AutoFarm Revised Tokenomics and AUTO Vault Now Live

The hyper-optimized cross-chain yield aggregator has launched a new single vault for its AUTO token.

By
Ahamdi Abarikwu
on
May 19, 2021
Category:
BSC News

Introduction

The recent boom in Decentralized Finance (DeFi) encouraged many people to get involved in yield-farming and liquidity mining. While some investors learnt the necessary skills to invest by themselves in DeFi, others found it arduous to continuously monitor the market and charts. The latter group often resorted to options that would not require them to undertake much trouble, with vaults becoming a key concept for these low-key investors.

Vaults are pools of funds that are designed to maximise the returns on the funds in their pools. Vaults, depending on the yield-aggregating platform offering it, use diverse strategies to allocate funds and take advantage of earning opportunities. But the main attraction of vaults is that an investor does not need to do any work nor have knowledge of the vault's algorithms. All an investor has to do is deposit their assets into the vault, sit back, and let the vault deploy their assets and bring in profits.

Source: Medium

One of the foremost yield-aggregating platforms, AutoFarm, has just launched a new vault - the single AUTO Vault, and revised the platform's tokenomics. This move, according to AutoFarm, is designed to maximally benefit its users and ensure the long-term sustainability of the platform.


What Is the Single AUTO Vault?

Much of  AutoFarm's vaults for single tokens have attracted much interest from investors because of their enticing returns and absence of impermanent loss. The AutoFarm user-community, however, desired a single vault for the platform's native token, $VAULT, which was non-existent before their latest launch.

In response to the wishes of the community, the AutoFarm team has created a single AUTO vault. The vault went live on May 19 at 8pm (GMT+8).

Users who stake AUTO tokens in the new AUTO vault will have their yields compounded automatically, just like other vaults in the platform. Additionally, they will have the right to contribute to AutoFarm's governance.

All AUTO tokens staked in the new AUTO vault will be locked for seven days, while voting activities will be opened during the last week of every month.


Adjustments In Fees

The creation of the new AUTO vault made a revision of the fee structure necessary. The Binance Smart Chain has been recently hit by network congestion and a slight increase in gas fees. 

Source: Medium

Consequently, all vaults will be charged an extra 1% as performance fee. A breakdown of the revised fee structure is as follows: 

  • Base Controller Fee: 0.4% (revised)
  • Platform Fee (treasury): 0.5% (no change)
  • Vault Fee ($AUTO buyback & burn): 1.5%, 3.0% for non-$AUTO earning vaults (no change)
  • Vault Fee (Revenue shared with single AUTO vault): 1% (New)
  • Deposit Fee: <0.1% on initial capital (no change)
  • Withdrawal Fee: 0.0%. 

More on the updated fees can be found here


Details Of Revised Tokenomics

The revised tokenomics went into effect simultaneously as the new AUTO vault (May 19 at 8pm GMT+8). Details of the revision are as follows, 

1. The total supply of AUTO will maintain its cap of 80,000. Daily emissions will be pegged at 230.4 AUTO. 

2. Daily emissions allocated to the BSC vault mining program will be reduced from its previous allocation of 202.5216 AUTO (minus team allocations) to 141.76512 AUTO. This represents a reduction of 30%. 


Source: Medium

3. The remaining 60.75648 AUTO daily emissions (30%) will be kept in reserve to be used as incentives for other products of the Autofarm ecosystem in the future.


More About AutoFarm

AutoFarm is a DeFi platform that aggregates yield-farming opportunities. It is currently running on Binance Smart Chain and Huobi ECO Chain. 

The protocol has several optimized-earnings vaults and supports DeFi protocols such as Venus, Pancakeswap, Belt Finance, MDex, BakerySwap along with many others.


Concluding Thoughts

The launch of the new AUTO Vault was in keeping with the desires of the AutoFarm community. To better secure the overall interest of all stakeholders of AutoFarm, the revision of both the fees structure and the AUTO tokenomics became necessary to ensure the platform is sustained on a long-term basis. The transparency that AutoFarm provides to its community will help them sustain engagement and maintain their portfolio of investors in the long-run.

For more information about AutoFarm, visit the platform's media links

Website | Twitter | Medium | Discord 

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Ahamdi Abarikwu

Ahamdi Abarikwu is an Electrical Engineer and a lover of anything crypto. He is also an avid writer, proofreader and editor. He loves to play Scrabble in his spare time. He hold bags mostly in BabyDoge, CSM (Crust Storage Network), and JulD.

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