Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
This week, we cover a new DeFi innovation called Autopools, powered by Tokemak’s Autopilot. These pools are designed to simplify liquidity provisions (LPs) by autonomously rebalancing your positions across multiple DEXs and assets.
Providing liquidity in DeFi has always been a complex and time-consuming process for us as users. Factors like yield variance, trading fees, gas costs, and different AMM models make optimizing liquidity positions difficult. Tokemak’s Autopilot addresses these challenges by introducing Autopools, which remove the manual effort of rebalancing and compounding rewards. With Autopools, users can simply deposit their assets, and Autopilot takes over from there, rebalancing and optimizing positions for better yield across selected DEXs.
Autopools allow users to deposit assets into a pool, represented by yield-bearing tokens such as autoETH and autoLRT. From there, Autopilot continuously monitors the underlying pools, automatically rebalancing and compounding rewards back into the pool. This makes liquidity provision as simple as a single deposit, with no need for constant research or interaction with multiple protocols. Additionally, the receipt tokens (LATs) users receive are composable, meaning they can be used across other DeFi platforms for further yield or as collateral.
In the same way DEX aggregators made trading simpler by finding the best prices across multiple exchanges, Autopilot does the same for LPs by optimizing returns across multiple DEXs. By taking the complexity out of liquidity provisions, Autopools offer an easy, gas-optimized way for DeFi beginners and experienced users alike to earn yield efficiently. With just a few clicks, Autopilot ensures your liquidity is optimized—making LPs as simple as holding a token.
Today, I’ll cover how I can get started earning with one of the three newly launched Tokemak Autopools!
A New Way to LP: How to Deposit into Tokemak Autopools
Before we get started, please be aware of these risks.
- Smart contract risk in related apps including Tokemak, Curve, and Balancer
- Front-end spoof attack on any app frontend
- An economic design exploit
- Colluding signers on any multisig
- An underlying LRT depegging
- Systemic risk across DeFi
Here’s how I get started!
- First, I go to the Tokemak Autopilot app here and connect my Ethereum Mainnet wallet.
- Then, after examining the ETH derivatives involved (ie LSTs or LRTs), the underlying AMMs for sourcing the yield, and my preference for which yield to earn, I can choose an Autopool. In this example, I’ll choose autoLRT and click VIEW here to try and earn 31.87% net APR (~27% TOKE + ~4.87% base rate).
- I specify how much ETH to deposit, click DEPOSIT, and follow the prompts on my wallet to confirm my transaction.
That’s it! I can track my position here on the PORTFOLIO tab or withdraw from the Autopool anytime in the future.
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DeFi Dad is one of the earliest power users of DeFi, having worked with early Ethereum startups going back to 2018, including Zapper.
