Autofarm Review

What is Autofarm?

Autofarm is a DeFi platform offering both DEX aggregation and yield optimization across different blockchains. The protocol was initially launched on Binance Smart Chain in 2020 and then expanded across 15 EVM-compatible networks namely Polygon, Avalanche, Fantom, Moonriver, CELO, Cronos, Huobi ECO Chain, etc. 

Autofarm users can benefit from the two main products of the ecosystem – Autofarm Vaults, which is a yield farming optimization tool, and AutoSwap - a DEX aggregator. 

Autofarm’s native token AUTO can be earned through yield farming and used for collecting platform fees and governance of the protocol. 

How does Autofarm work?

AutoFarm Vaults is a yield optimizer, which implements various automated farming strategies depending on the network. The platform has integrated 477 vaults so far, each offering different farming strategies. Once the assets are deposited into the vaults, Autofarm will search for the best farming opportunities across various protocols along with auto-compounding and reinvesting features to achieve the most efficient capital return. Compounding occurs on a daily basis, reaching a frequency of up to 170 times per day for certain vaults.

Users of Autofarm’s vaults can also earn Autofarm’s native token AUTO, on top of what they already earn from yield farming. Vaults on Autofarm each have a unique AUTO multiplier, that determines the amount of AUTO distributed accordingly. Not all vaults are earning AUTO tokens. 

Autofarm prides itself on offering the lowest fees on the market, which has been made possible through optimization of gas costs during compounding by pooling together user deposits. 

There are a variety of different fees Autofarm collects, such as a 0.4% Controller Fee to cover gas costs for auto-compounding, a 0,5% platform fee that goes to the treasury, a one-off deposit fee making up less than 0.1% of users’ initial capital,  as well as a Vault fee which is set at either 1.5% for vaults that yield AUTO tokens, used to buyback and burn AUTO, and 3.0% for Vaults that don't yield AUTO tokens. 

Another 1% vault fee is collected to reward stakers of the Single AUTO vault on the BSC network. Single AUTO vault yields more AUTO tokens through the distribution of protocol revenue. Staked AUTO tokens have a seven-day lockup period. 

AutoSwap is an Automated Money Maker currently available on BNB, Polygon, Avalanche, and Cronos. This is a decentralized exchange aggregator, which splits the trade across several DEXes in order to find the best prices for the swap based on available liquidity and the lowest slippage.

AutoFarm also has an onboarding program for new projects named AutoAmplify.  Any project from a network supported by Autofarm or any EVM-compatible chain that wishes to be listed on Autofarm can apply for the partnership program. The users can benefit from Amplified vaults which give additional vault rewards in the form of the native reward token of the newly onboarded project. In addition, users can take part in trading competitions on AutoSwap to get reward tokens airdropped once again in the form of a native reward token of the newly onboarded project. The more swaps users make, the higher are their score points. 

How to use Autofarm?

Before proceeding with the Autofarm app, it is first required to connect a wallet and have some native tokens (depending on the blockchain) to pay the gas fees. The list of wallets Autofarm supports includes Metamask, Binance Chain Wallet, Coinbase wallet, Clover Wallet, and Crypto.com wallet. 

For farming, a user needs to navigate to the Vaults section, where the main page reflects the entire lists of available vaults along with their APY and daily APR. Users can apply filters to choose from single assets, LP assets, stable coins, stablecoins LP, or Amplifier vaults, as well as choose the preferred DEX. 

After choosing the vault to lock the assets, the user can view the Vault Details, APY Calculations, and fees. Then, it is required to enter the number of tokens to be locked and confirm the operation by paying the gas fee. 

AUTO, the native token of Autofarm, is produced at a rate of 0.008 AUTO per block. Once the user reaches the required criteria to obtain AUTO by farming tokens through participation in vaults, it will be automatically credited into the vault as AUTO Rewards. 

For staking AUTO tokens, users need to choose ‘Single assets’ in the Vault section, choose the AUTO farm and then select the number of AUTO tokens to be deposited and confirm the transaction.

For trading tokens, the user needs to navigate to the Swap section from the main menu, change the tokens to be swapped from one to another, set the slippage tolerance, and confirm the transaction.

Projects wishing to apply for the AutoAmplify onboarding program can submit their application here.

The AUTO Token

The AUTO token is the native governance token for the AutoFarm Network with a maximum supply of 80,000 tokens. AutoFarm was introduced on Binance Smart Chain without any pre-farm or pre-sales. Starting from 15 December 2020, AUTO were minted linearly, which ended in October 2021, with daily emission fixed at 230.4 AUTO daily. AUTO tokens are deflationary, as their supply is limited and will be continuously burned to increase their scarcity. The token distribution is as follows: 74.5% goes to the vault token mining program, 12% goes to the team to ensure sustainable and rapid innovation; 13.5% is reserved for incentives for cross-chain vaults and other future products of the ecosystem.

AUTO tokens can also be staked into Single AUTO Vault. Users with staked AUTO tokens are able to participate in the on-chain community governance by proposing and voting on network changes as well as earn additional rewards from the fees collected on AutoFarm. 

Is Autofarm safe?

Autofarm has also integrated CertiKShield, a platform that analyzes and monitors blockchain protocols and DeFi projects as a safeguard against potential thefts. Additionally, Autofarm smart contracts are monitored by Skynet, CertiK’s on-chain automated monitoring system that constantly searches for vulnerabilities in smart contracts.

Autofarm users can also purchase insurance from smart contract failure and potential exploits from Soteria and InsurAce. Autofarm runs a bug bounty program with Immunefi with a reward of up to $100,000. All Autofarm’s smart contracts are protected with 24-hour time-locks as an additional safety measure. 

The Autofarm team is anonymous; its Founder and CEO names himself MILDGIRAFFE and claims to have an extensive background in project building. His crypto journey began in 2019 when he started algorithmic trading on a Centralised Stock Broker’s API. The team also includes a Marketing and operations manager, a front-end developer, and a back-end developer.

Partners

Autofarm has many partners and integrations across all 15 deployed blockchains on the protocol. The most recent ones include the GOGO coin, a DeFi protocol for asset management and savings launched under the AutoAmplify onboarding program, bringing more vault opportunities for users. Another recent strategic partnership is the integration of 15th chain Aurora boosting additional cross-chain capabilities. 

What’s next?

Autofarm plans to grow its ecosystem with more products, services, and chains, integrate more vaults, deploy on more chains and introduce a DAO. 

Links

https://autofarm.gitbook.io/autofarm-network/

https://autofarm.network/voting/