Frequently Asked Questions

Why Binance Smart Chain (BSC)?

Owing to the high gas fees and rising ethereum prices, decentralised finance (DeFi) has been increasingly difficult, slow, and painful for small retail investors. BSC serves the role of enhancing the existing user experience for DeFi users given that it is EVM (Ethereum Virtual Machine) compatible and has a block time of approximately ~ 3 seconds. Meaning to say, BSC transactions are faster and cheaper while still maintaining the ability to interact with smart contracts.

Moving forward as planned in the team's roadmap, Autofarm will be developing cross-chain vaults and DEX aggregators on network chains that are feasible and prove to be reliable, cheap, and fast for its DeFi users. These network chains include Huobi Eco Chain (HECO), Kusama, Polkadot, and xDai.

Is Autofarm safe to use?

As mentioned in the risks section, Autofarm has several measures to mitigate smart contract risks. We've mitigated this risk by equipping all smart contracts with 24hr time-locks (except $AUTO rewards multiplier at 12hrs) and having reputable auditors audit the entire project.

Audit reports

Autofarm users can also purchase insurance to safeguard against smart contract failure and potential exploits with Soteria. (Details on how to do so can be found here). In addition, Autofarm has also partnered with CertiK to implement CertiKShield as a safeguard against potential theft or lost funds. Lastly, Autofarm is pledging the 3% gas rebates which we will receive from the monthly Binance BUIDL Reward Program to set-up an Autofarm SAFU fund to be used for reimbursements in the event of exploits or loss of funds.

Moving forward, the team plans to build a treasury fund that can be used to fund more external audits of the protocol (subject to the agreement by the community – governance). Additionally, you can show your support for Autofarm by upvoting us on DefiYieldInfo for a complimentary audit from the community.

What does the multiplier number beside the BSC vaults mean?

Put simply, the multiplier number (in this case 9.5x) refers to the amount of $AUTO tokens allocated as distribution with respect to all the other BSC vaults with other multiplier numbers. Meaning to say, a vault with a higher multiplier number is allocated a higher number of $AUTO tokens as compared to a vault with a lower multiplier number.

At present, emission rates are at 0.008 $AUTO/block (which is about 230.4 $AUTO daily) and are due to end in approximately October 2021 when the maximum supply reaches 80,000. (You can refer to our tokenomics here).

Why is my deposited balance fluctuating?

Considering vault strategies it is possible you´ll see your deposited assets decreasing and increasing slightly over time. This occurs, for example with Venus vaults, when interest is paid to borrowing positions that later will be compensated with the farm of XVS. Usually, in a couple of hours, the user can see how the deposited asset returns to normal.

Since it is the same asset that is lent and borrowed several times the liquidation risk is practically none. Autofarm contracts are designed to optimize the yield without ever getting to the liquidation point and are not affected by price spikes.