable framework for multi-agent system optimization in production e-commerce environments. Our results demonstrate that the fine-tuned Nemotron SLM effectively resolves the key performance issue in the retrieval component, which represents over 50\% of total agent response time, while maintaining or enhancing overall system performance.

Pivoting Retail Supply Chain with Deep Generative Techniques: Taxonomy, Survey and Insights

Generative AI applications, such as ChatGPT or DALL-E, have shown the world their impressive capabilities in generating human-like text or image. Diving deeper, the science stakeholder for those AI applications are Deep Generative Models, a.k.a DGMs, which are designed to learn the underlying distribution of the data and generate new data points that are statistically similar to the original dataset. One critical question is raised: how can we leverage DGMs into morden retail supply chain realm? To address this question, this paper expects to provide a comprehensive review of DGMs and discuss their existing and potential usecases in retail supply chain, by (1) providing a taxonomy and overview of state-of-the-art DGMs and their variants, (2) reviewing existing DGM applications in retail supply chain from a end-to-end view of point, and (3) discussing insights and potential directions on how DGMs can be further utilized on solving retail supply chain problems.