V2: Tokemak Autopilot (Coming Soon)
Note: This is a preliminary working version of the Tokemak v2 docs - the full gitbook overhaul will be launched when the guarded launch concludes and Autopilot reaches its Open Launch (external deposits).
How does Autopilot work?
Autopilot is designed with the goal of continuously allocating an LP portfolio for long-term outperformance. This is achieved with the following key features:
Composite Return Metric: Autopilot input;
Rebalance Constraint: Gatekeeper for Rebalances;
Adaptive Rebalance Constraint: Self-learning control;
Solver: Off-chain component responsible for Rebalances;
The Composite Return Metric is a score associated with each destination integrated on Autopilot. This metric breaks down APRs into separate parts. As such, Autopilot has the flexibility of overweighting/underweighting different components for further optimization.
Additionally, the rebalance constraint is a gatekeeping condition for rebalances, which states that the expected return over the cost offset period needs to exceed the rebalance cost. It is worth noting that this is a self-learning mechanism with a variable cost offset period that adapts to different market environments.
Lastly, rebalances are handled by the Solver. This intent-based architecture has an off-chain component where solvers can propose rebalance solutions to the Autopilot contract, while an on-chain component checks if the proposed solution constitutes an improvement and does not violate imposed constraints.
What are the advantages of using Autopilot?
Effectively and profitably LPing is extremely challenging for most users due to its complexity and costliness. LPs must continuously monitor and evaluate numerous options and scenarios, a task that is exceedingly difficult to execute flawlessly. Moreover, active LPing entails gas fees, trading fees, and slippage, all of which diminish returns.
Tokemak’s Autopilot aims to be the new way to LP by automatically optimizing the deployments for its users.
What is the APR of the Autopool?
The long-term outperformance targeted by Autopilot is a result of the optimal allocations currently being validated during the guarded launch. Due to the limited set of options presented to the logic to optimize over, the APR is not a primary, significant metric during this phase.
As the number of assets and destinations grows Autopilot is expected to outperform any of its individual constituent combinations of assets and destinations.
What is the purpose of the guarded phase? (Live now)
The guarded phase is used to validate the integrity of the rebalance mechanics and the Autopilot logic. Furthermore an additional full-system audit is going hand-in-hand with this phase, which will conclude the pre-launch security checks.
When will Autopilot be available to LPs?
Security is of the utmost importance for Tokemak. Autopilot will launch, with a wider range of assets and destinations and a set of attractive speciality Autopilot pools, upon conclusion of the guarded phase, and most importantly after conclusion of the final full-system audit, which it is currently undergoing.
Where can I find more information on Autopilot?
Updated and detailed information on the protocol will be available before public launch. In the meantime, follow us on X and join the Discord community to stay up to date.
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