Introduction
Note: updates to the docs (layout/structure, edits, etc) may come within the next few weeks, so check back frequently.
Autopilot is currently in a Guarded Launch Phase - during this phase, only Tokemak treasury assets will be deployed through Autopilot. Once the system has been sufficiently validated, it will open for external deposits. The full system audit conducted by Hexens is expected to conclude soon.
Why Develop Autopilot?
Providing liquidity, particularly to correlated trading pairs such as ETH LSTs/LRTs and stablecoins, remains one of, if not the best, way to earn additional yield on your assets.
Tokemak's Autopilot was developed to address the many challenges liquidity providers (LPs) face when optimizing for best performance. No protocol currently offers fully autonomous, transparent and sophisticated rebalance solution focused solely on liquidity provision.
This dedicated approach offers great value not only to LPs, but also to a wide range of other ecosystem participants.
The Status Quo for LPs
Liquidity providers (LPs) face a highly complex decision-making process when seeking to optimally rebalance their LP positions. It requires an LP to account for a complex set of factors, including but not limited to:
variance of yields and their composition;
different fee and reward systems;
offsetting various costs such as gas, slippage, and trading fees;
different AMM models.
Differentiating between AMM models warrants highlighting, as its complexity is an often neglected core challenge of manual liquidity provision. Additional factors complicating the process include the significant amount of time LPs must spend researching opportunities and interacting with multiple protocols, making the process time-consuming and cumbersome. Even without considering these problems, the high costs of rebalancing and compounding often lead to underperformance and can prevent LPs from participating altogether.
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