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  • Autopilot
    • Introduction
    • A New Way to Provide Liquidity
    • Protocol Mechanics
      • Components & Logic
      • Asset Flow Example
    • Autopools & LATs
    • Staking TOKE
    • Custom Autopools
    • Glossary
  • USING THE APP
    • App Guide
      • Autopools
        • Deposit and Withdraw
        • Stake and Unstake
        • Claim Incentives
        • View Positions
      • Staking TOKE
        • Stake and Allocate
        • Unstake and Withdraw
        • View Positions
        • Claim Rewards
      • Toke/ETH LP
      • Guarded Launch Rewards
    • With Wallet Services
      • Fireblocks
    • Troubleshooting
  • Developer Docs
    • Contracts Overview
      • Autopool ETH Contracts Overview
        • Autopilot System High Level Overview
        • Autopilot Contracts and Systems
          • Autopilot Contract Security
          • Stats
          • Autopilot Strategy
          • Pricing
          • Swap Router
          • Curve Resolver
          • Message Proxy
          • accTOKE
          • Autopilot Router
          • Liquidation
          • Destination Vaults
          • Autopools
        • Autopilot Contracts Glossary
      • Contract Addresses
    • Security and Audits
      • Hexens: autoUSD March 25th 2025
      • Hexens: Autopilot Follow Up/Updates Audit July 2024
      • Hexens: Tokemak Autopilot May 2024
      • Certora: LMPStrategy Security Assessment & Formal Verification Report - Jan/March 2024
      • Hats.Finance, Crowd Competition Smart Contract Audit, February - March 2024
      • Halborn - Autopilot (Autopools) Contracts - Preliminary Smart Contract Audit - Sept 2023
      • Halborn - Autopilot Pricing Contracts - Formal Verification Report - Sept 2023
      • Sherlock - Autopilot Contracts - Crowd Competition - Sept 2023
      • Halborn - accTOKE Contract - Nov 2022
    • Integrating
      • 4626 Compliance
      • Large Withdrawals
      • Checking for Stale Data
  • Additional Links
    • Community Resources
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  • Why Develop Autopilot?
  • The Status Quo for LPs

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  1. Autopilot

Introduction

Why Develop Autopilot?

Providing liquidity in DeFi, particularly to correlated trading pairs such as ETH LSTs/LRTs and stablecoins on decentralized exchanges (DEXs), or to lending markets like AAVE, Fluid, and Morpho, can be an extremely efficient onchain way to earn additional yield on one's assets. Despite this, it comes with many complexities to achieve that efficiency. 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, making LP accessible.

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.

NextA New Way to Provide Liquidity

Last updated 1 month ago

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