How It Works

Understand the architecture before you build. This page explains what happens when you connect your code to Daemo.

The Three Components

Every Daemo project has three parts:

💻

Your Code

TypeScript/JavaScript functions running in your environment (local machine, server, cloud function, etc.)

• You write the business logic
• Functions stay in your repo
• Your data never leaves your control

🔌

Daemo SDK

The daemo-engine package that connects your functions to the Daemo Engine.

• Registers function metadata
• Establishes secure connection
• Handles function invocation

☁️

Daemo Platform

The app.daemo.ai dashboard and AI engine.

• Agent management
• AI reasoning (Two-Phase Engine)
• Playground for testing

The Connection Flow

When you run your Daemo service, here's what happens:

┌─────────────────────────────────────────────────────────────────────────┐
│                           YOUR ENVIRONMENT                              │
│  ┌─────────────────────────────────────────────────────────────────┐   │
│  │  Your Code (index.ts)                                           │   │
│  │  ┌──────────────────┐  ┌──────────────────┐                     │   │
│  │  │ CalculatorFuncs  │  │ CRMFunctions     │  ← Your functions   │   │
│  │  │ - power()        │  │ - getContacts()  │                     │   │
│  │  │ - add()          │  │ - createDeal()   │                     │   │
│  │  └──────────────────┘  └──────────────────┘                     │   │
│  │            │                   │                                 │   │
│  │            ▼                   ▼                                 │   │
│  │  ┌─────────────────────────────────────────────────────────┐    │   │
│  │  │              DaemoBuilder + registerService()           │    │   │
│  │  │    Extracts: function names, descriptions, I/O types    │    │   │
│  │  └─────────────────────────────────────────────────────────┘    │   │
│  │                            │                                     │   │
│  └────────────────────────────│─────────────────────────────────────┘   │
│                               │                                         │
│                               │ gRPC (secure tunnel)                    │
└───────────────────────────────│─────────────────────────────────────────┘
                                │
                                ▼
┌─────────────────────────────────────────────────────────────────────────┐
│                         DAEMO PLATFORM                                  │
│  ┌─────────────────────────────────────────────────────────────────┐   │
│  │  Daemo Engine                                                   │   │
│  │  ┌──────────────────┐  ┌──────────────────┐                     │   │
│  │  │ Function Registry│  │ Two-Phase Engine │                     │   │
│  │  │ • Metadata       │  │ • Query Analysis │                     │   │
│  │  │ • Types          │◄─┤ • Tool Selection │                     │   │
│  │  │ • Descriptions   │  │ • Execution      │                     │   │
│  │  └──────────────────┘  └──────────────────┘                     │   │
│  └─────────────────────────────────────────────────────────────────┘   │
│                                                                         │
│  ┌─────────────────────────────────────────────────────────────────┐   │
│  │  app.daemo.ai Dashboard                                         │   │
│  │  • View registered services & functions                         │   │
│  │  • Test in Playground                                           │   │
│  │  • View logs & analytics                                        │   │
│  └─────────────────────────────────────────────────────────────────┘   │
└─────────────────────────────────────────────────────────────────────────┘

What Gets Sent to Daemo?

When your service starts, the SDK sends metadata only — not your code:

Sent to Daemo	NOT Sent
Function names	Your source code
Descriptions (from decorators)	Your business logic
Input/output type definitions	Your data
Service name	Your environment variables

Note

Your code runs locally. When AI needs to call a function, Daemo sends a request to your running service. The function executes in your environment and returns the result.

The Runtime Flow

When a user asks a question in the Playground (or via API):

1User asks: "What's 2 to the power of 10?"

2Daemo's Two-Phase Engine analyzes the query

3Engine selects power() function based on description

4Request sent to your running service: {a: 2, b: 10}

5Your function executes locally, returns {result: 1024}

6AI formats response: "2 to the power of 10 is 1024"

Key Concepts

Services

A service is a collection of related functions. You might have:

• CRMService with contact and deal functions
• AnalyticsService with reporting functions
• NotificationService with email/SMS functions

Each service has its own system prompt that guides the AI on how to use its functions.

Tools (Functions)

Tools are individual functions decorated with Daemo metadata. The decorators tell the AI:

• What the function does (@Description)
• What inputs it expects (@Input)
• What it returns (@Output)

Agents

An agent on app.daemo.ai can have multiple services connected. Think of it as the "brain" that orchestrates all your functions.

Why This Architecture?

🔒 Secure

Your code and data stay in your environment

🚀 Flexible

Run anywhere — laptop, server, Lambda, etc.

🔄 Live Updates

Change functions, restart service, instantly updated

📊 Observable

Dashboard shows all registered functions in real-time

Next Steps

Now that you understand the architecture:

• Installation — Set up your project
• Defining Tools — Learn the decorator syntax