BSC Portuguese AMA
AMA transcription and translation from BSC Portuguese session on 27-09-21
Autofarm is a yield aggregator that runs on multiple chains but originally launched on BSC on December 15 of 2020. Our goal is to deliver higher returns to our users by optimizing the compounding of token flows for different protocols (PancakeSwap, Alpaca, Belt, etc..). AF automatically compounds rewards into LPs and single tokens. All this is done by optimizing compounding intervals, pooling gas cost, and an automation algorithm. The result is an effectively higher APY to our users. One of the main advantages is the savings in gas fees (transactions costs) and the simplicity to operate. For the average investor, this would mean an increase in returns and more time to enjoy life. The user only needs to choose the investment strategy and AF will do the rest. Auto-compounding made SIMPLE!
AF has other great features like AutoSwap, a dex aggregator that optimizes swap execution through multiple liquidity sources instantaneously, resulting in better execution prices other than using only one dex (decentralized exchange). Our goal is to be a one-stop-shop for all the users DeFi needs while aiming for a seamless and user-friendly experience.
Q1:What are the competitive advantages of Autofarm in the yield farming scene?
A1: There are other yield aggregators out there, but what makes AF unique are:
- 1 we have a fee structure that is currently the lowest of all BSC (~3.4%) for our vault service.
- 2 We are unconditionally committed to the security audited by Certik and Slowmist, continuous and running bug bounty program with Immunefi. Recently accepted into the #priorityplan launched by BSC and doubled the amount offered by our bug reward program.
- 3 The most committed team
Add all this up and you can begin to understand why AF is unique and why we consider it our formula for success.
Q2: What can you do with AUTO? Can you explain tokenomics a little?
A2: Autofarm started with no pre-farm nor pre-sale. $AUTO started minting linearly on 15th of December 2020 and will end approximately around October 2021. There is a hard cap of 80k AUTOs to be minted, and with the burning mechanism implemented, we are in fact a deflationary token. More than 1.5k AUTO have already been burnt (forever atm), and more will be burned in the future. The idea is that Autofarm achieves sustainability through time, and we know infinite token inflation is not sustainable. We already identify a trend in other tokens for reducing emissions over time, so we thought it best to have a hard cap, and that fits us better.
Q3: How is revenue generated from the protocol? How can users be a part of it?
A3: Revenue is currently generated in two ways at the moment. Some of the fees from the vault system go to our Single Auto Vault (SAV), currently sitting at 2.5% of the yield generated. Also, our dex aggregator can generate fees for the SAV, we use several routing to achieve better rates. In the case we generate a surplus for getting even better trade rates of what we display on the FE, then that surplus goes to SAV. It’s kinda like the 1inch model, it’s not a % of the trade, it’s a win-win situation, users get better rates and if we do our job right then we can keep a small piece. We are always researching more ways to generate revenue for the protocol, so keep an eye out for future updates :)
Q4:I have seen Autofarm voting going on, can you explain to us a little more about governance?
A4: We started with governance voting two months ago! We have two mechanisms to distribute revenue amongst holders, burning tokens & Single Auto Vault. In both cases, fees are collected from the protocol and used to buyback AUTO tokens to burn or distribute onto the holders. We voted how the allocation for the burn and SAV was going to be for this month. Check more on that here: https://autofarm.gitbook.io/autofarm-network/governance/introduction and here: https://autofarm.network/voting/ This will be a monthly vote, so stay tuned for the next one and come join the discussion of how to allocate those fees in our protocol. We are also aiming to have more proposal comings and a proper voting system where concerned users can make proposals too.
Q5: I know you are not only a yield aggregator but a dex aggregator as well, can you share how this benefits the ecosystem and what it means?
A5: Well at Autofarm we like to auto-matize things so we designed a way to automatically get the best trades haha. A dex aggregator is essentially a swap that can search in multiple dex’s like Pancake, Bake, ACS, ellipsis, Jetswap, etc at the same time. It also calculates the optimal route to get you the best trade, so sometimes when you make a swap you can get better rates if you divide your swap into smaller pieces across multiple dex’s. This is done by an algorithm we designed in collaboration with a math wizard to guarantee you an optimal return :) AutoSwap will save you the hassle of doing the math for yourself and save you gas fees because you will be only paying 1 tx.
Q6:How do you go about deciding the tokens that get a vault or can be traded on Autoswap?
A6: Well, we have a curated list of vetted (safe) tokens, since there are a lot of fake ones out there and we want our users to share in our knowledge base. Nevertheless, we recently have added the option to add “custom tokens”, but it’s always the users who choose to import and engage with these ones.
Q7:Is BSC the only chain where Autofarm is present in? How do you plan for which chain to adopt next?
A7: We are a multi-chain protocol and we are present in several networks at the same time. Currently, besides BSC we are running on Polygon and Heco. We are also very close to releases in new chains, so keep an eye for announcements. What we like about these chains, like BSC, is the very low cost to operate, enabling us the possibility of multi-compounding of assets with low fees and Higher returns for our users. Also, chains like BSC and the ones we have been researching have strong institutional support, that creates an optimal environment for developers and communities to grow.
Q8:Can you tell us a little about what's coming next on the development side?
A8: Well, we have several things on the line coming. Besides the new chains we are currently trying to improve our product offering. We are very close to making AutoSwap available on multiple chains, at the moment it is only available on BSC and we have recently released it on Polygon. Developers are also working hard in AutoPortfolio, a product that connects both traders seeking to earn extra income and investors who simply want to earn passive income. AutoPortfolio is a platform where like-minded traders and investors will be able to connect with one another, learn from each others' trading patterns, and follow each others' trading strategies.
Q9: Can you share a little about the security measures you take in order to protect users funds?
A9: We have several measures in order to protect our users. As I mentioned before the multiple audits and bug bounty programs. We think this covers the basics that every major project should have yes or yes. Besides that, we partnered with some insurances protocols, so our users can purchase coverage from them if they are interested. Also, the team reviews each of the farms for sustainability, TVL, security and will also take a look at the results of any audits completed, we look carefully into who can have vaults on our site since security is of utmost importance. We prefer fewer vaults, but with safe contracts and good teams behind it. We also work very hard in our documents to educate our users not only in Autofarm related topics but in DeFi in general. Education is the key to ensure maximum protection for our users, in DeFi knowledge is power for sure!