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Bank of Cronos is an AI powered DeFi protocol built on Cronos that enables autonomous interest rate hedging using smart contract based interest rate swap positions. It allows users to lock in fixed rates or speculate on rate movements while leveraging an AI agent that continuously monitors rates and provides forecasts, recommendations, and automated execution. Premium AI services are monetized through the Cronos x402 programmatic payments system, enabling pay per forecast and pay per execution pricing. The protocol is designed to take advantage of Cronos fast and low cost transactions, making hourly settlements practical and efficient. Bank of Cronos combines three core components. The first is an onchain interest rate swap protocol that manages positions, settlements, margin, liquidation, and rate aggregation. Positions are represented as NFTs and are settled on an hourly basis. The second component is an offchain AI agent service written in TypeScript that monitors market rates, generates predictions, recommends hedging strategies, and can execute positions on behalf of users when authorized. The third component is the x402 payment infrastructure, which enforces payment before access to premium AI services and handles verification and settlement using EIP 3009 style approvals. The system architecture consists of a Next.js frontend that provides a dashboard, AI agent interaction, position management, and an integrated x402 payment modal. The frontend communicates with smart contracts deployed on the Cronos EVM, an AI agent service that exposes HTTP endpoints, and a Cronos hosted x402 facilitator that verifies payments and settles fees. Smart contracts include modules for position management, settlement, rate oracles, risk management, and x402 payment gating and agent registration. The project repository is organized into three main parts. The contracts folder contains Solidity code for the core interest rate swap protocol, integrations with lending and decentralized exchange components, oracle and risk modules, adapters, and x402 specific contracts, along with deployment scripts and tests. The agent folder contains the AI agent server with modules for rate monitoring, forecasting, execution, and x402 handling. The frontend folder contains the Next.js application, UI components, and client side blockchain integration. To run the project, developers set up Node.js and Foundry, configure environment variables, obtain Cronos testnet tokens, deploy the smart contracts to the Cronos testnet, start the AI agent server, and then run the frontend application locally. Once deployed, users can interact with the protocol through the web interface and access AI services via protected API endpoints. The x402 payment flow requires users to sign a payment authorization before accessing premium endpoints. After verification by the facilitator, the requested service is delivered. Pricing is defined per service, with separate fees for rate forecasts, strategy recommendations, and automated execution, including a small percentage based execution fee. Bank of Cronos targets multiple hackathon tracks, including the main x402 and AI agent track, an AI driven finance solution track, and the best Cronos ecosystem integration track. The tech stack includes Solidity with Foundry and OpenZeppelin for smart contracts, TypeScript and Express for the AI agent, Next.js and wagmi for the frontend, and the Cronos x402 facilitator with EIP 3009 for payments. The project is released under the MIT license and was built for the Cronos x402 Paytech Hackathon 2026.